1. 1 The Collaborative Mindset: Managing Relationships between Employee and Organization OS608 November 15, 2006 Fisher

2. 2 Agenda Feedback summary What does it mean for employees to be loyal to their employers? Where is the value to employers? How can employers build loyalty?

3. 3 Feedback summary Additional methods of discussion More in-class writing Small group discussions Want to hear from different people in the class Where is all of this heading? What should I be learning?

4. 4 Opening questions What do employees owe their employers? What do companies owe their employees?

5. 5 Relationship between employee and organization Relationship has been shifting over the past 20 years or so Non-standard employment becoming more common (BLS, 2005) 2-4% of workers are contingent 10.3 million independent contractors (7.4%) 1.2 million temps “Protean career” Relationships between organizations also becoming more important

6. 6 Psychological Contracts Do you feel you have a psychological contract with Clarkson? Type? Content? How do psych contracts change over time? Perceptions of fairness Related outcomes Does this concept affect your approach to the job interview process? How?

7. 7 Loyalty Forms of organizational commitment Affective Normative Continuance Commitment to multiple entities Organizational citizenship

8. 8 Fortune 100 Best Companies to Work For: Criteria Fortune’s evaluation of each company’s demographic makeup, pay and benefits programs, etc. Credibility (communication to employees), Respect (opportunities and benefits), Fairness (compensation, diversity), and Pride/camaraderie (philanthropy, celebrations). Employee responses to a 57-question survey from the Great Place to Work Institute. Minimum of 350 randomly selected employees from each company Attitudes toward management, job satisfaction, and camaraderie.

9. 9 2005 Winner: Wegman’s 2004 sales of $3.4 billion; 67 stores in NY, Pennsylvania, New Jersey, and Virginia Operating margins about 7.5%, double what the big four grocers earn and higher even than Whole Foods. Labor costs run between 15% and 17% of sales, compared with 12% for most supermarkets. Annual turnover rate for full-time employees is just 6% vs. 19% for other grocery chains Source: Boyle, M. (Jan 24, 2005). The Wegman’s Way. Fortune.

10. 10 2006 Winner: Genentech Small biotech firm based near San Francisco Slogan: In Business for Life – passion for lifesaving technology is what attracts people 2005 revenues of $6.6 billion; 50% of revenues go back into research Annual turnover rate for full-time employees is 5% For 1,364 new jobs in 2005, they had 246,000 applicants Source: Morris, B. (Jan 20, 2006). Genentech: The best place to work now. Fortune.

11. 11 How to develop loyalty in employees? Interesting work Innovative benefits that would be hard to give up Potential for advancement Make it fun! Positive work environment Fair treatment Upholding commitments to employees

12. 12 Lab #3 Tuesday, November 28 Role play of performance feedback meeting You will be assigned Role (supervisor or subordinate) Role play partner Role play time (1/2 hour between 2:30 and 5:30) Paper evaluating the experience due on Monday, Dec. 4

13. 13 For Monday Read Latham, Almost, Mann & Moore and Jackman & Strober (2003) articles How do performance management and relationship management affect one another? Start thinking about how you will use these concepts in the role play.