1. ENGAGING AND EMPOWERING ETHICAL EMPLOYEES Chapter Ten

2. Chapter 10 Learning Objectives Describe how to engage employees at work Manage three types of employees: go- getters, fence-sitters, and adversarials Facilitate an Appreciative Inquiry workshop Implement Open Book Management and a Scanlon-type gainsharing plan Distribute financial improvements to all employees through profit sharing, stock options, employee stock ownership plans, and cooperatives Chapter 10: Collins, Business Ethics

3. Extent of Employee Engagement Organizations need talented employees committed to task performance, organizational goals, and the organization itself Employee engagement is an emotional bond or attachment an employee has to the work task, organization, and its members Chapter 10: Collins, Business Ethics

4. Engaging Employees Human Needs  Abraham Maslow differentiated five categories of needs every individual has: physiological, safety, social, self-esteem, and self-actualization Chapter 10: Collins, Business Ethics

5. Engaging Employees Insert Exhibit 10.1 Chapter 10: Collins, Business Ethics

6. Engaging Employees Job Satisfaction  Frederick Herzberg and his colleagues interviewed 203 accountants and engineers employed at various companies about their job satisfactions and dissatisfactions  Herzberg concludes that job satisfaction is not a linear concept Chapter 10: Collins, Business Ethics

7. Engaging Employees Insert Exhibit 10.2 Chapter 10: Collins, Business Ethics

8. Engaging Employees Organizational Justice  Scholars distinguish among four forms of organizational justice: procedural, informational, interactional, and distributive justice Chapter 10: Collins, Business Ethics

9. Engaging Employees Unethical Bullies  Bullying is defined as repeated verbal abuse or abusive conduct that is threatening, humiliating, and intimidating and interferes with work Chapter 10: Collins, Business Ethics

10. Engaging Employees Meaningful Work  Meaningful work is typically defined as spending time at work to achieve something that is personally desirable  Meaningfulness occurs when an employee exhibits passion for daily work activities and pride in accomplishments Chapter 10: Collins, Business Ethics

11. Engaging Employees Insert Exhibit 10.3 Chapter 10: Collins, Business Ethics

12. Engaging Employees Measuring Employee Engagement  According to Buckingham and Coffman’s analysis of Gallup interviews, “excellent front-line managers had engaged their employees and these engaged employees had provided the foundation for top performance” Chapter 10: Collins, Business Ethics

13. Engaging Employees Insert Exhibit 10.4 Chapter 10: Collins, Business Ethics

14. Engaging Employees Insert Exhibit 10.4 Chapter 10: Collins, Business Ethics

15. Employee Empowerment Empowerment refers to giving employees decision- making authority, which can be further solidified with an ownership stake in the organization Chapter 10: Collins, Business Ethics

16. Employee Empowerment Who to Empower?  Many organizations have three types of employees in terms of workplace attitudes and behaviors: 1. Go-getters, who are fully engaged with the work experience 2. Fence-sitters, who put in a good day’s work for a good day’s pay 3. Adversarials, who have an unfavorable attitude to both the nature of work and authority Chapter 10: Collins, Business Ethics

17. Employee Empowerment Insert Exhibit 10.5 Chapter 10: Collins, Business Ethics

18. Employee Empowerment Measuring a Manager’s Empowerment Behaviors  Empowered employees develop the mindset of a manager by taking on some managerial responsibilities and accountabilities Chapter 10: Collins, Business Ethics

19. Employee Empowerment Insert exhibit 10.6 Chapter 10: Collins, Business Ethics

20. Empowering Through Teams Empowering Effective Teams  Patrick Lencioni: Ineffective teams suffer from five dysfunctions: absence of trust, fear of conflict, lack of commitment, avoidance of accountability, and inattention to collective results  The most effective teams consist of members who trust one another, engage in constructive conflict, personally commit to goal accomplishment, are accountable for their behaviors, and focus on collectively achieving their assigned tasks Chapter 10: Collins, Business Ethics

21. Empowering Through Teams The Team Problem-solving Process 1. Present the problem 2. Define individual solutions 3. Present individual solutions 4. Clarify individual solutions 5. Brainstorm 6. Group and prioritize solutions 7. Play devil’s advocate 8. Implement and monitor Chapter 10: Collins, Business Ethics

22. Empowering Through Teams Open Book Management  Transparency is an essential element of trust building  The information shared could include balance sheets, revenue, profit, cost of goods, customer returns, on-time shipments… Chapter 10: Collins, Business Ethics

23. Empowering Through Teams Insert Tips and Techniques Open Book Management Chapter 10: Collins, Business Ethics

24. Empowering Through Teams Appreciative Inquiry:  Team-based management technique that focuses on the strengths of both the employee and the organization Chapter 10: Collins, Business Ethics

25. Empowering Through Teams Appreciative Inquiry is a four-phase process 1. Discover 2. Dream 3. Design 4. Destiny Chapter 10: Collins, Business Ethics

26. Empowering Through Teams Daily Performance Reflections  Set aside 10 to 15 minutes at the end of every day for teams to process the events that occurred during the day and make preparations for managing any ongoing problems the following day Chapter 10: Collins, Business Ethics

27. Empowering Through Group-Based Financial Incentives Scanlon-Type Gainsharing Plans  The five elements of a Scanlon-type gainsharing plan are a gainsharing coordinator, suggestion system, gainsharing team, review board, and group-based financial bonus Chapter 10: Collins, Business Ethics

28. Empowering Through Group-Based Financial Incentives Profit Sharing  Providing employees with a share of company profits is also ethical, motivating, and empowering  When the company does well, the employees benefit financially Chapter 10: Collins, Business Ethics

29. Empowering Through Group-Based Financial Incentives Stock Option and Stock Purchase Plans  Stock options give an employee the right to purchase a specific number of company shares at a fixed price by a particular future date, typically 10 years Chapter 10: Collins, Business Ethics

30. Empowering Through Group-Based Financial Incentives Employee Stock Option Plans (ESOPs)  The company gives all full-time employees over the age of 21 a significant equity stake in the company  ESOPs are complex financial vehicles requiring legal assistance Chapter 10: Collins, Business Ethics

31. Empowering Through Group-Based Financial Incentives Cooperatives  Producer, consumer, and employee cooperatives are an alternative communal way to govern a business and raise capital Chapter 10: Collins, Business Ethics