BEIT 336 (Formal Report) - Essay Example

BEIT 336 Formal Report Contents Contents 2 OVERVIEW 3 PRODUCTIVITY 4 Employee Welfare and Work-Life Balance5 Flexible Working throughout an Organization 7 HR and Training Policy 8 MORALE 9 ABSENTEEISM 10 TURNOVER 11 SUMMARY & CONCLUSIONS 12 RECOMMENDATIONS 13 References 14 OVERVIEW Flexible working schedules are increasingly becoming norm in modern work environments. As the array of available flexibility options broadens, contemporary companies are under immense pressure to evaluate how each scheduling program affects their performance in terms of employee performance, as well as, managers’ and supervisors’ perception or acceptance of the program. Understanding the association between flexible scheduling of work and consequent organizational performance is imperative in selecting the most appropriate flexible working technique. Such comprehension is also pertinent to development of flexible working policies that would, in turn, guarantee optimization of projected benefits like increase in employees’ productivity, elevation of morale, reduction of absenteeism and decline in turnover. In addition, understanding this relationship would go a long way towards challenging or confirming assumptions made in regard to flexible work hours and in quantifying the current state of an organization to determine its readiness for implementation of a flexible work schedule. Most importantly, outcomes of the employee and organizational performance measurement have implications vital to the future development of flexible work programs in a company. If there is a positive connection between flexible working and employee performance, as illustrated in this research, companies can utilize the information to facilitate change in working culture and plan more effective schedules in the future. The program in question in this case is flextime, which can constitute several variations depending on the apportionment of flexible and core working hours and the ease or complexity of using the program in place. Use of a flextime work schedule enables employees to gain control over the start and end times at their respective workplaces. This research, therefore, seeks to evaluate whether Madison Supply Company can implement flextime to counter negative employee performance metrics like low productivity, low morale, absenteeism, and turnover. Investigation of the research question was reliant on collected primary data and documented information on the issue, or secondary data. Primary data was gathered using employee surveys. The surveys involved use of questionnaires specifically designed to question employees’ outlook on flextime and its influence on their productivity, morale, tendencies to miss work, and propensity to quit their jobs or remain loyal to an organization. Collection of primary data also involved talking with employers and employees in one on one interviews, so as to get their insight on the issue. Secondary data collection involved an intense database search of the ISU library, and other online libraries like EBSCOhost and ProQuest. This made it possible to gain access to reliable information sources relevant to benefits and challenges associated with flextime implementation. Articles were also acquired through conventional internet search, through use of key word flextime and employee performance. This report discusses the diverse metrics of employee performance, that is, productivity, morale, absenteeism, and turnover within the context of flextime implementation. The report also evaluates these performance indices, as depicted by companies that have implemented the flextime program. It further analyzes possible benefits of a flextime program, while presenting recommendations, showing why Madison Supply Company should implement it and how maximum efficacy of the program can be achieved. PRODUCTIVITY Productivity is deemed one of the key determinants of employee performance. According to research conducted by Kelliher’s (2011) on companies like Centrica, Lehman Brothers, and KPMG, among others, there was a strong correlation between flexible work schedules and employee productivity. Kelliher’s (2011) also showed that only a small percentage of individual participants in the target corporations associated flexible work schedules with a negative impact on their productivity and overall performance. Clear understanding of the positive effects of flexible work programs on productivity should make it possible for organizations like the Madison Supply Company to deal effectively with managerial or even individual employee resistance to flexible working. Understanding how flexible working improves productivity also paves way for innovation of the most effective methods or approaches to work. (Grzywacz, Casey & Jones (2007), asserts that adequate cultural acceptance of flextime becomes evident when large numbers of workers from every organizational level and division describe their respective working patterns as flexible. The author is, however, emphatic that the level of employee productivity when using flextime depends on whether the program is governed by a formal contractual agreement, or is based on an informal agreement with management. If the latter is the case, employees may feel like they are treated inequitably; an aspect that inevitable negates productivity. This puts emphasis on the need for formality in the flextime formulation process. Different measures of employee productivity are described in detail hereunder. Employee Welfare and Work-Life Balance Maintenance of work-life balance and enhancement of workers’ well-being is one of the primary advantaged linked to flexible working. This effectively translates to elevated employee productivity. This is because workers gain the ability to ensure that neither their personal life nor their work responsibilities clouds either sphere of life. The interrelation of employee welfare considerations and work-life poise brings about factors like job satisfaction, organizational commitment, dynamism at work, and enthusiasm for assigned obligations. These research outcomes support the expectation that employees that are better equipped to establish balance between their personal lives and work obligations have improved wellbeing. Such employees, therefore, are in a clear state of mind to effectively fulfill their responsibilities, which translates to enhanced productivity. In the study, most workers that had become used to flexible working said they would not be willing to revert to the traditional standard work schedules. These workers linked the flexible work plan to reduced stress and job pressure, hence increased productivity. These research findings are illustrated in the pie chart hereunder. The chart clearly shows that the greatest percentage of workers associated flextime with improved work-life balance, well-being and consequent productivity. This is evident from that fact that, 60% of the research respondents linked flexible working to positive work effects, 30% said it had no effect, while a meager 10% reported that flextime had a negative effect on work-life balance. This shows that the benefits of flextime in enhancing workers’ welfare and work-life balance outweigh perceived disadvantages. Figure 1Employee Welfare and Work-Life Balance The study findings are consistent with previous research on several companies. For example, renowned pharmaceutical company, GlaxoSmithKline, implemented flexible work time plans in one of its departments. After evaluation, the organization realized that the employees wholly embraced the flexible work schedule and even surpassed the stipulated goals. This clearly shows that greater productivity was attained through flextime implementation. Another exceptional illustration is that of JP Morgan Chase. During a study by Meyer et al. (2001), 84 percent of workers reported that their level of productivity was high or excellent if they had managers who showed sensitivity to concerns of flexibility. Contrarily, 55 percent of the employees reported adequate productivity in inflexible work situations. Further examination revealed that alternative working schedules like flextime, part-time work, compressed work weeks, and job sharing, all contributed towards increased company profitability, which effectively shows increased employee productivity. These studies provide adequate evidence showing that, when employees are granted an opportunity to adapt their work plans to meet varying personal demands and job demands, they tend to depict greater value through increased work output. According to Eldridge & Nisar, (2011) flexible working can also foster employee productivity by reducing amount of time spent by workers commuting, reducing workplace presence hours and associated stress, as well as, through reduction of workload. It is however, important to note that reduction in work hours may exert more pressure on workers to complete the same amount of work, within a limited period of time. This implies that flextime should be designed in a manner that reflects the number of both flexible and core hours available. Flexible Working throughout an Organization Flexible working or flextime should be formally availed to all employees within an organization, in order to attain uniform productivity. Just like Barnett and Hall (2001) emphasize from research findings, an all-inclusive flextime program is bound to be more acceptable and wield higher efficacy than one which is only limited to a few number of workers. This is applicable whether or not, a company’s policy formally stipulates availability of flextime for all employees. In cases where flexible work schedules are successfully embedded into the corporate culture, emphasis is higher on employee work results, as opposed to the number of hours workers spend in the office. It is also noteworthy to mention that creation of a culture characterized by flexible work schedules, results in a rise in number of employees working beyond the confines of the organization. This implies that workers will continue to meet their obligations even when not in their offices, which further means greater productivity and a spread out working culture. This tendency to expand workers’ capacity outside the tradition work environment is particularly evident in modern tech companies like Google, Microsoft, Amazon, and many other companies, whose performance is hinged on the e-commerce platform. Productivity with regard to this element of widespread flexibility is also enhanced by technology use and undercutting of employees’ unproductive presence. HR and Training Policy The other aspect of flextime associated with increased productivity is based on accompanying HR policies and training requirements. For example, both workers and managers in the study stated that they often acquire technical knowledge through flextime implementation. For example, employees find it necessary to gain information on the technical requirements of remote working and time management, while managers acknowledge the importance of education on effective management of flexible employees. Such implicated training and HR needs of flextime, therefore, play a crucial role in enhancing workers’ productivity. Nonetheless, this form of productivity can be best achieved if HR and training policies are desirable and suited to the specific conditions of a company. Through such an undertaking, a company like Madison Supply would have the ability to guarantee efficient employee management and consequent productivity, through initiatives like supervision and career progression measures. MORALE Morale refers to attitudes, emotions as well as the overall outlook of the workers in the work environment. Since workers are always glad to have any kind of adjustment in the workplace, it is imperative for employers to deal with such issues accordingly. Employees tend to work extra ordinarily hard and at the same time have a more dedicated fashion in holding on to their perfect schedules while re-balancing their lives. Morale is more acceptable to employees who find their employers more considerate and accommodating to their schedule. This means that workers will be more satisfied and will not look for different jobs elsewhere. Therefore, employees become more loyal and committed to their current organization. The employees of Madison Supply Company have been dissatisfied with the way their time is programmed thus dissatisfied. Therefore, the organization executives should consider utilizing flextime as a strong incentive to improve their employees’ morale (Eldridge & Nisar 2011). This can be effected as a reward for work ethic and strong contributions towards improving the employee’s schedule. Numerous workers seek flextime to be able to further their training and education and this consequently makes them more efficient in their work. For instance, after Microsoft adapted flextime, employees became more skilled and innovative. This shows that flextime is more imperative to employees than their salaries especially when appraising their job offers. Workers that have flexibility are aware of their schedules are structured and are able to plan themselves in advance. This is a factor that has been utilized in improving people’s morale. Job sharing as well as increased telecommuting has always reported less stress and job satisfaction and. Therefore, Madison Supply Company should focus on improving morale by increasing the opportunity to fit employees’ commitments as well as inclusion of the free time. The employees will therefore, have more control of their workloads, as well as better manage work and other life occurrences. This will also help the organization to avoid congestions in their life. Flextime allows people to have leisure time and also attend to their personal activities as well as avoiding stress. Organizations that include this kind of culture will always record better performance than the ones that have not adapted flextime. Madison Supply Company utilization of flextime will assist in improving the employees’ morale and end up becoming more productive. There is a very minimal negative impact on morale for adopting flextime. Figure 2 Morale ABSENTEEISM Research conducted by Eldridge and Nisar, (2011) attests to absenteeism being one of the major factors that has affected positive productivity. Nevertheless, according to Dalton and Mesch (1990), flextime can assist in lowering the levels of absenteeism. This is because of the fact that it allows individuals to organize as well as fulfill their private schedules and lives better. Additionally, it provides employees with a bigger level of work autonomy and this indirectly contributes positively ot better commitment and attitude by the employees. For instance, in 1987 a study conducted on flextime in pharmacy technicians by Askenazy (2004). depicted that flextime effectively eliminated tardiness as well as reduced absenteeism from 4% to 2%. Flextime therefore seems to positively affect absenteeism in a good way. This is because organizations that have enough flextime show significant decrease in the level of absenteeism. Madison Supply Company has been affected by employees’ absenteeism. However, study by Altman and Golden, (2007). on methods of absenteeism control quotes flextime as one of the best ways of controlling absenteeism. It is estimated that absenteeism costs organizations up to 36% of the payroll. This usually translates to about $4.5 million dollars every year. Unplanned absences like casual leaves as well as sick leaves could result to a productivity loss of about 21%. It is estimated that every employee takes about 5.3 unplanned leaves every year (Beers, 2000). By taking flextime into consideration, it will effectively reduce absenteeism as well as help in reducing direct costs. At the same time, it will provide employees of Madison Supply Company with better control of their life. Additionally, the organization will increase commitment and motivation, as well as, provide numerous indirect benefits for the company. By applying flextime policies in a judicious way, it will effectively reduce absenteeism. However, while flextime has effectively proven to reduce absenteeism, it is likely can only be applied to workers that need flexible hours, as well as, if adapted to specific needs of worker’s departments. TURNOVER Turnover is also a major factors affected in Madison company. Lack of flextime has caused loss of talented staff and it is expensive as well as time consuming. In a recent study by Ala-Mursula et al. (2002), employees from six hundred and fourteen organizations ranked flextime as one of the most attractive retention tool. It is considered to be more effective than salaries, training as well as stock options. Turnover at Madison is inflexible because they do not apply any mode of flextime. A research by Hornung, Rousseau and Glaser (2008) identified that flextime improved workers commitment to their organization. . This is imperative, because it provides a challenge to the usual assumption that workers with flexible working arrangements like part-time hours or telecommuting depicts a sign of reduced commitment. Such assumptions are damaging to peoples careers s well as to efficient management, suggesting that such factors instead of performance can be in play while evaluating work flexibility for employees. There is a huge subsequent risk for undervaluing the flextime contributions to workers performance. It is therefore imperative that Madison should recognize and value commitment enhancement levels among workers that have flexible schedules. Therefore, they should develop different ways of translating flextime into tangible benefits for every person concerned. SUMMARY & CONCLUSIONS The extensive review of flextime literature depicted that flexible work schedules provide extensive benefits to employees. This includes more enrichment in their job, tardiness reduction, reduced level of stress, improved productivity, as well as, reduced absenteeism. Flextime is considered as an employee benefit which can improve an organizations poor performance like Madison Supply Company. Larger organizations could enact flextime in improving employees’ morale, as well as, reducing operation costs. This way; employees manage to receive added benefits without necessary having their salaries raised. For employees to have better and improved job satisfaction, Madison as well as other organizations should strive to improve flextime. This will improve the employees’ private time and reduce work-family relationship while at the same time reducing the level of conflict stress. Employees will better benefit through improved employee flextime because it will improve retention. Additionally, it will increase productivity via reduced absenteeism and turnover, as well as lowering costs by use of job sharing and non-territorial office sharing. RECOMMENDATIONS It is imperative to be precise and consistent when offering employees with flextime. Therefore, employees should have detailed policies that outline the departments that are eligible to have flextime. Some of the departments can also be considered to be ineligible for flextime implementation. Therefore, there should be a strong rationale that should be considered to ensure that flextime is accessible fairly. With fair promotion of flextime, people will not only manage better production but will also reduce the level absenteeism. Organizations like Madison should ensure that they create a strong flextime policy. This will ensure that protocols for work related aspects, hours, as well as, all kinds of expectations have been properly stipulated before employees start utilizing their flextime schedules. Additionally, the work environment is supposed to be professional and cohesive, even when a worker is working from home. It should also be applicable for employees that work during unconventional hour’s time than is typical in the office. However, it is imperative to enhance communication through each step of implementing flextime procedures. References Ala-Mursula, L., Vahtera, J., Kivimaki, M., Kevin, M., & Pentti, J. (2002). Employee control over working times: associations with subjective health and sickness absences. in Journal of Epidemiology and Community Health, 56(4), 272-279. Altman, M. & Golden, L. (2007). The Economics of Flexible Work Scheduling: Theoretical Advances and Paradoxes”, in B. Rubin (ed.). Research in the Sociology of Work, 17, 313–342. Askenazy, P. (2004). Shorter Work Time, Hours Flexibility and Labor Intensification. Eastern Economic Journal, 30(4), 603-614. Barnett, C., & Hall,T. (2001). How to use reduced hours to win the war for talent. Organizational Dynamics, 29(3), 192-211. Batt, R., & Valcour, M. (2003). Human resource practices as predictors of work-family outcomes and turnover. Industrial Relations, 42(2), 189-219. Beers, T. (2000). Flexible Schedules and Shift Work, Replacing the 9-to-5 Workday? Monthly Labor Review, 123(6), 33-40. Casey, R.., & Grzywacz, G. (2008). Employee health and well-being: the role of flexibility and work family Balance. Journal of Managerial Psychology, 11(1), 31-47. Eldridge, D., & Nisar, M. (2011). Employee and Organizational Impacts of Flexitime Work Arrangements. Relations industries, 66(2) 213-234. Grzywacz, G.; Casey, R, & Jones, A. (2007). The effects of workplace flexibility on health behaviors: A cross-sectional and longitudinal analysis. Journal of Occupational and Environmental Medicine, 49(12), 1302-1309 . Hornung, S., Rousseau, M., & Glaser, J. (2008). Creating flexible work arrangements through idiosyncratic deals”, in Journal of Applied Psychology, 93(3), 655-664. Kelliher, C. (2011). Working Families Flexible Working and Performance. Retrieved 24 June 2014 fromhttp://www.som.cranfield.ac.uk/som/dinamic-content/media/WF-DA%20Flex%20Working%20Report.pdf Meyer, S., Mukerjee, S., Sestero, A. (2001). Work-Family benefits: Which ones maximize profits? Journal of Managerial Issues, 13(1), 28-44. Read More