Techniques to Improve Employee Satisfaction - Literature review Example

HERE HERE YOUR HERE HERE Techniques to Improve Employee Satisfaction Improving employee morale and satisfaction toward meeting organizational goals is not often an easy task, considering the cultural diversity in today’s rapidly globalizing environments. However, it is considered one of the most fundamental success opportunities in order to find competitive advantage and meet long-term strategic goals. There are many different companies, both domestic and international, that have piloted satisfaction schemes in an effort to build more commitment and reduce turnover from unsatisfied employees. In an environment that relies on human resources to build human capital in order to be considered a market leader, employee morale programs are necessary and require considerable commitment in order to achieve positive results. The cost of turnover, including training new employees, is a strategic concern that can have long-term implications. Some organizations rely on technology as a method of improving employee perceptions of autonomy in their job roles. Self-service tools, such as development of a communications Intranet, is one method by which many industries allow employees to network and also gain a sense of appreciation by allowing them access to corporate information. These systems can sometimes allow employees to request time off, review different internal job postings, and even provide for suggestions when properly constructed with information technology support (Copeland, 46). These types of systems offer employees a new method of becoming an integral part of the organization without necessarily being forced to rely on management interaction. Giving them the electronic self-service tools necessary in areas of human resources and knowledge management is one method finding success in improving satisfaction. In the service industry, such as with hotel tourism and restaurant organizations, there is a demand for employees to be equipped with uniforms that represent the aesthetic demands of the industry leadership. Nelson & Bowen provide information about efforts being undertaken in the casino industry for service employees to create the perceptions of ambience when building a uniform design methodology (87). According to the authors, in this type of service environment, employee morale can be boosted with design considerations that are employee-centric much more than just as part of marketing symbolism (88). Even though this would seem to be a rather straight-forward style of thinking, often industries overlook these important factors as human behavioral tendencies exist for service workers in terms of self-image, self-esteem and perceptions of how they are perceived as service workers by the clients they interact with. Improving satisfaction by including more contemporary designs, or simply involving the service workers, is one element in this industry that has found considerable success. There are other organizations that have more ample resources, such as the large multinational enterprise, that can adopt incentive schemes involving financial payouts directly related to performance. Adair & Thomas offer that receipt of bonus compensation is the most primary incentive for the majority of today’s employees (57). Monetary rewards can be based on special project performance, individual job role performance, or simply meeting specific strategic targets related to their specialized role in the organization. However, the authors argue that these rewards must be considered fair in order to build higher levels of employee satisfaction and can be considered insulting if they are perceived as being too low (58). If the industry is going to consider financial rewards, budget issues along with employee attitude must be balanced appropriately or it could lead to even less commitment in their job roles. There is another dimensions associated with improved satisfaction directly related to the leadership style that is present within the enterprise, involving the level of trust that subordinates have with management and leadership. “Trust forms the foundation for effective communication, employee retention, and employee motivation and contribution of discretionary energy” (Heathfield, 1). Trust is built with a manager that has less emphasis on control systems and involves the employees in day-to-day decision-making so that there is a decentralization of control and a more horizontal communications strategy. Trust is tied directly to what is referred to as transformational leadership design in order to build higher commitment. Adams & Adams describe transformational design as a management system in which there is a specific vision, where managers coach and mentor for the pursuit of employee development, and where people are given opportunities for influence in decision power and model positive behaviors by which employees can be guided (17). Industries that are looking to improve their employee satisfaction levels can consider moving from a typical transactional management philosophy, or that which works on contingent rewards with higher emphasis on control. The transformational design inspires employees through trust-building exercises and a fundamental shift in communication styles that take authority away from senior-level management and into the laps of employees at all levels. This type of system requires a human resources-focused structural design where employee development and ensuring employee purpose are the fundamental drivers in leadership philosophy. Studer provides a very generic method of improving satisfaction and morale, which again starts with leadership actions by offering personalized thank you notes as part of the regular workplace principle (97). In the health care industry, a successful motivational philosophy being used is for executive leaders to “harvest” the names of physicians and lower-level staff so that e-mails can be delivered routinely that highlight their known contributions to performance and meeting hospital goal. The hand-written note is considered a quality method for improving organizational commitment and achieving fewer turnovers. Even though this would seem to be a simple concept without much effort, it is highly over-looked in the bureaucratic health care environment which is why this industry often has considerably high turnover rates and costs for training. “At world class organizations, thank you notes are so hard-wired that the CEO mails notes home to front-line employees on a consistent basis” (Studer, 98). What this does is personalize the employment experience and show individual rewards and individual value when an employee has achieved a milestone or been noticed for superior performance gains. Tesco is one organization that has employee satisfaction schemes occurring as a regular part of their business philosophy. This enterprise is one of the leading supermarkets in the United Kingdom and other parts of Europe, offering not only grocery products but a wide range of home goods. As a method to improve motivation in this service-based environment, the company developed a balanced score card system that is designed to drive people development and assist in their training needs to make them more involved in decision-making and also as a career path measurement template (Holbeche, 31). Tesco believes that there is an intrinsic link between how employees perceive their role in the company and their morale levels if the business hopes to deliver high service and quality standards (Holbeche). The balanced score card consists of many different measurement criteria that can be adapted for individual workers or group workers depending on what is being assessed. Much like the standard performance appraisal used in human resources across the world, the balanced score card measures job role function, goal achievement and development needs as part of a needs analysis program. Though this is a tool used for management, the criteria can be developed using employee insight and also reinforces that Tesco takes their job roles seriously and is willing to be flexible and act as coaches to improve commitment and loyalty. Abbey National and Prince’s Trust, two European financial institutions, attempted a different methodology for improving satisfaction and morale by introducing a new networking scheme to build team focus, trust and skills development. The companies developed a volunteerism scheme in which local teams become part of a 12 week program helping teenagers develop better skills so they can be more productive members of society in relation to the workplace (Berwick, 4). Volunteer services at these two financial companies shows the level of trust and dedication that the businesses have for employees by allowing them to use their own skills and knowledge to help others in society through mentoring and coaching activities. Rather than allowing managers to be the key participants, it shows that lower-level employees are valued and can transfer their skills and knowledge to the broader society. This emphasis on corporate social responsibility also gives employees the ability to network with one another and feel like part of a team, cohesive organizational culture. In the retail industry, youth-oriented fashion retailer Zara has developed many different methods for improving morale and satisfaction overall. Zara is a fast-fashion retailer, meaning that the turnaround time between new inventory arrivals is quite fast, thus offering customers exclusive designs without concern of social fashion replication by their peers. This has been accomplished through a streamlined supply and distribution system as part of marketing focus. Zara boosts satisfaction by putting much higher emphasis on training and development than many other retailers, offering employees bonuses and giving them full responsibility for profit and loss activities (Ferdows, Lewis & Machuca, 63). Generally, senior in-store managers are responsible for issues such as inventory control, cost reduction, and merchandizing. However, at Zara, employees are trained from the beginning of their first day to understand these advanced managerial concepts in order to build a better skills base and make them feel like a part of a cohesive enterprise. In order to meet customer demands and keep up with fast-fashion at an affordable price, cost reduction and opportunities to further enhance inventory systems is necessary. Zara benefits with these incentives programs and ability to cross-train staff to perform managerial duties by giving them more autonomy, more decision-making power, and letting them feel as though they can forecast and transfer costs. By incorporating them through skills training to become functional leaders with management capabilities, they are able to move through the career ladder thereby improving organizational commitment and loyalty. Each of the described enterprises have very different methods of enhancing employee satisfaction and morale, dealing with incentives systems for financial reward for performance, coaching and development, and also the method by which managers lead their subordinate employees. It was determined in this review of literature that there are a wide variety of potential motivational methods and satisfaction schemes available, each of which has been successful in diverse industry profiles. Works Cited Adair, John and Thomas, Neil. The Concise Adair on Teambuilding and Motivation. London: Thorogood. (2004). Adams, William & Adams, Cynthia. “Transform or Reform?”, Leadership Excellence. Vol. 26, Iss. 11. (2009). Berwick, Isabel. “Clocking in for the Community Charity is about More than Giving Money. Many Companies also Run Employee Volunteer Schemes to Help Local Communities and Improve Staff Retention”. Financial Times. (October 17, 2002). Copeland, Bill. “Making HR Your Business”, CA Magazine. Vol. 137, Iss. 3, (2004). Ferdows, K., Lewis, M. & Machuca, J. “Case Study: Zara”, Supply Chain Forum. Vol. 63, Iss. 2, (2003). Heathfield, Susan M. “Trust Rules: The Most Important Secret About Trust”. Viewed November 12, 2010 at http://humanresources.about.com/od/workrelationships/a/trust_rules.htm. Holbeche, Linda. The High Performance Organization: Creating Dynamic Stability and Sustainable Success. Oxford: Elsevier. (2005). Nelson, K. & Bowen, J. “Making HR Your Business”, Cornell Hotel and Restaurant Administration Quarterly. Vol. 41, Iss. 2, (2000). Studer, Quint. “Self-Test: Are You an Engaged Leader?”, Healthcare Financial Management. Vol. 60, Iss. 1. (2006). Read More