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Chapter10_9thEd.pptxChapter 10
Satisfaction, Engagement, and Potential
© McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
Multimedia Lecture Support Package to Accompany Basic Marketing
Lecture Script 6-1
Chapter Outline
Introduction
Understanding and influencing follower satisfaction
Understanding and improving employee engagement
Understanding follower potential
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Satisfaction, Engagement, and Potential
Too many highly trained, committed professionals return again and again to the methodology that employee engagement programs are what “WE might do to make THEM feel invested in US.” They are an H R brand-loyalty marketing program, really.
Mark Kille, human resources consultant
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Understanding Follower Satisfaction
Satisfied workers are more likely to:
Continue working for an organization
Engage in organizational citizenship behaviors that go beyond job descriptions and role requirements
Help reduce the workload or stress of others in the organization
Dissatisfied workers are more likely to be adversarial in their relations with leadership and engage in diverse counterproductive behaviors
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Employee Turnover
Has the most immediate impact on leadership practitioners
Functional turnover is considered healthy for an organization
Examples: When followers retire, do not fit into the organization, or are substandard workers
Dysfunctional turnover is unhealthy and occurs when an organization’s best and brightest become dissatisfied and leave
Most likely to occur when downsizing is the response to organizational decline
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Table 10.1: Why People Leave or Stay with Organizations
| Why Do People Leave Organizations? | Why Do People Stay with Organizations? |
| Limited recognition and praise | Promises long-term employment |
| Compensation | Exciting work and challenge |
| Limited authority | Fair pay |
| Poor organizational culture | Encourages fun, collegial relationships |
| Repetitive work | Supportive management |
Sources: www.sigmaassessmentsystems.com; Pace Communication, Hemispheres Magazine, November 1994, p. 155; “Keeping Workers Happy,” USA Today, February 10, 1998, p. 1; B. G. Graves, “Why People Quit Their Jobs,” Harvard Business Review, September 2016, https://hbr.org/2016/09/why-people-quit-their-jobs; B. Kaye and S. Jordan-Evans, Love ‘Em or Lose Em: Getting Good People to Stay, 5th ed. (San Francisco: Berrett-Koehler, 2014).
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Items Found on Job Satisfaction Surveys
Global satisfaction: Assesses the overall degree to which employees are satisfied with their organization and their job
Facet satisfaction: Assesses the degree to which employees are satisfied with different aspects of work, such as pay, benefits, promotion policies, and working hours and conditions
Life satisfaction: Concerns a person’s attitudes about life in general
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Table 10.2: Typical Items on a Satisfaction Questionnaire
| These items are often rated on a scale ranging from strongly disagree, or 1, to strongly agree, or 5 |
| 1. Overall, I am satisfied with my job |
| 2. I feel the workload is about equal for everyone in the organization |
| 3. My supervisor handles conflict well |
| 4. My pay and benefits are comparable to those in other organizations |
| 5. There is a real future for people in this organization if they apply themselves |
| 6. Exceptional performance is rewarded in this organization |
| 7. We have a good health care plan in this organization |
| 8. In general, I am satisfied with my life and where it is going |
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Global and Facet Satisfaction and Job Satisfaction Surveys
Important findings on global and facet satisfaction
People generally tend to be happy with their occupation, but may not like the pay, benefits or their boss
Hierarchy effect: People with longer tenure or in higher positions tend to have higher global and facet satisfaction ratings than those newer to or lower in the organization
Job satisfaction surveys are used extensively in both public and private institutions
Survey results are most useful when compared with results from a reference group, such as an organization’s past results or ratings from similar organizations
Based on the survey results, leaders must be willing to take action or risk losing credibility and actually increasing job dissatisfaction
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Theories of Job Satisfaction: Organizational Justice
Based on the premise that people who are treated unfairly are less satisfied, productive, and committed to their organizations
Likely to initiate collective action and engage in counterproductive work behaviors
Components
Interactional justice: Degree to which people are given information about reward procedures and are treated with dignity and respect
Distributive justice: Concerns followers’ perceptions of whether the level of reward or punishment is proportionate to an individual’s performance or infraction
Procedural justice: Relates to the process that rewards and punishments are administered
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Multimedia Lecture Support Package to Accompany Basic Marketing
Lecture Script 6-10
Theories of Job Satisfaction: Herzberg’s Two-Factor Theory
Does not assume that the things that dissatisfied people are always the opposite of what satisfies them
Identifies the following factors of satisfaction:
Motivators: Factors that led to satisfaction at work
Hygiene factors: Factors that led to dissatisfaction at work
Efforts directed toward improving hygiene factors will not increase followers’ motivation or satisfaction
Key to increasing followers’ satisfaction levels is to just adequately satisfy the hygiene factors while maximizing the motivators for a particular job
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Figure 10.2: Herzberg’s Two-Factor Theory
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Multimedia Lecture Support Package to Accompany Basic Marketing
Lecture Script 6-12
Understanding and Improving Employee Engagement, 1
Employee engagement: Followers’ attitudes about the organization and their work activities
Some aspects of job satisfaction are highly related to employee engagement
Fully engaged followers are believed to be more committed to team and organizational success, put forth more work directed effort, and put in the hours necessary to complete assigned tasks
Disengaged followers do not care about organizational success and are more interested in collecting paychecks than completing work assignments
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Understanding and Improving Employee Engagement, 2
Surveys are administered to determine what percentage of people are actively engaged, engaged, disengaged, or actively disengaged
Presenteeism is common in many organizations
Presenteeism: Notion of being at work while one’s brain is not fully engaged
Employee engagement has become so popular over the years because of the engagement-shareholder value chain
Organizations with higher percentages of engaged and actively engaged followers should ultimately generate higher shareholder returns
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Understanding and Improving Employee Engagement, 3
Obstacles in improving employee engagement
Some organizations feel obligated to survey employees but not compelled to improve engagement scores
Some followers feel entitled and will never be engaged, and some jobs are almost impossible to make more engaging
Some organizations erroneously believe perks cause employee engagement
This does not make up for long work hours or monotonous work
Incompetent management
Some leaders have no idea how followers feel about work
Others mistreat their followers and do not care whether they are engaged
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Understanding Follower Potential, 1
Leaders should:
Create teams of motivated, engaged, and satisfied followers
Identify followers with the potential to become future leaders and prepare them to assume roles with greater responsibility
Most organizations report having serious shortfalls in leadership talent
Organizations have tried to solve this problem by hiring outside people into leadership positions but this has challenges
Most people are poor judges of talent and do not always make good hiring decisions
Hiring people from the outside to fill leadership positions can be demoralizing for those in the company and cause them to leave
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Understanding Follower Potential, 2
Best way to tackle the leadership talent shortfall is to identify and develop followers who have the most potential to be effective leaders
Leadership potential: Follower’s capacity to advance one or more levels within the organization
Readiness: Evaluation of a follower’s immediate promotability
Succession planning: Process most organizations use to make leadership potential and readiness decisions
Episodic and informal in small companies
Systematic in large companies
9-box matrices or replacement tables are used to evaluate performance and potential of followers for key positions of leadership
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Figure 10.3: 9-Box Matrix
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Summary
Job satisfaction is the set of attitudes people have about work, their careers, and their lives
Employee engagement is concerned with followers’ specific attitudes about their work, the equipment they use, the impact of their work, recognition and rewards, and their immediate supervisors
Leaders are often asked to provide potential, performance, and readiness ratings for replacement tables and 9-box matrices, two formal techniques organizations use in succession planning
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APPENDICES
Figure 10.2: Herzberg’s Two-Factor Theory, Appendix
The figure shows two ladders placed horizontally. The left end of the first ladder is connected to the right end of the second ladder. The first ladder is labeled hygiene factors. The left end of the first ladder is labeled dissatisfied, and the right end of this ladder is labeled not dissatisfied. The second ladder is labeled motivators. The left end of the second ladder is labeled not satisfied, and the right end of this ladder is labeled satisfied.
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Figure 10.3: 9-Box Matrix, Appendix
The matrix takes the form of a 3 by 3 grid. There is an upward vertical arrow on the left of the grid, labeled potential, and a horizontal arrow, pointing to the left, below the grid, labeled performance. Starting from the top, the labels on the left of each row are labeled high, moderate, and low. Starting from the left, the labels below each column read low, moderate, and high. The information provided in the matrix is as follows:
When performance and potential are low, the follower is said to be a talent risk. When performance is low and potential is moderate, the follower is said to be an inconsistent player. When performance is low and potential is high, the follower is said to be a rough diamond.
When performance is moderate and potential is low, the follower is said to be a solid professional. When performance is moderate and potential is moderate, the follower is said to be a key player. When performance is moderate and potential is high, the follower is said to be a solid future star.
When performance is high and potential is low, the follower is said to be a high professional. When performance is high and potential is moderate, the follower is said to be a current star. When performance is high and potential is high, the follower is said to be a consistent star.
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