International School of Management
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| The leadership of an organization is expected to establish a vision, create parameters to work within, monitor performance, and set the overall “tone” for employees of the organization. A majority of the research that has been done on the topic of leadership highlights the importance of clear communication by leadership to employees, as a key factor in the success or failure of the organization. Effective leaders and management focus on accurate communication processes with employees, and take the time, effort and expense to ensure that the message is understood. There are several important processes involved with effective leader-employee communication. Leaders are responsible for creating the vision, ensuring that employees understand the message, and ensuring that the information is being acted on as expected (Kaplan and Norton 2001). One of the most important factors involved in communication from leaders/managers to employees is the issue of conviction. Leaders and managers must have conviction in their message and show that they too are complying with the content of the communications that they are conveying to employees. This builds trust and loyalty on the part of employees that is in turn, transferred to other factors that are part of overall employee satisfaction.
In addition to being able to effectively communicate with employees, good leaders and managers must also possess other important traits such as: being accountable, the ability to be trusted, approachability, and the ability to set a clear and concise vision for the organization. Of these traits, the research most often points to the issue of trust as being equal to, or more important than open communication. Based on published data, loyalty and the belief in the trustworthiness of organizational leadership are interrelated (Appendix 2). Leaders and management that work to foster trust between them and their employees can have a positive effect on employee retention and the satisfaction of their workforce (Burke and Collison 2004). This hypothesis is easily proven by examining the situations involving the numerous corporate accounting scandals and executive pay debacles that have come to light in the last few years. Although it may seem like common sense, trust in an organizations leadership and management leads to reciprocal trust by employees, and a subsequent increase in employee satisfaction. In order to engender or improve employee satisfaction, good organizational leadership must be able to credibly engage employees at every level, in pursuit of organizational goals. It is not enough for an organization to exhibit leadership at the very top; it is also necessary at every management level throughout the organization. Organizations need to have consistent leaders at all levels in order to be successful. Effective leadership dictates that management talent is constantly identified and developed for future leadership positions within the organization (O’Connor 2004). As part of this leadership development initiative, consistency and unity of message must be maintained. Leadership that includes an understanding of employee expectations, desires and needs is necessary in order to bolster and maintain employee satisfaction. Work Environment The single most important factor contributing to employee satisfaction is the internal quality of the work environment. The respect and appreciation employees derive from their co-workers and employers helps to determine the internal work environment (Stein and Book 2000). The term “work environment” encompasses many different aspects such as: physical work environment, management’s attitude toward employees, relationship with colleagues, and working conditions. Recent research has highlighted the hypothesis that an employee’s work environment can have a dramatic effect on his/her performance and attitude toward work. For example, one’s workspace has traditionally been conceptualized as just a passive host to its user activities. However, it is now recognized that the space workers occupy at work effects patterns of interaction, and can have a noticeable impact on behavior and performance. In addition to the physical attributes of a workplace, are the attitudes of management geared toward the well being of the worker. Does management exhibit respect, empathy, and strive to provide a hostile free work environment for its employees? This section will comprehensively address these different aspects as they relate to their effect on employee satisfaction. An environment is anything that supports employees to be or to perform a certain way. There are many elements related to a working environment. Quite often, people are not even aware of many of the elements that make up a work environment. It stands to reason that everything around employees has some impact on them and how they do what they do. If there are elements of an employee’s work environment that are having a negative effect on them, steps should be taken to remove the elements so that only positive environmental effects remain (Fuimano 2006). This description of ‘environment’ is quite comprehensive and expansive and therefore deserves detailed analysis and a firm understanding by an organization striving to understand its effects on employee satisfaction. The first work environment issue that will be considered here is that of the physical workspace. This issue has become so important in recent years that in 1997, the Center for the Built Environment was created at the University of California at Berkeley. The main mission of the foundation is to conduct research on innovative building technologies that will improve the workplace productivity of commercial buildings. An example of the work that is being done at the CBE can be found with their research into the physical settings of workspaces geared toward teams and collaboration. Team workspace design is done in order to specifically support the collaborative work of a group of employees. Although the designs allow for private workspaces, there are provisions made for open collaborative workspaces that are conducive to teamwork (Arens 2002). Many companies today are expending greater effort to ensure that productive, conducive work environments exist for the productivity and satisfaction of their employees. Rather recently, organizations have come to the realization that an employee’s physical work environment can have a tremendous effect on their productivity and overall satisfaction. Aspects of this realization relate to issues such as space, lighting, sound, and ergonomically correct design. People spend 90 percent of their time indoors, and much of that time is spent at work. Studies have shown that up to 30 percent of U.S. office workers suffer from health problems caused by sick-building syndrome. Organizations can create long-term value in not only the facilities themselves, but also for the employees of the organization. Organizations can attempt to understand the environmental implications for employee productivity and satisfaction if they are considered essential elements of their business processes (Obenreder 2004). In addition to the aspect of employee satisfaction, the issue has become such an economic factor that many insurance companies require organizations to have workplace surveys and audits done on an annual basis. For example, Maine Savings, a financial services firm in Hampden, Maine with 150 employees, is required to have a third party workplace audit review annually as part of the yearly renewal process for their disability insurance policy. As part of this audit, employees are surveyed and interviewed, and an inspection of the physical work environment is conducted. The major focus of designing an appealing physical workplace for employees is that it is the basis for all other elements that play into employee satisfaction. Because appealing and comfortable workspaces improve employee attitudes and overall employee satisfaction, both employees and employers can benefit from a well-designed work area (Herz 2005). Therefore, when employees are satisfied with their physical work environments, they will be more productive, tend to be more loyal, and be more satisfied with their work situation. The research indicates that developing physical environments where employees can feel comfortable, accessible to both management and coworkers, and have input into their work environment, are more satisfied with their jobs. An issue that must be highlighted while discussing physical work environments is the issue of collaboration with coworkers. Although collaboration is defined as ‘working together’, effective collaboration entails both individual focused tasks and interactive group work. Organizations that wish to foster an atmosphere of collaboration and teamwork should ensure that the appropriate space, furnishings, and technologies exist in order to properly facilitate these activities (Heerwagen 2004). In addition to the physical aspects of one’s work environment, there are other important factors such as flexibility, a hostile free work environment, and telecommuting that have an effect on employee satisfaction. This next section will focus on flexible work environments, and the resultant benefits and effects on employee satisfaction. Like the other characteristics of the effective workplace, the flexible workplace calls for new ways of managing and working. Flexibility is often associated with the ability to easily move from one situation to another. Flexibility in the workplace however, is a strategy that is being used to increase productivity by leveraging employee schedules and technology. Managers and employees that are involved in flextime strategies must be able to work more autonomously, but yet assume more responsibility (Bond, Galinsky and Hill 2002). One of the more popular strategies today is the implementation of a flextime system, which engenders both employee accolade, as well as incentives from particular state governments. For example, flextime schedules are promoted by the state government in California as a way to reduce peak time traffic problems. Traditional flextime arrangements allow the employee to select their starting and ending work times, within a range of acceptable and established core hours. For example, if the core hours at an organization are established as 10 a.m. to 2 p.m., an employee may choose to work 5 a.m. to 2 p.m. or 10 a.m. to 7 p.m. As long as the employee is present during the established “core” hours, they are free to make their own schedule. Some employees may have to work the same hours once they are established, but more and more employees are being allowed to change their hours on a daily basis, as necessary. Statistics show that 43 percent of U.S. employees now have access to traditional flextime, up from 29 percent in 1992 (Bond). In terms of gender differentiation, women are more likely to use flextime benefits; however, the majority of men (68%) and the majority of non-parents (70%) use flextime when they have it. These statistics indicate the extent to which flextime adds to employee fulfillment and satisfaction (Appendix 3). Two other flextime strategies that should be mentioned here are compressed workweeks, and reduced time work programs. A compressed workweek strategy allows employees the opportunity to work their allotted weekly hours over fewer days. For instance, an employee could work 10 hours per day over 4 days rather than 8 hours per day over 5 days. A reduced time strategy allows certain employees the opportunity to work a part-time, flexible schedule throughout the week, as needed. This strategy is especially important for America’s aging “baby-boomer” workforce. With the impending worker shortages that are forecast to take place in the next five years, strategies that can be used to retain an older, more versatile workforce will be needed (Bond). The issue of impending worker shortages, retention, and overall employee satisfaction make flextime strategies an important employment consideration. An analysis of employee satisfaction in the workplace would be incomplete without a discussion about the effects of hostile work environments. Hostile work environments are like a cancer that can eat through the core of productivity and employee satisfaction faster and more devastating than any other work associated instance. Employers seek to prevent events that may lead to a hostile work environment, as they can be extremely disruptive to the work force. In addition to the potentially devastating financial ramifications of the existence of a hostile work environment, there is the potentially lasting impact on employee morale and satisfaction. There are many circumstances that may constitute what is considered to be a hostile work environment. For the most part, they are predefined by law or organizational policy, but may have to be examined on a case-by-case basis (Parham 2003). Management must strive to always be aware of toxic relationships, tense behavior between employees, and negative overtones in the work environment. By creating positive environments that nurture success, employers are exhibiting to their employees a commitment to achieving an atmosphere that will engender employee satisfaction in the workplace. Employee Training/Programs A common mistake made by many organizations is the failure to adequately invest in the continued training of their employees after they are hired. One of the biggest factors in employee satisfaction/loyalty levels is the amount of training and development companies provide. The research on this topic is clear that employees want to grow, be given the opportunity to identify a desired career, and be given an opportunity to pursue a chosen career path by the organization (Sussman 2006). As a result, the training and development of employees is an essential part of their satisfaction and longevity and should be made a priority of the organization. Continued training and programs not only help to bolster employee satisfaction, but also produce tangent benefits for the organization. Training initiatives should be well planned, funded, and designed to meet organizational goals. This section will consider the effects of well- designed, comprehensive training programs. Included in this analysis will be the effects of training on employees, benefits of employee training to the organization, types of training programs, and the required commitment needed for a successful training and development program. What is the definition of an effective training program? The answer is different depending on the type, size and focus of the particular business. Some organizations still utilize outside training consultants that are sporadically used to deliver slide presentations at a discount rate. The effectiveness of these training sessions is questionable, but employees are generally only temporarily enlightened about a training topic (Laff 2006). An issue that exacerbates the lack of pertinent training is the scarcity of funds committed to training endeavors. Organizations must realize that the quality of their employees is directly related to the level of training and development they receive. In order to accomplish this, training should be an integral part of the strategic plan, and be adequately funded in order to achieve the desired result. Employees, in most cases, are the largest investment a company will ever make. A commitment to investing in their training and development is a prudent strategic move that will not only enhance productivity, but also increase employee satisfaction. There are many specific reasons for a company to focus on the training and development of its employees. Among these reasons are: creating qualified replacements for departing employees, enhancing the organizations ability to adopt new technologies/processes, developing informed/knowledgeable teams, and the ability to ensure trained and experienced employees for potential growth and expansion. There are also many different types of training programs and methods, but all of them should address the following considerations: what are the organizational objectives (strategic plan)? What are the specific training needs? What are the training objectives? Who are the candidates to be trained? What are the methods and modes of training? How to evaluate the candidates, conduct the training, and evaluate the training process. Some organizations rely on outsourcing these requirements, while other, typically larger organizations, create their own in house training programs; in some cases branding them as “corporate universities.” Companies have access to various outside training resources such as webinars, canned training products, and outside training consultants. Although these resources may prove to provide many different options and viewpoints, they lack the specificity that a well-designed in-house training program would have (Carolina 2004). In-house, comprehensive-training programs can be very effective but require commitment and funding. The first step an organization must take toward administering a worthwhile training program is to assess the organizational objectives for the training to be done. In many cases, the majority of ongoing training may be associated with reinforcing the organization’s strategic goals and vision. The primary goal of many employee training/development programs is to communicate the vision of the organization, help workers understand the corporate values and culture, and show employees at every level how they can help the company succeed. Many of these types of training programs help employees become indoctrinated to the organization’s corporate culture, which helps them better understand and support the strategic initiatives of the company. Although specific technical training is necessary and generally the focus of a corporate training program, being able to instill and reinforce corporate culture and a strategic vision to employees can prove to be invaluable (Shelton 2001). Whatever the objective of the training, it should be documented and agreed to by the leadership of the organization. After assessing the organizational objectives in relation to training, the next step is to establish the training objectives of the organization. There are several different ways to go about establishing the training objectives of an organization, but the method should take into consideration the three major human resource areas: the organization as a whole, the job characteristics, and the needs of the individual. In order to begin this process, a comprehensive assessment of what tasks are needed to be accomplished in the organization, by whom, and what are the necessary skills for the tasks. This process should result in an established foundation for which future training and benchmarking can be done. There should be short term, medium range and long term training goals established as part of the strategic plan. Training plans and objectives should then be tailored to specific jobs that are then filled with the most qualified candidates possessing the requisite traits that are best suited for a particular position. Selecting the appropriate employees for training is a crucial step in the organizations training process. Because of the time and financial commitments necessary for an effective training program, being able to efficiently target the required training for the appropriate individuals will allow the organization to work more effectively and efficiently. Training programs should be designed to consider the ability of the employee to learn the material and to use it effectively, and to make the most efficient use of resources possible. Training can be a valuable source of motivation for an organization’s employees, if administered correctly. In order to ensure the maximum effectiveness of any training program, the candidates for training must be chosen correctly and the training must be pertinent and add value for their particular employment situation (Carolina 2004). One of the most important elements of the training process, that includes a myriad of options, is the method of training. Especially in today’s high-tech, automated world, many different training methods exist as alternatives to companies. Some of the more popular methods include: on-the-job training (OTJ), lectures, video study, seminars, webinars, distance education, and a variety of others. With the constant upgrades and improvements in technology, previously unheard of methods of training are beginning to dominate the corporate training realm. For example, one of the hottest new trends in corporate training is the use of the MP3 player as a training delivery device. Organizations are now able to take advantage of the efficient and cost effective use of technology as a training tool. Specifically, the use of MP3 devices that can store large amounts of data and are convenient to use as training tools is exploding. According to a recent report from eMarketer, an Internet research group based in New York, the number of podcast users grew to 11.4 million last year, up from 800,000 in 2004, and could reach about 55 million by 2010 (Agnvall 2006). As long as the method is effective and accomplishes the intended training outcome, it should be considered. The next consideration is to plan the training administration. Training administration is the coordination of programs, facilities, employees, equipment, supplies, and time frame for the training to be conducted. For the training process to be effective, employees must be satisfied with their training experience. This process entails ensuring that employees have all of the time, supplies and comfort necessary to understand and properly digest the information that they are presented with. Employee satisfaction is not only a derivative of the information received, but also the training process as a whole. A well-managed training administration program can ensure that all of the elements necessary for an effective training program are present and functioning as planned. One of the final steps, but also one of the most important ones necessary for an effective training program, is the ability to accurately assess and evaluate the training conducted. Training evaluation should not be considered a one time, or static event during the training process. It should be constant and dynamic in nature, with established goals and outcomes. As was previously noted, benchmarks should be established at the outset of the training process, with target milestones as goals. Both employees and the training process should be evaluated comprehensively in order to accurately determine the effectiveness of the training conducted and that the employee received the desired information. Any deviations from the desired results should be noted and corrected in a timely fashion. Timely evaluation is critical in any training program, as it prevents a prolonged deviation from organizational goals. Research in the area of corporate training has established that companies with strong training programs have less employee turnover, more productive employees, and consequently, are more profitable. It is reported that in 2004 U.S. based corporations invested more than $50 billion in training initiatives. As with any other large business investment, there should be a rational expectation of a positive return on investment dollars for this training. In order to realize a positive return on training investments, organizations should ensure that the training being given is properly aligned with organizational goals and strategic initiatives (Clark and Kwinn 2005). As this section has highlighted, the training function is an important and essential part of employee development, and subsequent employee satisfaction. Employee Development & Leadership Planning Closely related to the topic of training, but different enough to deserve its own analysis, is the subject of employee development. Employee development typically encompasses two main areas: personal development and professional development, and is more long range than traditional training. Training typically refers to providing the skill necessary to effectively do one’s current job, or deal with one’s current situation. Career development encompasses a broader set of training topics that have to do with one’s overall professional development and career planning. Professional development skills, although typically outside the scope of an employer’s job description, provide the skills and abilities necessary for the growth and maturation necessary for leadership positions (Chapter 11 2006). This section of the paper will focus on the importance and relevance of employee development as it relates to employee satisfaction. 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