International School of Management
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The mission statement is a crucial element in the strategic planning of a business organization. Creating mission statements is one of the first actions an organization should take, but may be adjusted over time as the need arises. The mission statement should be the foundation for the development and implementation of the organization’s business strategies (Cardani 2000). Because the mission statement is considered the foundation for the rest of the organization’s goal setting processes, allowing employee input and involvement helps to engender a feeling of loyalty and trust among employees. The next elements of goal setting that would benefit from employee involvement are objectives and strategy. The objectives of an organization typically arise out of the mission statement. The objective should be “what” the company will do to achieve its goals. For example, “we will grow our customer base through superior service.” Goals would then naturally flow from attempting to meet this objective. Once an organization has determined its overall objectives, it must then develop a strategy, a general course for meeting the objectives, taking into account the current situation and available resources. Developing an overall strategy is quite often accomplished before goal setting begins (Davis 2006). Employees all come to an organization with their own mission, objectives, strategies, and goals. Allowing them to actively participate in the goal setting process for the company that they work for creates a lasting loyalty and instills a sense of process ownership. These feelings translate into satisfied, productive employees that are not only willing, but also wanting to positively contribute to the success of the organization. Communicating with Employees The art of communication is a vital component of employee satisfaction and engagement. Without workplace communication, nothing would be accomplished. Instructions could not be given; equipment and supplies could not be ordered; progress could not be measured; and services could not be delivered to customers. The five functions of management: planning, organizing, staffing, leading, and controlling, are all dependent on communication. Surveys conducted with highly successful managers consistently highlight the benefits of effective communication (Slagle 2006). There are many different methods of communicating in the workplace that include: face-to-face meetings, staff meetings, small group meetings, department meetings, management forum meetings, walkabouts, telephone conversations, mission statements, newsletters, bulletin boards, e-mail, and intranets, just to name a few. All other components of this analysis would be impossible to implement without communication. For that reason, this section will be concerned with employee communication in the workplace, and the many considerations involved with effectively communicating at work. Employees communicate with each other and management in many different ways, as well as being communicated to by management in many different ways. Employee communication is a very powerful factor in the level of employee satisfaction that workers in an organization have. From the perspective of the employee, communication from management is a reaffirmation of what the leadership believes and stands for. For this reason, the effectiveness and efficiency of communication in an organization is often used as a barometer to gauge the performance and overall effectiveness of an organization. In an article titled, Interpersonal Style and Corporate Climate: Communication Revisited, Jay Hall (1980) states in regard to the importance of communication: “High on the diagnostic checklist of corporate health is communication. The ease with which information flows downward, upward, and horizontally is often a major internal indicant of organizational effectiveness; who listens to whom may reveal the real as opposed to the apparent authority structure in a firm; and the proportion of people who consistently fail to get the message is frequently taken as a statistical baseline for predicting the efficiency with which plans will be translated into actions (p.216).” This statement highlights the importance of effective communication in the workplace, and the potential negative ramifications of errant or misguided communication. Communication is traditionally thought to have three main elements: a message, a sender, and a receiver. However, this is a stark over simplification of the process involved in workplace communications. Each of these stated elements has attached to it, several factors that must be considered in the process of communicating. The first to be analyzed here is the element of the message. Some of the more important considerations in regard to the message are: clarity, purpose, audience, meaning, complexity, and pertinence. Vague words or phrases may lead to ineffective results or no reaction at all from the intended recipient. Different words have different meanings to different people, depending on their age, economic status, position within the company, or cultural background. Simplicity and understandability are important factors to remember when attempting to communicate in the work environment. The more words and punctuation there is in a sentence, the more likely it is to be confusing to an employee. Precision and clarity are keys to delivering the intended message and invoking the intended outcome. The second element of communication is the sender, or source of the message. The sender must be known to, or have relevance to the recipient in order for the message to carry any importance in most cases. This element is closely related to the amount of communication an employee is subject to in the workplace. In many organizations, mass communications or cross-departmental communications are done everyday that do not have particular relevance to everyone they are communicated to. This issue creates two problems; first, it increases the amount of information an employee is subject to and second, the information may not be pertinent to all those that read it. This situation has the effect of employees, over time, becoming immune to certain communications. It may also result in information overload, which may have an adverse effect on future employee communication. Employees generally prefer to hear from their direct supervisor, but in some cases, mass communication may be appropriate. As long as the sender of the information is legitimate, known, and relevant, employees will be more willing to internalize the message being sent. The third element of communication is the receiver, which is closely related to the element of the sender in the regard that the receiver must be relevant and known. A relative message that is sent by a relevant sender, but is sent to an irrelevant recipient, has no effect and is wasted communication. If the receiver of the communication is relevant and is the intended audience, the message must be understandable to the employee. This concept goes back to the element of the message itself. If it contains information that is valuable and pertinent to the receiver, it will be received much better. Two important factors involved in the communication process that involve the receiver, and are used to ensure a successful communications loop, are follow-up and feedback. The sender should follow-up with the receiver to see whether or not the receiver has interpreted the meaning of the message as it was intended. To help facilitate this process, the receiver, in turn, should provide adequate feedback to the sender of the information that gives an indication that they received the information and understand its intended meaning. This process helps to close the continuous communications loop and ensure that the communication process was successful and effective. This next section will consider communications in the traditional work environment, expectations of employees, and management’s responsibility in regard to effective communication to employees. Many supervisors and managers already know and understand how important it is to be effective communicator’s with employees. Communications in the workplace is not just about communicating directives; it is also concerned with building relationships, instilling trust, promoting mutual understanding, and providing a tool for employee involvement. Like many facets of an employee’s job, communication can be taught, and effective organizations ensure that it is. In most cases, the communication style of an organization conveys the values and culture of that organization. Communication is not only an important part of each internal department, it is affected and shaped by the culture of a workplace and therefore demonstrates and transmits the characteristics of a workplace culture. Communication patterns within an organization typically follow the hierarchal model that exists, such as a command and control management style. If an organization’s management exhibits an open, participative environment that is receptive to employee involvement, so too will be the communication style of the overall organization (Communication 2006). Just like the planned direction of a company, so too should organizational communications have a strategy that is conveyed and understood by all members of the organization. Many organizations fail to recognize the importance of highlighting internal communications, but rather choose to assume that employees should automatically march in lock step with organizational priorities, strategies and initiatives. The research on the subject indicates that companies that focus on improving the effectiveness of their internal communications experience increased productivity, employee satisfaction, and market value. Communication in progressive organizations reflects a view of the relationship with its workers. Management provides information to support participation of the workforce in decision-making. Collaborative employee-management communication is designed for the management and employees of an organization to mutually understand the strategies, goals, and initiatives that exist. It also allows all of the parties involved in these goals and initiatives to understand their roles, as well as expectations, in relation to meeting the objectives to be attained (Wilkins 1989). A major communications issue that many organizations face is the issue of trust. There is a predominate school of thought that feels employees should only hear good news, or information that has been slanted to sound good. This kind of perspective can lead to a mistrust in management by employees and lead to degrading communications in the workplace. Effective employee communication should be honest and should address issues in a substantive manner. The goal of communication should be to facilitate the bilateral flow of information that should improve the employees’ commitment to the organization’s goals and objectives. Leadership must also be open to feedback. Employees need to believe they have a voice in the company and that their input matters. The management of an organization must do more than talk about bilateral communication; they must prove that it exists within the organization (Varelas 2005). If employees see that the management of an organization is committed to a communications process that is based on respect, dignity, trust, and shared ideas, they will participate in the communications process openly and honestly. This paper previously mentioned that an organization should have a strategy for internal communications, and that strategy should be shared with all employees. Organizations should delineate the communications expectations to employees and establish clear guidelines for communicating in the workplace. The communications strategy should be developed in order to encourage open two-way communication and also facilitate the exchange of information necessary to conduct business. Having a strategy in place and everyone in the organization understanding it, is good management and helps to promote effective relationships within the organization. Some of the early research on this topic by Blake and Mouton (1968) revealed that where management is effective and relationships are sound, there are fewer problems with communication (Blake and Mouton 1968). The starting point for developing internal organizational communication processes that build trust and credibility is to establish a set of working principles as the foundation. Here are some examples of such principles that could guide communication in an organization trying to operate on the basis of trust and credibility:
The issue of communication in the workforce is one of great breadth and size that covers many different sub topics. Certain advances in technology have helped modern communication, but at the same time, have created other issues that must be considered when examining the communication process. One of the positives of the introduction of technology to the communications process is the ability to communicate with many employees quickly, without regard for geographic location. An issue that exists in communicating with employees electronically is that most senders of information expect that when a message has been sent, and subsequently received, that it has been understood as intended. J. Douglas Brown (1973) said: “The complex of technical devices which have come to facilitate the process of communication in larger organizations tends to divert attention from the essential truth that effective communication is more a matter of minds than of machines” (Brown 1973). It is very easy to get lost in the technological advances that are related to communication. However, it is important for organizations to concentrate on effective communication and not get distracted by the technology itself (Harshman and Harshman 1999). As this analysis indicates, effective organizational communication plays a major role in employee satisfaction. Although this paper deals with specific components of the communications process in the workplace, there are broader, general techniques that managers can use to ensure open communication in the workplace. The following is a list of ten general tips to consider when addressing communication in the workplace (Flaherty):
Increase the frequency of your communication, particularly during periods of rapid organizational change. Tell your employees what you know, even if you preface it with “Based on what I know today…but it could change tomorrow.” Telling employees what you know, even if it may be subject to change, helps build trust. On the other hand, withholding information erodes trust levels between management and employees.
Whenever possible, keep your office door open. In addition, make sure your body language also tells employees that you have an open door policy. Crossing your arms, sighing over interruptions, and not looking at the speaker all say that you may be accessible, but not approachable.
Keep your employees updated on your schedule. Knowing your schedule will help them prioritize their work and allow them to make better decisions relevant to supporting you. Knowing their schedules will help you understand their current pressures.
On a regular basis, ask your employees, “What do you need from me?” Doing so gives employees the opportunity to update you on projects. It also prompts you to provide the information needed to keep those projects on schedule.
If you are away from the office, touch base with your support team on a regular basis. Doing so allows you to respond quickly to messages and troubleshoot potential issues that may have surfaced in your absence. It also says to your employees, indirectly, “I care enough to check in with you when I’m gone.”
Keep employees informed about management decisions, goals, and direction. Allow employees time to question issues that impact them. Have employees update one another on the status of their projects. Scheduling short, well-planned departmental meetings on an ongoing basis will not only keep employees informed, but also boost team effectiveness.
Keep an anecdotal file for each employee. Doing so will help you stay informed and current about that particular employee. A simple note saying “Janice said that she plans on taking a computer course in the fall” will not only help you remember the fact, but impress Janice when you bring the point up in later conversation.
Want to make annual reviews less dreaded for both manager and employee? Conduct quarterly reviews. Doing so allows the employee time throughout the year to address performance issues. Meeting with an employee on a quarterly basis also conveys to an employee, “Your success is important to me.”
Conflict is alive and well in most organizations. What differs from organization to organization is the way conflict is handled. Healthy organizations address conflict. We recently ran across the term “carefrontation.” It takes courage and guts to honestly communicate the real issues to people. When you do not honestly discuss but instead sidestep the tough issues, employees may feel that you do not care. If you do care, you will confront people with compassion. When you honestly communicate, even the tough issues, people trust you because they know you really value them.
Communication is an art, not a science. You can easily learn principles related to communication, but to become a master, you must practice. Monet was not a great artist the first time he put a brush to canvas. It took years of practice! With practice and commitment to effectively communicating with employees, you will eventually become known as a great boss. These tips are not meant to be an over simplification of the communications process in the workplace, but only as indicators for the foundation of an effective workplace communications strategy that will enhance employee satisfaction. An often over looked aspect of effective communication is listening. Listening is just as important as speaking, when it comes to communication. The supervisor who is a good listener is more likely to have employees who help identify and solve work related problems. It is important for managers to be aware of barriers that exist when receiving or listening to messages, just as they must do when sending messages (Slagle 2006). High performing organizations provide channels for upward communication and listen to what employees say. A common factor revealed at many high-performing organizations is the very effective channels of communication that exist from the employees up to management. In these organizations, employees feel that their messages are heard by management and quite often used in the decision making process (MacGregor 2006). Employees have an intrinsic need to know that their input counts and that when they attempt to communicate with management, the message is received and understood. All staff, no matter their length of tenure should have frequent opportunities to clarify goals of their work and give and receive feedback about how they perform their jobs. It does not matter what the content of the message may be, as long as workers feel that they can effectively and openly communicate with the management of the organization (Communications Strategy 2006). Employee Satisfaction and Teamwork Only motivated, committed workers can successfully compete in the global marketplace. Working smarter can only be achieved with an involved workforce. Teamwork has been proven to improve many of the factors related to employee satisfaction that includes increased motivation and productivity (Harper 1994). Teamwork is now being used as a behavioral modification tool, used to increase employee satisfaction and motivate groups of employees toward organizational goals and objectives (Morley and Heraty 1995). The assumption behind teamwork is to upgrade autonomy that is realized in terms of identifying the best way of practicing a job to achieve the highest performance through continuous search of employees for alternative ways of work practices. Increased autonomy is expected to foster self-fulfillment and make jobs significant (Ross 1999). Teamwork is often viewed as an efficient and motivating method of coordinating and condensing the individual contributions of individuals into one cohesive outcome. In this regard, teamwork is viewed as a motivational tool for the purpose of enhancing individual input and involvement through a group of employees working together in team environments (Rodwell et al. 1998). Teamwork is not a new concept. Americans have cheered on their teams for as long as there have been teams. However, the concept of “teams” has tended to be relegated to sports and media, rather than in business environments (Wellins et al. 1991). The sports analogy is often used to cite the benefits of teamwork in organizations. The idea being that a true team is a group of cohesive equals with a common goal. The team functions as an organic whole where the group truly is greater than the sum of its parts. The term “self-directed work teams” has been used since the 1950’s to describe teams of employees working together toward one common goal. There is no universally accepted way of designing one of these teams because the formation process should be participative, and will probably differ from organization to organization. In the “typical” work environment, a self-directed work team is an intact group of employees who are responsible for a “whole” work process or segment that delivers a product or service to an internal or external customer. In essence, individuals work as an autonomous team that plan and control their work in order to achieve specified organizational goals and objectives (Wellins, et al. 1991). Extensive research in the field of employee satisfaction has supported the hypothesis that employees derive pleasure and satisfaction from socializing with their co-workers, with the greatest source of satisfaction coming as a member of an “on the job” team. That is a tremendous source of morale for employees. In fact, a good deal of the interaction while socializing is work related. Teamwork contributes to an environment of socializing between employees, in regard to work matters as well as non-work related matters. This socializing contributes to a solidifying of relationships between employees. This social interaction and team environment leads to the establishment of an effective and cohesive work community (Sirota et al. 2005). Although teamwork has been shown to improve employee satisfaction and worker productivity, it is often not managed well or even promoted by some organizations. Teamwork requires dedication and attention from management in order to be an effective morale and production tool. Teamwork is an important factor to manage well. Teamwork requires constant managerial attention and knowledge of the important elements associated with effective teamwork. Managers should understand the personalities involved in teams, the forming process, and the factors associated with successful team formation (Special 2006). Teamwork carries with it the connotation of collective thought and action. Ironically, the research that has been done on teamwork shows that the process actually encourages autonomy and personal flexibility. Due to the continuous improvement principle, teamwork is expected to give rise to increased involvement in decision-making and greater responsibility that requires a wide array of skill base leading to higher complexity and autonomy. Several researchers have found that employees realize greater job satisfaction and autonomy when able to work in teams (Ascigil 2003). Therefore, an organization that promotes and encourages teamwork, and that provides an environment receptive to teamwork, stands to improve both employee satisfaction and productivity. It is claimed that the experiences of employees about team-based initiatives are shaped by multiple factors. Organizational behavior research has shown that management practices give rise to particular job attitudes on the part of employees. It has been found that the participation associated with teamwork leads to positive effects on job satisfaction and to the commitment level of employees (Boshoff and Mels 1995). Thus far, this section has focused on the positive attributes and benefits that stem from effective teamwork in an organization. There are however, negative effects of ineffective teamwork, or dissatisfied members of a team. When a member of the team experiences problems or worse yet, causes problems for other members of the team, the affected employee is not the only one that suffers. In fact, the issue may result in a breakdown of team cohesiveness and productivity. In fighting by team members cannot only cause team ineffectiveness, but also lead to individual mistrust and paranoia (Sirota et al. 2005). Because teams are a composition of individuals, they present many unique problems that must be addressed in a timely manner by management, as well as by the team members themselves. Quite often teams experience problems during the formation and norming stages of team development. Going in circles is a perfectly natural evolutionary stage and one that is important for the development of the group. Teams must go through different stages of formation in order to achieve autonomy as a group element. It is necessary for teams to experience tension and conflict on its way to becoming an effective entity. Groups that recognize and deal with conflict early on are much better equipped to handle issues that may arise later in the process (Wellins et al. 1991). In addition to the employee satisfaction benefits that an organization is able to reap as a result of effective teamwork, there are other tangible benefits as well. These include employee empowerment, trust in management, and an engendered feeling of organizational involvement. Employee involvement practices have been one of the techniques extensively used for improvement purposes by pioneering organizations. Among those initiatives, redesign of work combined with job enrichment are two that are widely aiming at quality increases by creating jobs that entail autonomy and feedback. All of which are accomplished by effectively employing a teamwork strategy (Hackman and Oldham 1980). As was previously stated, management has an important role in ensuring the success and intended outcome of teamwork in the organization. Management needs to fully understand the teamwork concept and realize that unless management behaves differently, nothing will change. Management needs to give the work-teams clear direction on what needs to be accomplished and autonomy and control over how they do the tasks. Teams should be given clear guidelines and understand the parameters that they are empowered to work within (Harper and Harper 1994). With the proper guidance, team members learn to act more like managers that are part of a larger organizational focus. Both management and the employees in the team can learn from the teaming process while contributing to the accomplishment of organizational objectives (Wellins et al. 1991). Employee Empowerment Empowerment in the workplace is an often-misunderstood concept. Employee empowerment is a term that many managers and organizations think they understand, but few actually do, and even fewer really put into practice. Many managers feel that by empowering employees, they relinquish the responsibility to lead and control the organization. This is not the case. Empowerment is actually a culmination of many of the ideas and tenets of employee satisfaction that have been discussed previously in this paper. For an organization to practice and foster employee empowerment, the management must trust and communicate with employees (Fig. 5). The single most important element of employee empowerment is communication. Consistent communication from management in regard to every facet of the organization empowers the workforce and engenders a feeling in them as active participants in the success of the company (Adams 2006). Employee empowerment has been described and defined in many ways but is generally accepted as: the process of enabling an employee to think, behave, act, react, and control their work in more autonomous ways, as to be in control of one’s own destiny. Effective employee empowerment not only has positive implications for employee satisfaction, but also many other organizational facets, such as customer service and retention. This section of the paper will consider the implications of employee empowerment as a factor in employee satisfaction. Figure 5: Leadership for Empowerment Source: Nova Southeastern University 
A great deal of managerial discussion has centered on the need to empower employees and give them a sense of ownership and pride in their work. Options have included flattening organizational pyramids and using team management. Many companies actually set out to increase employee empowerment by attempting to increase the level of entrepreneurship within the company (Denton 2004). Traditionally, entrepreneurship has been thought of as a concept of independence and self-direction, a concept that is diametrically opposed to the process of a synergistic organization. However, the concept of entrepreneurship has been employed in successful organizations and is often referred to as “corporate entrepreneurship.” Corporate entrepreneurship focuses on ways to encourage entrepreneurial activities in corporations, and seeks to identify relevant factors associated with corporations that exhibit characteristics most often associated with the individual entrepreneur (Gartner 1988). The concept of corporate entrepreneurship is becoming more important to organizations everywhere as the need increases to retain good employees, while at the same time needing to constantly compete and innovate. Empowerment and entrepreneurship can be synonymous terms when trying to prompt employees to operate with more autonomy, take action, and ultimately control their own destiny. This motivational action often leads to employees feeling more independent and in control of their work situation, which in turn, is translated into greater effort and improved work productivity (Miecevole 2006). The most important factor in effective employee empowerment is bilateral communication. Employee surveys and evaluations show repeatedly that empowerment and communication rate highest in regard to employee satisfaction in an organization (Appendix 4). Companies committed to employee empowerment provide more information in greater detail than the average company. As previously mentioned, a key to employee empowerment is effective and honest communication. It requires that management increase the amount of time they devote to actively communicating with employees, as well as how they go about doing it (Hildula 1996). Communicating and sharing information accomplishes several objectives that are not only important for the empowerment process, but also for overall employee satisfaction with the organization. The sharing of information lets people understand the current organizational situation in clear terms. It begins to build trust throughout the organization and breaks down traditional hierarchical thinking. Information leads to employees accepting more responsibility, making informed decisions, and having an understanding of the goals and objectives of the organization. Information ultimately empowers employees to act as stakeholders of the organization (Blanchard 1996). It is also important to remember that communication must work both ways. That is to say, employees must be allowed to have a say in issues that they are required to work with. This includes the opportunity to offer ideas and solutions to situations that may confront the organization. An important factor to consider when discussing idea generation is the treatment of the people involved in the process. It is vital that the participants receive feedback and feel that they have ownership in the process. “People must know that their ideas will be listened to and, if they have merit, acted upon. If they do, it is possible to mobilize individual creativity on a very broad scale” (Champy 1995). Making sure the participants are treated fairly and as equal partners in the process is a key to successful innovation and creativity. Everyone involved in the process must believe that anything is possible and that exploring new paradigms and ways of thinking are the goals. Fear of failure and retribution for unsuccessful ventures cannot be presented as impediments to the process. “Punishing the innovator when an innovation fails is the best way to ensure that no one ever attempts to be innovative” (Hammer and Champy 1993). One last note about the people involved in the process is in regard to the hiring of the people themselves. Far too often we hire people in our own image. By doing this, we inadvertently create a uniform, standard line of thinking and methodology. The most efficient way to introduce creativity and innovation into an organization is by hiring creative and innovative people. In order to effectively do this, the leadership of an organization must be willing to step outside of their comfort zone and hire people that may be different from themselves (Freiberg 2004). Employee empowerment requires a strong and lasting commitment from an organization’s management. A pervasive misconception in relation to employee empowerment is that it is a top down desire. Employee empowerment comes from the individual. That is not to say that management ceases to have the responsibility to lead the group and is not responsible for performance. In fact, companies that seek to empower employees demand stronger leadership and accountability. This strong leadership and accountability must start at the very top and permeate all levels of management. Once the organization becomes a cohesive, understanding team, the real benefits of employee empowerment can then be realized (Butcher 2006). It is up to the management of an organization to lead the empowerment process, even though it is most likely the employees that are advocating the issue. Creating and stimulating employee empowerment in established organizations is not an expeditious proposition. It is an easier proposition in newer organizations where the leadership has made empowerment of its employees a priority from the beginning. For this reason, it is incumbent on the leadership of established organizations to demonstrate the benefits and expected outcomes of employee motivation initiatives to employees (Fox 1998). Employee empowerment is an acknowledgment by an organization’s management that they realize that their employees have a lot to offer. Employees derive satisfaction from many aspects of employee empowerment endeavors, not the least of which are the corresponding benefits that allow an organization to become more competitive, profitable, and innovative. An organization can realize many benefits from learning how to properly empower its employees; not all of which are strictly monetary. Empowered employees can have many positive effects on an organization’s performance as a result of the innovation that comes with empowerment. Empowered employees that operate more independently tend to be more creative and innovative, thereby benefiting the organization in possible other ways (Hayes 2003). Traditional top down management tends to stifle worker productivity, create barriers to innovative solutions, and adversely affect employee satisfaction. Employee empowerment utilizes a participatory management style that requires a great deal of employee involvement to be successful. The concept of employee empowerment differs from traditional workplace democratization initiatives because of the extent to which employees have control over the outcomes of their own performance. (Dimitriades 2001). The government has also researched the benefits of empowering employees. In a 2005 review of 100 workplace studies, the U.S. Department of Labor examined the link between progressive employment practices and improved bottom line results. The Department found that “a positive correlation exists between motivating and empowering employees and significant improvements in productivity, employee satisfaction and financial performance” (Clark 2006). Many employees that are not empowered by their organizations feel underutilized, micro-managed, and helpless to make positive changes. These feelings and attitudes not only adversely affect the employee, but also the organization. As has been stated before, research has shown that empowered employees improve organizational performance and possess higher rates of satisfaction. A major competitive advantage that stems from an organization empowering its employees is the universal understanding and support of the organization’s goals and corporate strategy (Vinas 2001). A good lens by which to examine the employee and organizational benefits of employee empowerment is through the customers of the organization. It is a well-known fact that companies who are truly successful in delivering exceptional customer service have several traits in common, one of which is employee empowerment. This empowerment is exhibited by employees that are able to make on the spot decisions for the benefit of customer service delivery (Healey 2006). There are now many companies that tout employee empowerment as a selling point to prospective customers. They advertise the fact that the employee empowerment philosophy allows their employees several important capabilities, including the ability to respond intelligently and independently to customer needs, and make critical decisions on-the-spot. Because employee empowerment leads to more satisfied and motivated employees, organizations are able to deliver higher quality, lasting customer service (Catapult 2006). Since our society has become a “service” related society, with a service-based economy, empowering employees to make customer service related decisions is imperative to organizational success. It is necessary for customer service employees to exercise a higher level of personal judgment than their manufacturing counterparts because of their proximity to the customer service delivery experience (Huq and Stole 1998). Using this reasoning, one can easily see that empowering employees to make customer service related decisions will result in the satisfaction of the customer, employee, and subsequently, the organization. In addition to the employee, organizational and customer benefits already cited here, employee empowerment holds added benefits and outcomes for employees. One of the measures of success for any organization is the personal growth and development of its employees. Empowerment allows employees the opportunity to build on their current skill set. Being empowered gives them the ability to use all the skills that they already possess as well as gain new skills and experiences. Being able to practice these skills and exercise their creativity and innovation will help them improve upon future performance (Hayes 2003). When encouraged and managed properly, empowerment can be a great solution for many organizational problems. Once organizations and employees are able to understand and practice employee empowerment, they can then begin to recognize personal and corporate growth that results from the empowerment initiative (Butcher 2006). Interaction in the Workplace Trust and a positive work environment are important elements in developing interpersonal relations at work (Billikopf 2006). Employees gauge how they are regarded by management in many ways, but the words that managers’ use and the way they are delivered are critical to employees’ perceptions of whether they are respected or disrespected. A multitude of job satisfaction surveys indicate that when employees are treated with respect by the management of an organization, the organization reaps the benefits of increased retention, increased productivity, and an overall increase in job performance. However, When employees do not feel respected the results are correspondingly negative (Pounds 2006). This section of the paper will focus on key elements of interpersonal interaction with employees, such as: empathy, sensitivity, conflict resolution, stress, sexual harassment, and creating a generally accepting and congenial workplace, all of which are key elements in employee satisfaction. People’s reactions to change are generally not logical from an outsider’s (ie. Manager’s) perspective. People react according to their own needs at the time. People differ in the value they place on satisfying different needs, so people’s reactions to any change will differ from person to person. Empathy is generally considered the ability to put one’s self in the position of another and try to understand the emotional impact on them as a result of the situation (Bacal 2006). An important part of supervision and management is the ability to react empathetically when necessary, in order to foster a perception of understanding and be able to promote employee satisfaction. Research has shown that empathy, to a certain degree, is an innate emotion that most humans are born with. For example, babies seem to understand sadness and crying, or the laughter of others. The research also shows that empathy can be coached, trained, taught. In his book Emotional Intelligence, Daniel Goleman’s (1995) identifies five emotional competencies. “Among them are four that appear to be necessary to manage others respectfully: the ability to identify and name one’s emotional states, the capacity to manage one’s emotional states, the capacity to read, be sensitive to, and influence other people’s emotions, and the ability to enter and sustain satisfactory interpersonal relationships” (Pounds 2006). These four competencies are all related to the ability of a manager to be empathetic toward employees. In order to promote employee morale and maintain employee satisfaction, it is necessary for supervisors and managers to display the ability to be sensitive to the problems workers occasionally have. Accepting an occasional request for a sympathetic, listening ear, or for advice, is simply part of a supervisor’s job. A supervisor who can help workers cope with their difficulties may deflect further exacerbating issues stemming from the original problem. The sooner workers cope with their problems, the sooner they can concentrate on their jobs. This does not mean to infer that supervisors and managers need to become personally involved with an employees situation, but rather be able to help the employee to find a resolution to the problem (Billikopf 2006). The point is to be sensitive and approachable to and for employees. This does not always have to be on a reactionary basis and may result in increased employee satisfaction if done on a proactive basis. Toward this end, supervisors and managers should begin to understand each person as a distinct individual with unique problems and passions. As an example, child care is often a concern. If you can exhibit sensitivity for that issue, in most cases, you could mitigate anxiety by helping people integrate their children into their work lives. Many employees will react to this positive outcome by performing at a higher level and exhibiting greater energy for their work (Freiberg 2005). It is an obvious assumption that employees are satisfied when their work situation is congenial and free from conflict. However, this cannot be the case all of the time. Conflict is an inevitable part of our workday life as different values and points of view provide richness and tension. When conflict in the workplace does arise, the impetus is on management to actively take steps to resolve the conflict (Melamed 1996). Conflict resolution is not meant as a tool to give employees what they think they deserve, but as a way to settle differences that may arise in the workplace. The main reason to confront conflict is to reach a resolution. Without resolution, conflict merely becomes an opportunity to recycle old arguments and disagreements. When conflict is unresolved, it takes on a life of its own and eventually produces damage that could have been prevented. Proactive organizations provide an atmosphere conducive to resolution and opportunities for employees to voice concerns and be involved with change processes (Kemp-Longmore 2000). If employees understand that potential conflict will be dealt with in a constructive manner, they will tend not to let issues fester to the point that job performance or others are adversely affected. Many times conflict in the workplace is the result of two employees that experience issues with one another. When this is the case, mediation may be the best course of action for an organization to implement. The mediation process attempts to amicably settle a disagreement between two parties by using an objective, third party as an arbitrator in the dispute. This Mediator listens to the positions of the parties, considers amicable alternatives, and offers a potential solution to the issue (Mediation 1997). Mediation is not used solely for the resolution of problems between two individuals, but also for issues that may arise between departments, divisions, or teams within an organization. The mediator can design and facilitate a process that creates a safe place to focus on what is not working in the group(s), and help find ways to bring new focus and clarity. The objective of conflict resolution, whether for individuals or groups, is to promote understanding and enhance employee satisfaction in the workplace. Another important factor in maintaining overall employee satisfaction in the workplace for organization’s is the ability to establish boundaries. Anytime a group of people works together in one place, boundaries must be established, whether formal or informal. A job description should set the basic parameters or boundaries for individual responsibilities, but these boundaries will probably need to be further defined. Interpersonal parameters should be negotiated as well. Because boundary issues can have an impact on productivity and employee satisfaction, the leadership of an organization should address them and establish parameters (Leadership 2006). The definition of a boundary is the ability to know where you end and where another person begins. Typically, when terms like space, limits, and autonomy are used, they are in reference to boundaries. It is not a correct assumption that having good boundaries will result in distancing employees from each other (Gafner 1996). When clear formal boundaries have been established and delineated, it will be easier for informal boundaries to be formed. The term “boundaries” is a very broad term that can encompass: physical space, sexual harassment, acceptable language, authority, processes, and general operating guidelines. If organizations take the time and effort necessary to establish formal boundaries, employees will possess an understanding of the expectations and be prepared to deal with situations related to boundaries. Interaction in the workplace and the effective use of interpersonal skills is a factor in creating a congenial workplace environment and sustaining employee satisfaction. Managers should understand that bad employee interaction or incorrect use of interpersonal skills will adversely affect employees’ attitudes and performance. Because people congregate at the workplace everyday, each with their own issues and sets of circumstances, the workplace experiences its share of negative communication. An organization is defined by its structure and rules. The more employees know and understand about the organization’s structure, the more efficient the organization will operate (Kirby 2002). The main point is that if employees understand that the organization has policies and procedures in place to deal with issues relating to interaction in the workplace, they will be better prepared to deal with related situations when they arise. Knowing that there are defined expectations for interpersonal communications will lead to increased productivity and increased satisfaction in the workplace. Organizational Culture/Employee Focused Organizational culture is generally defined as the ways of thinking, behaving, and believing by the members of a particular social unit (Cooke and Rousseau 1988). Culture may also have indirect effects on performance in benefiting other aspects of an organization. For example, researchers have found that organizational culture is linked to service quality and employee performance, both of which have been identified as fundamental links in Harvard’s Service Profit Chain leading to subsequent consumer and financial success indicators (Klein, Masi, and Weidner 1995). As this paper has stated, the key to enhancing employee performance is the ability of an organization to maintain employee satisfaction. Therefore, establishing an organizational culture that promotes the elements necessary to enhance employee satisfaction would prove to have a positive affect on customer retention and corporate profitability as well. It was not that many decades ago when businesses viewed people as machines. During the Industrial Age, the little attention that employees did receive was focused on speeding production, mechanizing human movement and ensuring a consistent product. Business leaders wanted employees to follow orders and suppress individuality. Today, we recognize that people are not machines, but powerful resources that help business succeed. Employees are now recognized for their important creative and innovative contributions to industry and business in general (Frazee 2004). This paper has thus far focused on many of the elements necessary in order to promote and sustain employee satisfaction. These elements however, need a fertile ground for implementation and sustainment. This section of the paper will consider the importance and necessity of an organizational climate that will allow these elements to thrive and continue to promote employee satisfaction to the maximum extent possible. Many different facets of organizational behavior that would be conducive to fostering these elements such as: leadership attitudes, assessment programs, HR focus, the learning organization concept, organizational structure, organizational values, and the people first concept, will be examined (Appendix 5). The tone of an employee-oriented organization is set at the very top of the organization with its senior management team. The leadership of an organization must set the example for employees and communicate and exhibit the traits of commitment, honesty, ethical behavior, and teamwork. The following six behaviors are essential for leaders in establishing an organizational atmosphere conducive to a high level of employee satisfaction:
These behaviors serve to instill a trust in management by employees that is necessary to cultivate an atmosphere of mutual trust and commitment. Figure 6: Management/Employee Performance Cycle 
Source: Ventana Research Organizations are facing major challenges in the modern day marketplace that often times have adverse effects on employees. Because employment environments have become so complex, the need for effective and enlightened leadership has become essential (Earle 1996). Success in this dynamic business environment requires that everyone in the organization trust one another and be working toward the same common goal (Fig. 6). This should be the goal of leaders seeking to leverage the satisfaction of their employees in order to achieve maximum benefit for the organization. Leaders can create cultures, whether it is a culture of service, profitability, or employee focus. There are many examples of this from Southwest Airlines to Wal-Mart. Leaders must practice what they preach and pledge tangible support to initiatives that have been planned and promoted to the employees of the organization. If an organization communicates to its employees that they are valuable and essential to the success of the company, they must act upon this notion. If these organizations fail to invest in the development of their workforce, they are sending a message that their statements are nothing but shallow and unsubstantiated talk (Frazee 2004). In an effort to stay competitive and increase margins during the recent past, organizations have focused on automation and processes. Many organizations have just focused on operational efficiency, which is only one piece of the larger business performance puzzle. The most important asset, the one that operates and manages the business, are the employees of the organization. Having a motivated and satisfied workforce has a positive effect on the performance of the business (Smith 2006). Good leadership can assure an organizational atmosphere that will accomplish business goals, and at the same time, assure a high level of employee satisfaction by maintaining a strong focus on the employees of an organization. An important element of creating an organizational environment that is conducive to the input and suggestions of employees is the ability of employees to provide feedback to management. A particularly effective way of doing this is through the use of an employee survey or assessment. Progressive organizations attempt to survey their employees on a regular basis in order to gauge the level of commitment and satisfaction of the workforce. This proactive approach captures the voice of the employees and provides actionable feedback to management. This will most often result in such benefits as enhanced leadership, enhanced strategic planning, collaborative efforts, more effective communication and employee teamwork. Collaborative, forward-thinking organizations understand that fostering a culture of employee satisfaction requires direct input from the organization’s employees. In order to remain pertinent and valuable, the attitudes and input of the employees should be assessed on a regular and continual basis. Employees should be involved in assessing the different aspects of the organizational culture. Organizational leadership should strive to measure all parts of the business that can have an effect (positive or negative) on the quality or impression of an organization’s culture (Frazee 2004). The employee satisfaction objective recognizes that employee morale and overall job satisfaction are now considered highly important by most organizations. Having satisfied employees is not only an ethical consideration for organizations, but satisfied employees are also necessary for increased productivity, customer service delivery, and the ability of the organization to exist as an economic entity (Kaplan and Norton 1996). If employees understand that they will be given the opportunity for input in a non-judgmental forum, without fear of retribution, they will be more willing to do so. Their satisfaction and confidence in management will be enhanced if they are able to see action taken on the concerns voiced, or feedback given during the survey process. Employee satisfaction surveys should be taken very seriously and management should act on the results, as employee satisfaction is a direct indicator of employee retention and employee productivity. A well-designed survey may generate actionable information about employee morale, and/or the efficiency and effectiveness of work and organizational processes. Employee surveys can play an important part in improving elements related to enhancing the abilities of an organization to function more effectively in every respect (GuideStar 2006). Organizations that considered themselves to be human resource focused concentrate on ways to enable employees to develop and utilize their full potential. They also undertake efforts to build and support a conducive environment for employee growth and development (Human 2006). In an attempt to be more relevant in today’s rapidly changing business environment, some organizations are redefining the human resources function in order to better serve company and employee needs. “At Eastman Chemical Company, human resources is matrixed to the business organizations, and as a business partner it is responsible for helping to define the needed competencies as the first step in hiring the right people” (Lancourt and Savage 1995). This strategy allows the human resource function to operate with more agility and be more responsive to both the needs of the company and the workforce. Throughout this paper effective communication processes and methods have been linked to increased employee satisfaction. Communication is also an integral part of organizational behavior, often referred to in this context as knowledge sharing. Knowledge sharing can have a significant impact on employee satisfaction and should be considered a key factor in any organization’s culture. There is a revolution going on in the workplace. Knowledge is replacing infrastructure and empowered self-starters are replacing direct supervision. Instead of multi-tiered hierarchies, computer networks and virtual teams are replacing human management and committees. Internet connections have replaced the need for co-workers to be located in the same geographic location (McShane and Von Glinow 2004). We live in a knowledge-driven economy. Organizations are only as intelligent as the individual employees that make them up. Corporate entities therefore, are only as good as their people (Bradley and Russiello 2000). For these reasons, it is imperative that organizational cultures be adapted to communicating effectively in such environments. The subject of formal knowledge management systems is a complex issue and will be addressed more comprehensively later in the paper. From an organizational behavior and culture perspective, management of an organization should recognize the importance and impact on employee satisfaction, of an effective knowledge management strategy. Two important factors concerned with knowledge management strategies are employees having unfettered access to knowledge from all areas of the organization, as well as having access to information they need to efficiently perform their jobs (Trubisz 2006). Because of rapid technological advances and changes in the way that employees communicate with peers, subordinates, management, and customers, organizations need to examine how information and knowledge is communicated. These technological advances in communications and knowledge management are reshaping the field of organizational behavior, and require a defined culture in order to be effectively managed by employees. An element of organizational culture that has a profound effect on employee behavior and satisfaction is the structure of the organization. Organizational structure is the established formal hierarchy of positions, roles, and work flows within an organization (Porras and Robertson 1992). This structure represents the coordination of the different functions within the organization that work together toward the accomplishment of organizational goals. Within this structure there exists defined roles of authority, divisions of labor, and assignment of responsibility (Tetrick 1995). Issues may arise if the organizational structure is too hierarchal in nature and becomes too bureaucratic for employees to understand or work within its structure. Learning organizations eliminate the traditional organizational hierarchy and instead promote local control and decision-making. Learning organizations invest in improving the quality of thinking, the capacity for reflection and team learning, and the ability to develop shared visions and shared understandings of complex business issues. Organizations that are able to exhibit structural flexibility and the ability to evolve will maintain a competitive advantage over the hierarchal competition (Senge 1990). Organizational values are an important factor in supporting employee morale and satisfaction. However, leaders of organizations cannot be perceived as hypocritical when it comes to living the stated values of the organization. There are many studies that have shown the power of meaningful values to energize employees, providing them with a sense of purpose and identity in an ever changing and dynamic work environment. Building bricks and mortar facilities is an easy task for companies. However, the challenge for organizations is to build an environment of trust, respect, and open communication. It is the establishment of these values that will help an organization establish and promote its reputation, highlight their values, and create an environment that is sought out by employees (Freiberg and Freiberg 2004). The most important aspect of establishing organizational values is the ability of employees at all levels to trust the values and not view them as just an attractive tag line on a lobby sign. Employee Benefits Due to escalating costs, family needs, retirement, flexibility and a myriad of other personal desires, an employees’ benefits package has become an important part of their job, as well as their level of commitment to and satisfaction with the organization they work for. Because of the costs involved, many organizations today have to make a choice: Offer an attractive benefits package and forgo profits, or cut back on employee benefits and risk harming employee morale or even losing good employees. With the ability to maintain qualified and satisfied workers at a premium today, providing attractive benefits to employees is an important consideration for any organization. Due to an exponentially increasing economy and a growth in new businesses, employees in many cases, have the advantage in employment negotiations (Ruddy 2001). Employees in today’s economy expect more than just access to reasonable employer provided medical insurance. Other benefit considerations may include: dental insurance, eye care, accidental death, short-term and long-term disability insurance, generous vacation, holidays, sick/personal days, pension plans, dependent care, flextime, and various other possibilities. The key for management is to be able to provide as many of these benefits as possible to ensure an adequate level of employee satisfaction, while at the same time being able to maintain organizational profitability. Most employees require, at a minimum, some sort of employer provided healthcare plan. This employee requirement is being bolstered by many states that are now requiring employers to provide at least a basic form of healthcare coverage for their employees, or face fines, penalties, or a minimum payment into a state funded plan that would then cover their employees. The realities of rising healthcare costs have resulted in employees being forced to accept a greater financial burden in order to cover costs and still keep the expenses at a reasonable level for the organizations that they work for. Although this negatively impacts employee satisfaction, the situation is much the same at every organization throughout the country. A large appliance manufacturer based in Ohio has had to engage the assistance of its employees in order to continue to offer a viable medical benefits package. “To continue offering good health coverage to some 24,000 U.S. employees, Whirlpool would have to revamp its approach. Employees would be asked to meet the company halfway” (Huff 2005). Although employee satisfaction is initially negatively impacted by the situation, organizations that work with their employees to improve their medical benefits will engender positive sentiments at the end of the process. The negative ramifications stemming from an organization’s resistance to work with their employees on maintaining or bettering their medical benefits can be devastating to the morale of the workforce. Wal-Mart is the latest example of this, as exhibited by a recent internal memo that was made public referring to high medical coverage costs, and the impending need to hire healthier workers. Although the memo proved devastating to the morale of the workforce, as well as being a public relations nightmare, it did point out certain realistic issues associated with providing adequate healthcare benefits to employees. Wal-Mart’s efforts capture the struggle that all of corporate America is having in trying to control fast-growing health and benefits costs. And the most frightening statistic in the memo is this: Only 48 percent of all Wal-Mart employees are covered by the company health plan (Hollan 2005). If these percentages rise much higher, Wal-Mart and its employees could face an insurmountable crisis, as could many other businesses in America. A benefit that organizations are able to offer most days that can have a constant, positive affect on employee morale is a flexible work schedule or liberal time-off policy. With vacations shrinking, flexible time-off plans are increasingly being regarded by both workers and employers as the best way to ensure that employees actually take days off when they need them. Sixty-three percent of U.S. companies now use some form of flexible paid-leave bank, compared with 21 percent in 2000 (Weber 2004). The number of hours of work a job requires, the arrangement of hours, and freedom (or lack of it) in determining work schedules effect the non-work part of a person’s life, the time available for family, leisure and self-development. There is a growing dissatisfaction on the part of employees over the number of hours they are being required to work, excessive overtime requirements, and a sense of inflexible work hours (Milkovich and Boudreau 1997). Organizations that are able to allow their employees flex time schedules, often find a higher level of employee morale and satisfaction as a result of being able to offer the benefit. Another major benefit focus that can affect employee morale is having a viable retirement benefit available to employees. With the future of social security benefits in the U.S. being uncertain, at best, employees seek to ensure that there is some form of employer assisted or provided retirement plan available to them. Anyone who has examined the American social security system to any extent knows that the system is in danger of insolvency in the very near future. Because most Americans will spend 20% to 25% of their lives in retirement, financial security after employees retire is a major consideration (Taube 2001). Because retirement is such an important and ever present topic for most workers, organizations that provide retirement benefits to their workforce are in a better position to enhance employee satisfaction with the organization’s benefit package. Employee Motivation Motivational theories were briefly mentioned in the motivation and recognition portion of this paper. This section will offer a more in-depth, analytical perspective of motivational theories. Many of the topics covered thus far in this paper are elements that serve to motivate employees such as: development, compensation, training, etc. However, in addition to these elements that motivate employees are the theory and practice of motivation that can be practiced actively in the workplace. This section will examine several of these theories and practices, as they relate to employee motivation and overall satisfaction in the workplace. This section of the paper is predicated on the heavily researched hypothesis that motivated employees are satisfied employees. The job of a manager in the workplace is to get things done through employees. To do this the manager should be able to motivate employees. This having been said, actual employee motivation is not a simple proposition due to of all of the elements associated with employee motivation theory (Accel 2006). Human nature can be very simple, yet very complex too. An understanding and appreciation of this is a prerequisite to effective employee motivation in the workplace and therefore, effective management and leadership. Figure 7: Employee Motivation 
Source: Accel Team In order to maximize productivity and efficiency in the workplace, employees must be motivated. When employees feel motivated they are more creative, more efficient, and most importantly, satisfied with their work and the organization that they work for (Fig. 7). The theory of motivation is really rooted in the field of psychology. Because of this, one can infer that motivation is unique to the particular individual, affected by different circumstances. “Motivation is the set of processes that moves a person toward a goal. The purpose of behavior is to satisfy needs. A need is anything that is required, desired, or useful. A want is a conscious recognition of a need. A need arises when there is a difference in self-concept (the way I see myself) and perception (the way I see the world around me)” (Allen 1998). Although there are several cited motivation theories, two of the more popular will be discussed here: Maslow’s Hierarchy of Needs, which has previously been mentioned in this paper, and Herzberg’s Two-Factor Theory (Fig. 8). Work motivation is one of the key areas of organizational psychology. Using these two different motivational theories, this paper will analyze the motivation triggers used to maximize employee motivation and satisfaction. Figure 8: Motivational Theories Source: Gemmy Allen
Figure 9: Motivation & Satisfaction Levels 
Source: Ohio State University The implications for the employer’s side of the motivation partnership are clear. The dissatisfiers must be removed before motivators can work. Employees working in unsafe conditions with unfair pay will not be motivated by recognition and delegation of additional responsibility. However, if improvements in both safety and pay are made, employees may still not become motivated. Instead, if all else remains the same the employees will become satisfied but not motivated (Erven and Milligan 2001). The second of the two psychological theories of motivation, and probably the most widely recognized, was first introduced by Abraham Maslow and is known as Maslow’s Hierarchy of Needs. Figure 10: Maslow’s Hierarchy of Needs (illustration) 
Source: Gemmy Allen Maslow’s Hierarchy of Needs identifies five levels of needs, which are best seen as a hierarchy with the most basic need emerging first and the most sophisticated need last (Fig. 10). People move up the hierarchy one level at a time. Gratified needs lose their strength and the next level of needs is activated. As basic or lower-level needs are satisfied, higher level needs become operative. Therefore, a satisfied need is not a motivator (Allen 1998). The basic human needs, according to Maslow are: physiological needs (lowest), safety needs, love needs, esteem needs, and self-actualization needs (highest). This theory indicates that man’s behavior is therefore dominated by his unsatisfied needs. As each need is satisfied, another is created, making the cycle a perpetual, ongoing activity of searching for perfection through self-development (Accel 2006). Motivating employees is a constant task that requires an understanding of employee psychology, as well as an understanding of individual motivators. The key to motivation unlocks human potential. To be effective, managers need to understand what motivates employees within the context of the roles they perform. Of all the functions a manager performs, employee motivation is one of the most complex management issues they face. As employees find an outlet for their creativity and satisfaction with their work, the work they perform becomes a more important part of their life. As a result, employees become more productive and experience higher rates of satisfaction with their employment (Erven and Milligan 2001). In the past, managers assumed incorrectly, that all it would take to motivate employees is to pay them more. It is conceivable for an organization to have more employees than a competitor yet produce less and have disgruntled, low-output employees even though the organization is paying their employees more than the competitor. The research has clearly shown that increased motivation and satisfaction can increase worker output. Organizations are beginning to understand that they are able to motivate increased productivity and employee satisfaction by means other than financial incentives (Increasing Productivity 2005). The foundation of good human relations, the interaction between employer and employees and their attitudes toward one another, is a satisfied work force. Job satisfaction is the degree of enjoyment that people derive from performing their jobs. Satisfied and motivated employees are more likely to have high morale, loyalty and commitment. As a result, they tend to be more dedicated and make larger contributions to the initiatives and goals of the organization (Allen 1998). An organization’s level of understanding of how to motivate its employees can be considered directly related to the level of productivity and employee satisfaction realized at the organization. Chapter 3 Increased Employee Satisfaction Leads to Increased Creativity and Innovation One of the more beneficial results of increased employee satisfaction is the potential for employees to exhibit more creativity and innovation. It has been found that increased levels of creativity and innovation in employees have a positive effect on the corporate profitability of an organization. It is important to note however, that creativity and innovation are positive by-products of satisfied employees, therefore making it important for management to focus on the previously discussed elements of employee satisfaction. This section will consider the important elements and factors typically associated with employee idea creation and innovation, as well as give examples from one of the most innovative companies in the world, Apple Computer Corporation. The term creativity has many different definitions, depending on the context in which it is used. However, a commonly accepted definition of the word is: inventing something new, or previously unconsidered. The generally accepted definition of innovation is: making changes to, or modifying something that is existing or established. “Innovation must add value either through a new product, a new process, a new market for an existing product, and so forth” (Pech 2003). Both creativity and innovation have played major roles in the success of many companies around the world. This happens when an organization’s employees are put in the position of being able to “think outside of the box” or encouraged by management to find better ways of doing things. Organizations are learning that their employees are a great source of previously untapped knowledge and potential solutions to problems. Learning organizations find ways to encourage their employees to openly think about new processes by challenging the old ones. A common practice in companies today is the use of “brainstorming” as a tool by which to collectively create new ideas and perspectives. Brainstorming occurs when a group of people in the same forum, offer ideas and suggestions without much forethought. Everyone is encouraged to offer as many ideas as possible without fear of retribution, and with the understanding that no idea is too ridiculous for consideration. After the initial session, the members of the group go back to all of the ideas and evaluate them in more depth and detail. Surprisingly, many great ideas and new innovations have been spawned using brainstorming sessions. More and more organizations are realizing that innovation will be the key to future success for them. According to one of the world’s foremost authorities on innovation, Dr. W. Edwards Deming, “Innovation, the foundation of the future, cannot thrive unless the top management has declared an unshakeable commitment to it” (Deming 1986). Organizations that have satisfied the basic needs of their employees, then allow them the freedom and latitude to me creative and innovative, are quite often times the beneficiaries of profitable results. Companies such as Apple Computer Corporation, 3M, and IBM have built massive global businesses on the abilities of their employees to be creative and innovative. It is important to note that innovation and creativity can be actively discouraged by the management of an organization, just as they can easily be encouraged as well. Innovation Process Examples to Learn From The following examples stem from issues that were faced by the 101st Air Lift Wing located at the Bangor International Airport, in Bangor, Maine. The first issue is in regard to the desire for a flexible cup holder to be installed in the cockpit of the Wing’s KC-135 Stratotanker airplanes. Because of the increasing amount of hours the pilots were being asked to fly, as well as the need for them to have to use both of their hands, it was decided that cup holders should be installed in the cockpit’s of the aircraft. Rather than ask the pilots, crew chiefs, or maintenance staff about a solution, the Commanders of the base decided to retain an engineering firm from another state. After spending more than six months and more than $100,000 for a design-build solution, the engineering firm came back to the Commanders of the Squadron with a $1,000,000 proposal for a complex cup holder that contained a computerized gyro. In addition to the exorbitant costs, this solution would have taken more than eighteen months to implement. It was eventually decided that due to the costs and time requirements that nothing could be done to address the problem at the time. Therefore, the engineering firm was paid their $100,000 for the design and the project was terminated. Shortly thereafter, a group of pilots was sitting at lunch discussing the issue. Each would offer an idea that was subsequently written down by one of their counterparts. After an hour, and more than fifty viable ideas, the pilots began to analyze each idea on its merits. In the end, a viable solution was found. One of the pilots had a boat with cup holders in it. The line of thinking was that an airplane has similar motion to a boat most of the time. In the end, cup holders with swivels were purchased from a local boat dealer for less than $5 a piece and subsequently installed on all of the aircraft. This is a good example of informal brainstorming producing an innovative idea that proved to be both efficient and cost effective for an organization. Another example from the 101st did not have the same results, but should serve as a learning tool for organization’s that attempt to introduce idea creation and innovation initiatives into their culture. In this case, The Logistics Squadron had been experiencing issues with the scheduling and movement of certain aircraft maintenance kits used for deployment activities. In an effort to find a suitable solution to the issue, a Process Action Team (PAT) was formed and a schedule of meeting times was set. The members of the team were a cross sectional representation from many other organizations on the base, including the Wing Commander, a Brigadier General. In the first meeting the issue was discussed and it was decided that the group should engage in a brainstorming session to introduce alternative ideas and solutions to the problem. As the brainstorming began, group members would make their comments as someone wrote them down in front of the group. In a short period of time, the General began making disparaging remarks about the ideas that were offered. This quickly resulted in members of the group becoming silent and unwilling to offer any further ideas. In the end, because the process was not supported and encouraged at the top, the initiative was left unresolved. The group was disbanded and the problem persisted without resolution Suggestions for Improving the Innovation Process The previous two examples highlight the importance and necessity for management to encourage employees to be innovative and creative. “Creativity is most likely to occur when people have the freedom to pursue their ideas, and this pursuit must be accompanied by the encouragement of management and the support of the corporate culture in which it operates” (Gryskiewicz 1999). For this reason, organization’s that seek to enhance the creative and innovative thinking of their employees must show public support for the idea and take steps to actively encourage employee creativity and innovation. Because of the success and terrific example of employee creativity and innovation at Apple Computer, the next section will highlight some of the initiatives at the company. Apple: An Example of Creativity and Innovation It is no secret to most people on the planet that Apple Computer Corporation is very successful and known for their many innovative products. The creativity and innovation that the company is known for however, did not occur by accident or happenstance. It was however, because of corporate leadership that understood the value and benefits that could be derived by encouraging employees to be creative and innovative. Apple has not always been successful, and in fact was close to insolvency before Steve Jobs was appointed Interim CEO in 1998. At the time Jobs rejoined the company in 1998 the stock price was $13 per share and just two short years later, it was $118 per share. Understanding that innovative products and services were the key to building Apple, Steve Jobs said in 1998, “the cure for Apple is not cost-cutting. The cure for Apple is to innovate its way out of its current predicament” (Linzmayer 1999). Due to the belief that innovation and creativity are the foundation of success, the Executive Management team at Apple takes many proactive steps to ensure the innovation and creativity are encouraged. The process at Apple begins with the hiring process. Apple has access to some of the brightest minds in the technology industry, but the company is seeking creative and innovative people as well as just smart people. Once the innovative employees have been hired, Apple has many incentive and reward programs in place that encourage and foster an atmosphere conducive to entrepreneurial behavior. From the invention of the iMac computer, to the invention of the iPod, and now to innovations like iTunes, Apple can thank their encouragement of creativity and innovation. Other, newer high tech companies are examining the successes at Apple and adopting many of the innovation strategies that made Apple such a success. One of these companies is Google. “The similarities between the two are striking, to say the least. The game is changing. It isn’t just about math and science anymore. It’s about creativity, imagination, and above all, innovation” (Berner and Brady 2005). Apple should serve as a good example of the benefits that can be derived from an organization that actively encourages its employees to be creative and innovative. 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