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Chapter 10:
ENGAGING AND EMPOWERING ETHICAL
EMPLOYEES
CHAPTER 10 CHAPTER AND ADDITIONAL QUESTIONS
In studying this chapter, students should consider the questions below.
“CQ1” refers to “Chapter Question 1.” This question appears at the end of the textbook
chapter.
“AQ1” refers to an “Additional Question 1.” This is an “additional” question related to
the chapter. It is not listed at the end of the textbook chapter as a “Chapter Question”.
These items are numbered within the two categories based on the order in which the
answer appears in the chapter.
CQ1: How can managers organize work so employees are more engaged with job tasks and
organizational goals?
CQ2: Describe different techniques for managing go-getters, fence-sitters, and adversarials.
CQ3: What is the team problem-solving process? What are its advantages?
AQ1: What is open book management?
CQ4: How would you design an Appreciative Inquiry workshop to achieve superior customer
service?
CQ5: Describe how to implement a Scanlon-type gainsharing plan.
CQ6: What are the benefits of offering profit sharing and stock options, and creating an
Employee Stock Ownership Plan and cooperatives? Describe each of these techniques for
empowering employees.
CHAPTER 10 LEARNING OBJECTIVES
After completing this chapter, students should be able to:
Describe how to engage employees at work
Manage three types of employees: go-getters, fence-sitters, and adversarials
Facilitate an Appreciative Inquiry workshop to achieve superior customer service
Implement Open Book Management and a Scanlon-type gainsharing plan
Distribute financial improvements to all employees through profit sharing, stock options,
Employee Stock Ownership Plans, and Cooperatives
CHAPTER 10 OVERVIEW
A high performing ethical organization is a community of people in which each employee
has a sense of belongingness and ownership, and feels respected and accountable. Some systems
of management treat nonmanagement employees with greater respect than others by actively
involving them in the decision-making process. Organizations with engaged and empowered
employees emphasize two-way communication with participative management processes.
This chapter examines how to engage employees by meeting essential human needs,
ensuring organizational justice, and providing meaningful work. The chapter also explores how
to empower employees by giving them decision-making authority, providing relevant
information about organizational operations, and sharing the financial benefits generated by their
efforts.
CHAPTER 10 LECTURE OUTLINE
Teaching Objective: To teach how to engage and empower employees.
Suggested Time: Two to three hours of class time is recommended to present this chapter.
I. Chapter Question 1: How can managers organize work so employees are more
engaged with job tasks and organizational goals?
Extent of employee engage
What people want in a job
Engaging employees through human needs
II. Chapter Question 2: Describe different techniques for managing go-getters,
fence-sitters, and adversarials.
Background
III. Chapter Question 3: What is the team problem-solving process? What are its
advantages?
Empowering effective teams
IV. Additional Question 1: What is Open Book Management?
V. Chapter Question 4: How would you design an Appreciative Inquiry workshop to
achieve superior customer service?
VI. Chapter Question 5: Describe how to implement a Scanlon-type gainsharing plan.
VII. Chapter Question 6: What are the benefits of offering profit sharing and stock
options, and creating an Employee Stock Ownership Plan and cooperatives?
Describe each of these techniques for empowering employees.
Profit sharing
Stock option plan
Phantom stock
CHAPTER 10 SUPPORTING MATERIALS
Textbook Inserts
Ethical Dilemma Analysis
What would you do?
Let’s Build a Building
In the Real World: Enron
Exhibits
Exhibit 10.1: Maslow’s Hierarchy of Needs
Exhibit 10.2: Herzberg’s Job Satisfaction-Dissatisfaction Theory
Exhibit 10.3: Sources of Meaningful Work
Exhibit 10.4: 12 Core Elements of Employee Engagement
Exhibit 10.5: Workplace Attitudes and Behaviors
Exhibit 10.6: Empowering Behaviors
Thematic Boxes
Tips and Techniques
Best Practice in Use
CHAPTER QUESTION 1: HOW CAN MANAGERS ORGANIZE WORK SO
EMPLOYEES ARE MORE ENGAGED WITH JOB TASKS AND ORGANIZATIONAL
GOALS?
EXTENT OF EMPLOYEE ENGAGEMENT
Organizations need talented employees committed to task performance, organizational
goals, and the organization itself.
A strong linkage exists between ethical organizations and employee engagement.
Researchers at the Ethics Resource Center and Hay Group report that employees in
which reduces the company’s ethical risks.
In 2009, the Gallup Organization reported that only 30 percent of American workers—
The relationship between job satisfaction and employee productivity is complex.
WHAT PEOPLE WANT IN A JOB
oWhat do people want in a job? Of course people want a good salary and job security –
everyone has bills to pay.
oIn a 2009 survey conducted by the Society for Human Resource Management, job
security (63 percent), benefits (60 percent) and compensation/pay (57 percent)
were the three most important features employees wanted in a job.
o But is that all they want? No. Many other factors matter to employees.
oAlso chosen as “very important” by survey respondents were:
opportunities to use skills and abilities (55 percent)
relationship with immediate supervisor (52 percent)
management recognition of employee job performance (52 percent)
communication between employees and senior management (51 percent)
the work itself (50 percent)
autonomy and independence (47 percent)
meaningfulness of job (45 percent)
relationship with co-workers (42 percent)
ENGAGING EMPLOYEES THROUGH HUMAN NEEDS
oSome developmental psychologists and organization theorists maintain that individual
behaviors are driven by the desire to fulfill fundamental human needs.
oRespecting others requires that managers recognize and address fundamental human
needs at the workplace.
oDevelopmental psychologist Abraham Maslow differentiated five categories of needs
every individual has: physiological, safety, social, self-esteem, and self-actualization.
oMaslow maintained that these five needs exist in the form of a hierarchy where
individuals first seek to fulfill lower level needs, beginning with physiological needs, and
then incrementally progress up the hierarchy, culminating in fulfilling self-actualization
needs.
oReview Exhibit 10.1 “Maslow’s Hierarchy of Needs,” which show how these needs can
be addressed at the workplace.
oLevel 1: Physiological Needs: Oxygen, food, water, sleep
Work Implication: lunch breaks, rest breaks, living wage
oLevel 2: Safety Needs: Personal security, financial security, order, stability, health,
well-being
Work Implication: Safe working conditions, job security,
retirement benefits
oLevel 3: Social Needs: Love, belonging, friendships, intimacy, acceptance
Work Implication: Camaraderie, workplace relationships, teams
oLevel 4: Esteem Needs: Self-esteem, status, recognition, reputation, respected by
others
Work Implication: Recognition for personal achievements
oLevel 5: Self Actualization Needs: Personal development and fulfillment,
authentic, creative, autonomous, truth, justice, wisdom, meaningful life
Work Implication: Challenging and meaningful work
DISCUSSION ACTIVITY
Have students independently distribute 100 points based on how important each of the 5 needs in
Maslow’s hierarchy is to their lives and their parents. Which of the 5 needs received the most
number of points? Which the fewest number of points? Why? Do they have the same needs as
their parents? Discuss in small group.
Next, have students independently distribute 100 points for their current or previous job, their
parents’ jobs, or one of the “best places to work” that appear at end of every chapter, using
Maslow’s hierarchy of needs. Which of the 5 needs received the most number of points? Which
the fewest number of points? Why? Discuss in small group.
oThe work of David McClelland complements Maslow’s hierarchy of needs.
oMcClelland emphasizes three human needs: a need for affiliation, a need for
achievement, and a need for power or authority.
oUnlike Maslow, McClelland does not organize the need for affiliation,
achievement, and power in the form of a hierarchy.
oInstead, McClelland argues, individuals can be rated high, moderate, or low for
each of the three needs.
oManagers can best engage an employee by matching the individual’s most
dominant need with its associated motivating factor. Generally:
Employees with a high need for achievement are motivated by challenging
work
Employees with a high need for power are motivated by managing other
people
Employees with a high need for affiliation are motivated by collegial work
environments
DISCUSSION ACTIVITY
Have students independently rate themselves and their parents as high, moderate, or low for each
of McClelland’s three needs, the need for (1) affiliation, (2) achievement, and (3)
power/authority. Explain why each need was rated high, moderate, or low. Do they have the
same needs as their parents? Discuss in small group.
Next, have students rate their current or last job, or organization membership, and their parents’
jobs, as high, moderate, or low for each of McClelland’s three needs, the need for (1) affiliation,
(2) achievement, and (3) power/authority. Explain why each need was rated high, moderate, or
low at the workplace. Does the workplace need profile fit their own need profile? Discuss in
small groups.
JOB SATISFACTION
Frederick Herzberg, based on interviews with accountants and engineers, concluded
that job satisfaction is not a linear concept where the presence of some factors results in
job satisfaction and their lack contributes to job dissatisfaction. Instead, factors
contributing to job satisfaction are separate and distinct from factors contributing to job
dissatisfaction.
oJob satisfaction factors, which he called “motivation factors,” are related to what
people do at work. A lack of motivation factors does not necessarily result in job
dissatisfaction.
oJob dissatisfaction factors, which he called “hygiene factors,” are related to a bad
working environment. A good working environment, however, rarely contributes
to sustained job satisfaction.
Review EXHIBIT 10.2 “Herzberg’s Job Satisfaction-Dissatisfaction Theory” for the six
factors that contribute the most to employee satisfaction and dissatisfaction.
oThe motivation factors that impact job satisfaction are: achievement, recognition,
work itself (doing a complete job), responsibility, advancement, and growth.
oThe hygiene factors that impact job dissatisfaction are: company policies and
administration, quality of supervision, relationship with boss, working conditions,
base wage or salary, and relationship with peers
Yet many managers continue to falsely assume that the best way to motivate employees is
through financial rewards and the threat of disciplinary action.
Daniel Pink reviewed behavior research over the past fifty years and concludes that the
insights of Maslow, McClelland, and Herzberg are still valid.
DISCUSSION ACTIVITY
Have students independently rate their current or previous job, or organization membership, as
high, moderate, or low for each of the 12 motivation and hygiene factors in Exhibit 10.2
“Herzberg’s Job Satisfaction-Dissatisfaction Theory.”
1. Explain why each motivation factor was rated high, moderate, or low. How did the factor
impact your job satisfaction?
2. Explain why each hygiene factor was rated high, moderate, or low. How did the factor impact
your job dissatisfaction?
ORGANIZATIONAL JUSTICE
oEmployee engagement is more likely when employees perceive justice, or fairness, in
decisions associated with organizational policies, procedures, and outcomes.
oJustice is the most essential moral value.
oEthical managers must ensure that justice is a highly valued attribute of organizational
operations.
oOrganizational justice is multidimensional. Scholars distinguish among four forms of
organizational justice – procedural, informational, interactional, and distributive justice:
Procedural Justice: Decision-making procedures are fair. Employees can provide
input, procedures are unbiased and applied consistently, and decisions can be
appealed.
Informational Justice: Information is conveyed fairly. Employees receive relevant
and accurate information in a timely manner.
Interactional Justice: Employees treat each other fairly. Employees are treated
with dignity by supervisors, peers, and subordinates.
Distributive Justice: The distribution of outcomes is fair. Pay, benefits,
promotions, and workloads reflect individual capabilities and efforts.
oResearchers report that organizational justice is highly associated with organizational
citizenship behaviors and commitment to supervisors and the organization.
oEmployees are more willing to help co-workers who have heavy workloads or are
struggling with work-related problems when they themselves have been treated
fairly and with integrity.
DISCUSSION ACTIVITY
Have students rate a current or previous employer, or organization membership, as high,
moderate, or low for each of the 4 organizational justice dimensions: procedural, informational,
interactional, and distributive justice. Then answer the questions below and discuss in small
groups.
1. Which dimension was a strength (high rating)? Provide real-life example.
2. Which dimension was a weakness (low rating)? Provide real-life example.
3. What would management need to do to transform the lowest score item into a strength?
UNETHICAL BULLIES
Unethical bullies create a range of injustices at work. Employees usually cannot perform
at peak productivity when they are being bullied by peers, subordinates, or supervisors.
According to the Workplace Bulling Institute’s 2007 survey, 37 percent of the
respondents had been bullied at work and 13 percent were being bullied at the time of the
survey.
Immediate supervisors were the most predominant group of bullies.
Bullying is defined as repeated verbal abuse or abusive conduct that is threatening,
humiliating, intimidating, and interferes with work.
Bullying can take many forms, including hostile and insulting remarks about appearance
or lifestyle, hurtful jokes and pranks, taunting, excessive teasing and ridicule, continual
false accusations, public criticisms, and angry tantrums.
Bullying has many negative impacts on overall organizational performance.
oLow levels of job satisfaction, organizational commitment, and morale
oHigh levels of absenteeism, psychological distress, and turnover.
oIllegal forms of harassment and discrimination, and threaten employee safety.
oCreate unhealthy stress among recipients and witnesses.
oVictims feel frustrated and anxious, which can lead to clinical depression.
oBullying behaviors, unreported, lead to employee disengagement because their
passion for work is diluted due to anxieties and dissatisfaction.
DISCUSSION ACTIVITY
Have students think back to grade school and high school. How did they respond to an unethical
bully in the neighborhood, on the school bus or playground, or in class? Why? What were the
negative impacts of the unethical bully’s behaviors on you and others?
MEANINGFUL WORK
Meaningful work is typically defined as spending time at work to achieve something
that is personally desirable.
When work is personally meaningful, an employee passionately engages his or her entire
intellectual, physical, and emotional energies in the work that needs to be done because it
is what he or she feels destined to do. Employees feel usefully alive in a way that benefits
the organization and their own personal development.
Review EXHIBIT 10.3 “Sources of Meaningful Work” which provides a broad
conceptualization of what makes work meaningful using a 2x2 matrix.
According to Lips-Wiersma and Morris, four sources of meaningful work are:
1. serving others by making a difference in their lives and meeting the needs of
humanity
2. unity with others by working together, sharing values, and having a sense of
belonging
3. developing and becoming self through moral development and personal growth,
and by being true to self
4. expressing one’s full potential by creating things, achieving tasks, and influencing
others
As diagrammed in Exhibit 10.3, the four sources can be understood along two
continuums: (1) being and doing, and (2) self and others. A tension exists along each
continuum that requires carefully balancing the two extreme positions.
DISCUSSION ACTIVITY
Have students plot an “X” on each axis in Exhibit 10.3 “Sources of Meaningful Work” for their
current or previous job task, or organization membership. First, did the job entail students
serving the need of others (“others”) or their own needs (“self”)? Second, did the job entail
students spending most of their time in continual action (“doing”) or did it allow time for
reflection (“being”)? Which of the four sources of meaning are embraced by the two “X”s: (1)
unity with others, (2) service to others, (3) expressing full potential, or (4) developing and
become self? What could managers do to make your job task more meaningful? Discuss in small
groups.
MEASURING EMPLOYEE ENGAGEMENT
Marcus Buckingham and Curt Coffman explored the Gallup Poll’s database to determine
what talented employees wanted most from the workplace.
oMore than any other factor, what talented employees desired most at the
workplace was to work for an excellent manager. The relationship talented
employees had with their immediate supervisor mattered more than anything else.
The Gallup researchers then analyzed the survey responses of more than 80,000
managers from 400 companies to determine the attributes that differentiated “excellent
managers” from “average managers.”
According to the most talented employees, an excellent manager:
otreated every employee as an individual
ofocused on an employee’s strengths rather than weaknesses
omeasured and rewarded outcomes
oselected talented job applicants
oestablished high expectations
odeveloped their subordinates for advancement within the organization
The researchers interviewed excellent managers about their techniques for managing
people. They heard a common refrain about employees:
People don’t change that much.
Don’t waste time trying to put in a person what was left out.
Try to draw out of a person what was left in.
That is hard enough.
oThe Gallup Organization researchers found that pay is not among the most important
motivational factors contributing to employee engagement and productivity.
oPay matters, but the most productive workers can usually obtain equivalent or
higher pay elsewhere.
oTalented employees remain with an organization because they are fully engaged
in their work tasks and workplace relationships.
oReview EXHIBIT 10.4 “12 Core Elements of Employee Engagement,” which provides
12 core elements that must be experienced at work to attract, engage, and retain talented
employees.
DISCUSSION ACTIVITY
Have students complete the “12 Core Elements of Employee Engagement” survey in Exhibit
10.4 for a current or previous job, or organization membership. What were the engagement
strengths? What were the engagement weaknesses? What would management need to do to
transform the lowest score item into a strength? Discuss the results in small groups.
