978-0470639948 Chapter 10 Solution Manual Part 1

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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 2×2 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.