4. rd session 4 empl engagement

8/10/2019 4. Rd Session 4 Empl Engagement

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4. Managing IR throughPsychological Contract

andEmployee Engagement

Debi S. SainiProfessor HRM Area

Management Development Institute, Gurgaon-122007

1. Globalization changed the business world

2. Competition: What do CEOs expect from HR?

3. Use of Psychological contract for promoting engagement

4. Meaning of engagement & its incidence across countries

5. Engaging orgs. necessitate transformational leadership

6. 12 Key factors that help Cos. promote engagement

7. Practices of some companies to promote engagement

Issues Dealt with in this Presentation


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We know that the Worldhas Changed substantially

in the Pasttwo Decades!!

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Employee Engagementis expected to be promoted

throughPsychological Contract:

What is it?


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What is Psychological Contract?

The perception of

overall set of expectations

held by employees and the employer regarding

what employees will contribute to the org. (contribution)

and what the org. will provide in return (inducement)

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HR Practices, Org. Culture & Leadership as Factors for Outcome

PsychologicalContract

Employee care Empowerment Competency-bldg. Career Development Reward/r ecognition

=EngagementHigh p erformance

FormalEmployment

Contract

Performing duty asper job description &Adhering to Co. Rules

+

Compensation &Job security

BusinessEnvironmental

Context

Strategic HR Systems& Interventions

Leadership

FormalOutcome

Fig.: Psychological contract between employer & employee is a tool of engagement

Org. CultureValuesPositive Emotions

Debi S. Saini 2009


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Employees Expect various Types of Justice

Organizational Justice: Extent to which people perceive overall fair treatment at work by the org.

Distributive JusticePerceived fairness of how resources/rewards are distributed

Procedural Justice perceived fairness of the procedures used to make allocation

Interactional JusticeFairness in process of making decisions(Interpersonal side of decision-making)

Psychological Contractis expected to result inEmployee Engagement

& ExcitementWhat is Employee Engagement?


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An employee is said to be engaged when s/hebelieves in an org.s goals & makes efforts in their realization

Has passion for work; says that s/he is satisfied doing the work

Says that s/he is enthusiastic/proud about work

Is willing to recommend the organization to others

Stays with the organizations despite other attractions

Is prepared to go beyond job requirements

What does Employee Engagement Involve?

People Engagement at Work in Britain: Study

Source: Gallup Poll data of Great Britain, working population 18 years and older June 2005. n = 1,006

Copyright 2005 The Gallup Organization, Princeton, NJ. All rights reserved.

EngagedEngaged Not EngagedNot Engaged Actively DisengagedActively DisengagedThese employees are loyaland psychologicallycommitted to theorganization. They are moreproductive , more likely tostay with their company, lesslikely to have accidents on the

job, and less likely to steal.

These employees may beproductive, but they are not

psychologically connectedto their company . They aremore likely to missworkdays and more likelyto leave .

These employees arephysically present but

psychologically absent. Theyare unhappywith their worksituation and insist on sharingthis unhappiness with theircolleagues.

16% 60% 24%


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Gallups QuestionnaireQ uest ions A R esponse

D o I know what is expected of m e at work ? Y es

D o I have the material and equipm ent I need todo my w ork right?

Y es

A t work do I have the opportunity to do what Ido best every day?

Y es

In the last 7 days, have I received recognition orpraise for good wor k?

Certainlynot

Does my supervisor or someone at work, seem tocare about me, as a person?

Certainlynot

Is there someone at work who encourages my Y es

Employee Engagement Around the Globe is Low

Source: Towers Perrin Global Workforce Study: Executive Report, Winning Strategies for a Global Workforce, 2006Towers Perrin was later on taken over by Watson WyottThis study was based on a sample of 86000 employees from16countries and covered all actegories of employeesshop floor, supervisory, middle & senior management

* Global weighted average,based on total surveysample

Countries are not

necessarily comparable,

due to cultural

differences in survey

res ponse patterns


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Promoting EngagementShift taking place

from Traditional Personnel managementto Strategic HRM

through Soft Levers:

But Still, in many cases

P&A is still negative

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Engaging &Organizations are Creations ofTransformational Leadership:


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Leaders Focus on Culture & Outcome; not Rules

1. Develop business vision

2. Culture to achieve vision

3. Flatten the organization

4. Eliminate bureaucracy

5. Empower individuals6. Raise quality & efficiency

7. Eliminate boundaries

Welchs 7 Point Program forMgt by Leadership

GE MarketCapitalization

Some Factors that leadto Promoting

Engagement in

HPOs: Research?


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--Relationship with boss is the greatest motivator

--People wish to lead a meaningful, dignified life

--They need to be heard

--They need to be inspired

Some cos. are trying to create thousands of leaders

1. Creating Leaders in place of Bosses

In Search of Excellence revealed Importance of:

Shift in people mgt. from Hard to Soft Model

People Emotion

Engagement Empowerment

Caring & EnjoymentPower of Trust: C-DOT Library

From effectiveness to: creativity, enthusiasm, excitement

2. Focus on Peoples Care & Trust


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3. Living Wage and Benefits3. Living Wage and Benefits

Pay Benefits

Meeting reasonable reward expectations of the employee

4. Culture of Respect & Dignity4. Culture of Respect & Dignity

Marching towards realization of bundle of needs

It requires nurturing & sustaining a conducive culture


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5. Job design & Interesting Work5. Job design & Interesting Work

Devise the job design thatmakes the employee feel unique!

Job Features Important to applicants?For Males

Interesting Work

Chance for promotion

Good benefits

Job security

Opportunity to learn new skills

High income

Annual vacations

Geographical location

Flexibility in work hours

Able to work independently

For FemalesInteresting Work

Good benefits

Job security

Chance for promotion

Opportunity to learn new skills

Geographical location

Annual vacations

High IncomeFlexibility in work hours

Able to work independently

Survey by Time : 11,666 people in all: 10,221 ages 18-28 (average age: 22) 1,046 ages 29-39; 310 ages 40-50; 89ages 51-61 Of the 10,221 emerging adults: 3,120 males (30%), 7,122 females (70%)


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6. Growth Opportunities & Development

People want challenging work so thatthey develop their employability

7. Employee Empowerment & Ownership

Giving power to make work decisions

Decisions delegated to lower levels

Aim: Soft HR trust & development EngagementHRD

Individual Empowerment: Job enrichmentFlexitimeRotation


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Empowerment through Employee Involvement:The Elixir of 1990s in West

In-house newsletters

Suggestion schemes

Attitude surveys

Quality Circles

Communication is key

The synergy of team

8. Communication is an Important Aspect of

Open & Caring Culture: MBWA in HPSustained interactions

that mutually benefitthe parties concerned

Proves magnetic


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EncouragingInformal Peer

Culture

Open Forums(Transparency)

News Letters,House Journals

Individual

Group

Mass

Informal

Goal-setting/Review

VideoMagazines

Gettogethers/

Picnics

Open doorCaringCulture

FormalMeetings

Communication can be Enhanced in Various ways

9. Engagement through Getting the Family Involved

Family buttresses feelings of employee;So Care for Family

Invite family to company premises before joining

Welcome letter to parents & spouse on employees joining

Inviting family on celebration/ annual days, family excursions

Support to family when employee is abroad(Medical coverage for dependent parents; assistance, 2 nd house maintenance)


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10. Engagementthrough

Diversity Management

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The process of developing an environment

that maximizes potential of

all people in an org

that involves learning to value qualities

that are different between groups & even individual s

What is Diversity Management?


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EngagementThrough

Individuality &Diluting Rule-centricity

in Google

Google has become a magnetfor like-minded geniuses:

#1 on Fortunes 100 Best Places to Work

Google: $200 billion market cap.

Larry Page and Sergey Brin

Co-founders, Google

Google Creating Joy by Giving Employeeswhat they need: casualness, diversity, fun

The only U.S. companieswith larger market caps are:

Exxon Mobil, at $328.4 billionMicrosoft, at $276 billion

Wal-Mart, at $207.6 billion.


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1. Pre-school & after-school child care

2. Extended maternity /paternity leave

3. Safeguards against sexual harassment

4. Flexible working hours

5. Work-life balance

Some Initiatives in Diversity Mgt. in the West

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6. Alternative career paths

7. Training to avoid mid-career plateau

8. Telecommuting facilities

9. Harassment prevention training

10. Networking opportunities for the diverse: Share experience & learn from others

Some Initiatives in DM contd


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11. Raising the profile of women employees through dissemination of info. on their achievements/issues

12. Awareness about potential of disabled/aged

13. Adjustment audit for disabled, women, aged

14. Mentoring of disabled for advancement

Some Initiatives in DM contd

11. Ingrain Positivity at the Workplace

Little victories celebrated

Praise, praise, praise

Sports/co. clubs arranged

Creating your small world of living joyfulness


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12. Involving Employeesin

Community Programmes

Community Programs & Culture: e.g. IBMs Smarter Planet

Employees contributions towards the organization being aresponsible citizen and enhancing satisfaction

Its objective is: Caring for emotional & spiritual needs of employees

Implementing the practice

Sabbatical for social work including funding

Encouraging Socially responsible behaviors--Adopting villages, working for charitable cause-- included as official work

Community work week--certain hrs per month available for community work

Choose your social project


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The Above Ideas in Action:How have Some

Companies CreatedEngaging Environment

through Different Practices?

Benchmark the Suitable ones

SaskenCommunication


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Sasken Communication Technologies, Bangalore

Values, Culture, Trust, Transparency, Informality

State of the art soft HRM in operation

Unique HR policy: No attendance system No limit on sick leave Freedom to come & go; & think/innovate

Policy Change Request can be made by any one

Same rules for all categories of people Same hotels when on travelCEO sits in similar cubicles

Prudential:Culture & Affiliation


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Prudential Process Mgt. Services (PPMS)

Company with 1,200 employees Serves Prudential UK

Well thought out HR Strategy: conducive environment Has reduced attrition to 20% (Industrys attrition is 45%)

HR Strategy: Competes on culture; not compensation

Involves families in get together; funds their HRD needs

Vitas Inc. USA


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Employees highly cared; wear the 4 Co. values on Shirts1. Patients and families come first2. We take care of each other3. Ill do my best today & do even better tomorrow4. I am proud to make a difference

Live a sense of pride: Great excitement in working for Vitas

HR-VP received:HR Leadership of the Year 2006 award of SHRM

One nurse said: Sometimes we wonder why we came here so late.

Vitas Inc. USA

Miscellaneous Practicesthat PromoteJoyfulness in

Different Companies


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Some Other Culture-Building HR Practices

Associate Delight Index (ADI): How do people feel in the co.

Trust Index (Credibility, Respect,Fairness, Pride & camaraderie)(Used by Grow Talent for Best Places to Work Survey)

New planes linked toits employees childrens name

4. rd session 4 empl engagement

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