corporate profit and employee satisifaction: storeso …
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CORPORATE PROFIT AND EMPLOYEE SATISIFACTION:
1ES:1:U1:0,115E111NC THE LINK WrIFEEN SEVEN EDGARS
STORESo A CASE STUDY
SEAN DOUGLAS CLARKSON
SUBMITTED IN PARTIAL FULFILMENT OF THE
MASTERS DEGREE IN :USINESS ADMINISTRATION
OFFERED :Y
TECEIN11KON WRTWATERSRAND
AND
VALIDATED AND CONFERRED Y
THE UNIIVERSETY OF WALES
September 2003
SUPERVIISOR: Dr. CRAM VOORTMAN
UNIVERSITY OF JOHANNESBURG LIBRARY AND INFORMATION CENTRE
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DECLARATI[ON
I declare that the research study "CO !'' ORATE PROFIT AND EMPLOYEE
SATISPACTION: ESTABLISHING THE LINK WITHIN THE EDGARS
STORES" is an original work and all sources of a similar nature have been appropriately
referenced.
an IDongilas C ➢arkson
ii
ACKNOWLEDGEMENTS
I would like to acknowledge and thank the following individuals and organisation for
assisting me in compiling this research study:
My wife Gale, for all her support, understanding and encouragement over the duration
of my studies.
My Children, Jared and Tayla, for all the time they missed being with me due to my
studies.
My family and friends for all their support and understanding.
My line manager Dave Muller, for all his guidance and support.
My supervisor Dr Craig Voortman, for his guidance and advice during this research.
Edgars Consolidated Stores Limited (Edcon) for allowing and assisting me with time,
resources, and the financial support to complete my MBA.
111
AAST OF CONTENT
CHAP 11 IR 11 - 11 RODUCTION Page Number
1.1 INTRODUC 110N 1
1.2 ILACKGROUND 1
1.2.1 Staff Reductions in a competitive environment
3
1.2.2 Exploring some of the ingredients off super results
3
1.2.3 Rationale
4
1.3 THE FRO LEM STATEMENT
4
1.3.1 Establishing the implications of understanding the problem 5
1.3.2 Establishing the implications of not understanding the problem 5
1.3.3 The importance of the research 5
1.4 0 JECTIVES OF TELE STUDY 6
1.4.1 The objectives of the study
6
1.4.2 Constraints
6
1.5 RESEARCH METHODOLOGY
7
1.5.1 ILasic Methodology
7
1.5.2 Literature Search
7
11.5.3 Data collection and analysis
7
1.5.4 Sampling
8
1.5.5 Questionnaire
8
1.5.6 Comparison
9
1.5.7 Research Goals
9
1.5.8 Research Process 10
1.5.9 Data collection, analysis and interpretation
10
iv
1.5.10 Action Plan 10
1.6 OUTLINE OF INVESTIGATION 111
1.7 SUMMARY 12
CHAPTER 2 — LITERATURE REVIEW
2.1 INTRODUCTION 13
2.1.1 Exploring the link between the Customer and the Organisation. 14
2.2 EXPLORING SOME DEFINITIONS 14
2.2.11 The Employee 14
2.2.2 A Job
15
2.2.3 Job Satisfaction 15
2.2.4 Perception 16
2.2.5 Profit
17
2.2.6 Summary 17
2.3 EMPLOYEE SATISFACTION
18
2.3.1 Introduction 18
2.3.2 Factors / Facets which have an impact on employees Job
satisfaction 18
2.3.3 enchmarking: What the most admired organizations are doing 29
2.4 WHY EMPLOYEE SA HSFAC HON IS SO IMPORTANT
32
2.4.1 Introduction 32
2.4.2 The Service Profit Chain 33
2.4.3 The Financial Impact that employees have on an organization 40
2.5 SUMMARY 42
CHAT IL ER 3 —
ACKGROUNICD — ORGANISATIONAL HISTORY AND I:,
GROWTH OF EDGARS
3.1 INTRODUC 1110N 44
3.2 EARLY ILEGINNINGS — A REEF HISTORY OF THE
EDCON GROUP 45
3.3 GROWTH IN THIE EDCON GROUP 46
3.4 IMPLEMENTING CHANGE 49
3.4.1 1998: A Most concerning year for Edgars. 49
3.4.2 1999: A year of positive change within Edgars. 50
3.4.3 2000: A diffricullt year for Edgars. 511
3.4.4 2001: A year of consolidation. 52
3.4.5 2002: A record year in terms of profitability and sales growth. 53
3.5 SUMMARY 58
CHAPTER 4 — DISCUSSION OF THE EDGARS ORGANISATIONAL
PERCEPTION RESULTS„ CORRESPONDING TO EMPLOYEE
SATISFACTION.
4.1 INTRODUCTION 59
4.2 OVERVIIEW OF THE TOTAL RESULTS FOR THE SEVEN EDGARS
STORES, FOR THE ORGANISATIONAL SURVEY, ALL QUESTIONS 62
4.3 ANALYSES OF THE RESULTS RELATING TO 1.11:1116
EMPLOYEE SATISFACTION FACTORS 64
vi
4.3.11 Training Opportunities for staff. 64
4.3.2 Promotional Opportunities for staff. 66
4.3.3 Developmental Opportunities 6$
4.3.4 Job Challenges 70
4.3.5 The Working Environment 72
4.3.6 Support (given to employees). 74
4.3.7 Respect (for employees). 76
4.3.8 Trust (fin employees). 7$
4.3.9 Sufficient Available Resources (to work effectively). $0
4.3.10 Relationships (within the organization). $2
4.3.11 Pay (or remuneration). $4
4.3.12 Overall Average total results for app dimensions,
for selected stores. 86
4.4 ANALYSIS OF THE RESULTS RELATING TO THE
SELECTED STORIES PROFITABILITY ANTI) TURNOVER $8
4.4.11 Analysis of the increase in Turnover versus the increase in Employee
Satisfaction Perception $9
4.4.2 Analysis of the data, to establish whether a correlation exists
between the employee satisfaction perception and store tanrnover 90
4.5 SUMMARY 92
CHAPTER 5 — FINDINGS, RECOMMENDARIONS
AND CONCLUSIONS.
5.1 INTRODUCTION 93
5.2 RESEARCH FINDINGS 93
vii
5.3 RECONEWIENDATIONS 95
5.4 CONCLUSIONS 95
LIIOGRAIPHY 96 - 102
viii
UST OF FIEGUIRES Page Number
Figure Li
Figure L2
Figure 2.1
Figure 2.2
Figure 2.3
Figure 2.4
Figure 2.5
Figure 3.1
Figure 4.1
Figure 4.2
Figure 4.3
Figure 4.4
Figure 4.5
Figure 4.6
Figure 4.7
Figure 4.8
Figure 4.9
Figure 4.10
Figure 4.11
Figure 4.12
Figure 4.13
Figure 4.14
Figure 4.15
- Sales Percentage growth for all Edcon Stores
for the past 19 years 2
Profit percentage growth for all Edcon Stores for the
past 19 years. 2
- Relative Importance of Different Sources of value
experienced by customers 32
- Service Profit Chain 33
-Profit increases resulting from a 5% increase in
customer loyalty 34
- The "Sears" Employee-Customer-Proffit Chain Modell 40
Customer liffe cycle profit pattern in the credit card industry 42
Comparison of three mystery-shopping surveys, with
averages for the selected (Edgers stores studied by
the researcher and the average for all stores 56
Total Organisational Perception Survey Results, for all
questions, for the three years surveyed. 63
Average totals, for the Training Opportunities dimension 65
Average totals for the Promotional Opportunities dimension 67
Average totals for the Development dimension 69
Average totals for the Job Challenges dimension 71
Average totals for the Working Environment dimension 73
Average totals for the Support dimension 75
Average totals for the Respect dimension 77
Average totals for the Trust dimension 79
Average totals for the Sufficient Available
Resources dimension $1
Average totals for the Relationships dimension $3
Average totals for the Pay dimension 85
Overall grand totals for the selected stores- all
dimensions analysed. $7
Turnover (Sales) by Store for Two years $8
Percentage increase in Employees Satisfaction Perception
versus percentage increase in Store Turnover $9
ix
Figure 5.11 - The Edgaus Employee Customer Profit Chain
Diagram 94
x
MST OF TA
LIES It
Table 3.11 - Edcon Sales and Trading Profit growth over ten years 5$
Table 4.1 - Employee Satisfaction Dimensions and the related
Questions analysed inn this research 61
Table 4.2 - Total Results, for the last three surveys all questions 62
Table 4.3 - Results for the Training Opportunity employee
satisfaction dimensioun 65
Table 4.4 - Results for the Promotional Opportunities employee
satisfaction dimension 67
Table 4.5 - Results for the Development employee
satisfaction dimension 69
Table 4.6 - Results for the Job Challenge employee
satisfaction dimension 71
Table 4.7 - Results for the 'Working Environment employee
satisfaction dimension 73
Table 4.8 - Results for the Support employee
satisfaction dimension 75
Table 4.9 - Results for the Respect employee
satisfaction dimension 77
Table 4.110 - Results for the Trust employee satisfaction dimension 79
Table 4.H - Results for the Sufficient Available Resources employee
satisfaction dimension 80
Table 4.12 - Results for the Relationships employee
satisfaction dimension 82
Table 4.113 - Results for the Pay employee satisfaction dimension $4
Table 4.114 - Overall Grand Total, all stores, and all dimensions
Studied 86
Table 4.15 - The increase inn store turnover versus the increase in
the employee satisfaction percentage $9
Table 5.1 - Table of results, used to calculate the correlation coefficient 91
xi
MST OF APPENINCES
APPENDIX A — Store Group Listing
APPENDIX I:, — Organisationall Perception Survey
APPENDIX C — Edcon Organisation Perception Conceptuall Framework
APPENDIX D — The Resullts Tor each store Tor each question.
xii
CHAPTER It
BNTRODUCTIION
1.1 RODUCTION
In this chapter, the researcher will develop a methodology with which to investigate the
research problem. The researcher shall introduce the problem, develop a problem
statement, as well as consider methods of solving the problem.
1.2
ACKGROUNID
Edcon's (Edgars Consolidated Stores Limited) retail chains rank first, second and third
in the Markinor survey of South African brands conducted during 2002. This was
largely due to product, location, service and continuous improvements in all three
chains. (Edcon, Annual Report, 2002).
Edcon trades in clothing, footwear, accessories, textiles, stationery and general goods in
South Africa. Edcon operates through four distinct divisions:
Edgars (incorporating ABC Shoes) is positioned as a dominant mall based
department store targeting the middle and upper income groups.
United Retail (incorporating Sales House, Jet, Smiley's Warehouse and Cuthbert's
Shoe Chain) is positioned as a discount retailer targeting the lower income groups.
SuperMart is positioned as a discount general merchandise retailer targeting the
lower income market.
C.N.A. is positioned as the dominant news agent, bookseller and stationery store,
targeting the middle to upper income groups.
When one looks closer at the retail sector within South Africa, and the economic state
of the country, the discretionary disposable income of customers has continually been
placed under severe pressure through increases in the interest rates, inflation and petrol
prices. There are also other industries, which in their own way have played a role to
reduce the consumer's discretionary income these being: cellular phones, casinos and
1
the lotto. All of these economic factors have had an effect on Edcon's bottom line.
Edcon's share price dropped from R136-50 (1998) to a low of R16-00 (1999). There
was a reduction of active customer accounts from 3 446 000(2000) to 2 860 000(2002).
In Figurel.1 and 1.2 below it is evident that the Edcon's sales growth and profit growth
declined shapely and only started to recover in terms of trading profit from 2002
(Edcon Annual Report, 1999:4, 2003:1).
Sales % Growth for Edcon Stores
89.4% 50%
45%
40%
35%
30%
tf
25%
20%
15%
10%
5%
0%
311.L'AS
28.5% 24.3% - 23.9%
20.3% 21.3%
1 2..4%
8.5% I .255
10.2% 9.8%
3.7% 2 iss 2 1 % 0.4% ri
1985 088 1987 1988 1989 1990 1991 092 1993 1994 1995 1998 1997 1998 1999 2000 2001 2002 2003
Rnancial Year
'Figure 1.1: Sales percentage growth for all Edcon Stores for the past 119 years
(Source: Edcon Annual! Report, 1999:4, 2003:11).
Profit % Growth for Edcon Stores
80%
BO%
40% 85
20%
0%
01
20%
.40%
95.0%
7%
-2-ErErch----a+9,13,S5-- 40.3%
84.6% 42.1% 46.7%
28.4%
12 2%11,0% 6.1% 9.19a
1985 1988 1987 1988 1989 1990 1991 1992 1993 1994 1905 1998 1907 8.8%
03 2000 i 1 2002 2003
- 23.0% -21.1%
30% - -4 8.2%
Financial Year
Figure 11.2: Profit percentage growth for app Edcon Stores for the past 119 years
(Source: Edcon Annual Report, 1999:4; 2003:11).
2
1.2.1 STAFF REDUCTIONS IN A COMPETITIVE ENVIRONMENT
A new CEO, Steven Ross was appointed in late 1998, after which change within the
organisation commenced with a flurry of continued restructures and the centralisation
of a few functional departments within the group. The total employees employed at
Edcon was cut from 16849 (1998) to 10766(2002). Edgars store employees were
further reduced by 36 % from 7872(1998) to 5048(2002). Considering all the changes
taking place within Edcon and the tough competitive market in which Edcon was
operating, the Researcher decided to conduct a research on the possible affect employee
satisfaction levels within an organisation could have on profits, in other words "is there
a link between employee satisfaction (job satisfaction) and corporate profit?"
1.2.2 EXPLORING SOME OF THE INGREDIENTS OF SUPE RESULTS.
Businesses that concentrate on finding and keeping good customers, productive
employees, and supportive investors continue to generate superior results (Reichheld
1996:1). Heskett, Sasser and Schlesinger (1997:11) state: "Satisfied employees are
loyal and productive employees." In other words loyalty and productivity are
ingredients to an organisation producing superior results.
"The right merchandise at the right prices would get us nowhere if our employees were
poorly motivated" (Rucci, Kim and Quinn, 1998:88). Employees play a critical role in
creating a service offering that will (over time) breed loyalty in the organisations
customers.
Sears the Chicago- based retail store explored the relationship between employee
attitude and corporate profit. The Sears employee customer profit chain model
(Figure2.4) shows that a 5-point improvement in employee attitudes would drive a 1.3
unit point improvement in customer satisfaction, which in turn will drive a 0.5%
improvement in revenue growth. (Rucci et al., 1998:91). In other words improving
employee satisfaction will have a direct / indirect effect on the profits of the
organisation.
3
Being employed at Edcon's distribution facility has allowed the researcher to work
closely with store personal and observe the effect of employee satisfaction on
productivity and resulting corporate profits. This research will explore the link between
employee satisfaction and corporate profits
1.2.3 1 10 A T1ONALE
In this research, the researcher shall extract and analyse data gathered from
organisational perception survey results and corporate financial statements, in order to
establish whether a link exists between employee satisfaction and corporate
profitability.
1.3 THE PRO ILEM STATEMENT
PROPOSAL:
The researcher proposes that there is a direct link between employee satisfaction and
the profitability of individual Edgars stores.
IPRO LEM STATEMENT:
Does employee satisfaction have a direct impact on an organisation's profits?
SUB-PRO
LEM ISSUES: I.,
Assuming that the employees understand the different dimensions contained in the
organisational perception survey questionnaire (Appendix B) and answered these
questions honestly and accurately, then the question to be asked is "How can the
organisations management impact the employee satisfaction levels?"
IPRO I.,EM ANALYSIS:
This will involve an analysis of the results of selected stores, obtained from the
organisational perception survey completed by Edcons employees.
4
1.3.11 ESTABLISHING THE IMPLICATIONS OF UNDERSTANDING THE
PROIL LEM
If a link exists between employee satisfaction and profits, the CEO, Steven Ross, can
utilise the researcher's information, obtained from the Questionnaires to:
Establish training needs for management as well as the employees within the
organisation, in order to optimise the employee satisfaction and turnover
relationship.
Decide what actions can be implemented, by management, to positively affect
the attitudes of the employees.
Measure the effectiveness of organisational changes implemented within Edcon.
Forecast future profits using the model designed by the researcher.
1.3.2 ESTABLISHING THE IMPLICATIONS OF NOT UNDERSTANDING
THE PRO it LEM
Customer impressions of a firm come from the employees who serve them when they
buy food, clothes or cars (Ulrich, Zenger, Smallwood, 1999:57). In other words, people
who manage organisations must be aware that the employees working within the
organisation interact with the customers of the organisation and as such have the
opportunity to provide a memorable service and also create a lasting perception within
the customer's mind of the service received. This staff perception could have a positive
/ negative affect on profits.
1.3.3 THE IMPORTANCE OIF THE RESEARCH
The Research will establish whether a link exists between employee satisfaction and
company profitability, for selected Edgars stores. This research will also assist Edgar's
management in their decision to spend additional funds (in terms of structures, benefits
and cultural changes) to increase employee satisfaction, and by doing so positively
affect the profits of the organisation (should the link exist between employee
satisfaction and profitability).
S
1.4 0 JECTIIVES OF TH1F, STUDY.
The aim of this research is to Analyse whether a link exists between employee
satisfaction (for the stores studied) and profitability, for the selected Edgars stores
analysed.
1.4.11 TELE OBJECTIVES OF LEI STUDY
In order to achieve the above-formulated aim, the following objectives are relevant:
Identify what is meant by "employee satisfaction" within an organisation.
Establish what factors have an impact on employee satisfaction.
Establish what is meant by "profit" and "turnover" in an organisation.
Determine how employee satisfaction could influence profit and turnover within
an organisation.
Analyse Questionnaire results completed by employees for the selected Edgars
stores, in relation to the said store's turnover and profit to ascertain whether a
negative or positive correlation exists between employee satisfaction and
profitability.
1.4.2 CONSTRAINTS
The Edcon comprises 902 stores situated nationally and in neighbouring states,
comprising 10766 employees. Due to Edcon operating through four divisions namely,
Edgars, United Retail, SuperMart and C.N.A, each with individual business strategies
and different target markets, the researcher has decided to conduct the research within
the Edgars division only. This division comprises of 166 stores within the Edcon group
and employs 5048 associates.
A limitation within the Edgars stores is that there are different groups of stores, which
are differentiated in terms of demographic area, customer base, merchandise assortment
allocated to the store and funds spent on store layouts and fittings. Due to these factors
it was necessary for the researcher to select a group of stores, who trade and operate in
the same "trading environment" with the same advantages and disadvantages. For this
6
reason the researcher has chosen the seven top Edgars stores namely, Menlyn, Sandton
City, Westgate, Cresta, Eastgate, East Rand Mall and Westville. By using these stores
for analysis the researcher is confident that all environmental trading factors
(surrounding customer base, product mix and location of store), which influence an
organisations turnover, are relatively equal and comparable. In other words the
researcher is trying to compare apples with apples, and not apples with pears.
1.5 IRIESEARCIHI METHODOLOGY
1.5.1 ARC METHODOLOGY
The Researcher has defined the research problem and aims, and now has to document
an appropriate methodology on how the research will follow.
1.5.2 LITERATURE SEARCH
The main purpose of the literature review is to show the reader how the current study
supplements the work that has already been done on the proposed research topic (Gill
and Johnson, 1997). The researcher will focus on literature and articles referring to
"employees satisfaction" within an organisation and more specifically to show how
employees could impact the "profitability" of an organisation. The researcher will also
conduct research regarding profitability and turnover within an organisation.
Further information gatherings will focus on the various factors which impact on an
employee's satisfaction and how one could change an employee's satisfaction level
within an organisation.
1.5.3 DATA COLLEC HON AND ANALYSIS
The researcher will make use of quantitative techniques in order to collect relevant
data. Qualitative data is collecting data in the form of words and pictures, and
quantitative data is data collected in the form of numbers (Neuman, 2000:33). Due to
the researcher wanting to establish whether a link exists between profit and employee
7
satisfaction, it is necessary for the researcher to use secondary data and extract the
relevant data in line with the literature review to solve the problem.
13.4 SAMPLING
The researcher has chosen seven Edgars stores on which his research will be conducted.
These stores are similar in:
Size (square meterage)
Market demographics
Product offering
This means that each store will be compared with another store within the same
group in terms of employee satisfaction and store profits (See Appendix A for a
complete store group list).
133 QUESTIONNAIRE
The researcher will make use of a questionnaire, which has been divided into different
dimensions (See Appendix B for a complete copy of the Questionnaire):
Company Identification
Work Content
Management / Leadership Style
Training & Development
Relationships
Rewards
Performance Management
Company Value / Culture
Industrial Relations
Working Conditions
Employment Equity
Communication
The Questionnaire requires the employees to answer questions on the above dimensions
with the objective of establishing how the employee perceives or feels about areas
8
within their stores and the organisation as a whole. The researcher will not utilise all the
questions contained in the Questionnaire, but rather the questions that relate closely to
factors contributing mostly to employee satisfaction, as established in the literature
review.
1.5.6 COMPARISON
The selected seven stores are all in similar trading environments (large shopping
centres) and have the same product ranges available for sale in the stores, are very
similarly shop fitted and are in the same allocation grid (Appendix A). The researcher
has for the purpose of this research, accepted that the majority of these environmental
factors (which could have had bearing on increasing or decreasing turnover between
stores) have been equalised and as such do not play a role in the comparison stage of
the research.
The researcher will collate all data collected from the selected stores and do a
comparison between the literature review and this data to establish whether a link exists
between profit and employer satisfaction within the selected Edgars stores.
11.5.7 RESEARCH GOALS
The researcher will focus on the following goals in this dissertation:
Can an organisations employees satisfaction levels impact on the profits of an
organisation?
What dimensions can management within an organisation focus on, to influence
employee satisfaction?
Highlight the common factors found in the stores with high profits.
Design a model, with which Edcon Management can use to forecast profits.
9
1.5.8 RESEARCH PROCESS
Steps in the research process.
1 The research process begins with the question "Is there a link between
employee satisfaction and an organisation's profits?"
2 Formulate what previous and current literature (articles and journals) says in
regard to the researcher's proposed questions.
3 Collect data from the selected stores, through an organisational perception
survey, and analyse this data.
4 Establish whether there is a correlation between the data collected and the stores
profit.
5 Data is analysed and interpreted so as to offer meaningful answers to the
question "Is there a link between profit and employee satisfaction?"
1.5.9 DATA COLLECTION, ANALYSIS AND INTERPRETATION
A computer will be used in this research to:
Capture results collected from Questionnaires into an Excel Database, which will be
created.
Organise data in a manner in which interpretations can be carried out.
Formulate graphical representations of the sorted data.
Incorporate the graphs into the Word document in order to analyse and discuss
these in line with current literature.
Interpret data (graphs) in a meaningful and logical manner thereafter making
recommendations and conclusions.
1.5.10 ACTION PLAN
Now that the problem statement has been formulated, the following will be done:
1 Conduct the literature review (literature search). We see that Jan Kowicz's in
Saunders states that "knowledge doesn't exist in a vacuum, and the researcher's
work only has value in relation to other people's. The researcher's work and
10
findings will only be significant to the extent that they are the same as, or
different from, other people's work and findings" (Saunders, 2000:418)
2
Gather data from Questionnaires completed by the top 7 selected Edgars stores
personnel.
3 Capture and group data, from Questionnaires and financial records in such a
manner in order to establish whether a correlation exists between profitability
and employee satisfaction.
4 Analyse the data collected in order to make inferred recommendations and
conclusions.
1.6 OUTLINE OIF THE INVESTIGATION
Fitz-enz states "management has come to accept that people, not buildings, or
equipment, are the critical differentiators of a business enterprise. The key to sustain a
profitable company or healthy economy is the productivity of the workforce, our
human capital" (Fitz-enz, 2000:1).
In other words the employees within an organisation have the ability to make the
difference and give an organisation a competitive advantage against their competitors.
The researcher will concentrate on how employee's satisfaction within the organisation
could have an impact on the profitability of the said organisation.
Chapter 1 gives an overview of the problem, and the intended course of action to be
followed by the researcher to solve the problem. The method to be used and analysis
thereof are also discussed.
Chapter 2 is the literature review (search) on what factors impact on employee's
satisfaction and how employee satisfaction would impact on the organisation's
profitability.
Chapter 3 outlines the background and organisational structure and growth of Edgars
stores and lists the change initiatives implemented after 1998.
11
Chapter 4 includes the data collected and comparing with the literature review in
chapter 2. The data from the different stores will be compared with each other.
Chapter 5 discusses the conclusions and recommendations in regard to the research
problem, linking data collected with that of literature reviewed by the researcher.
1.7 SUMMIARY
In this chapter the researcher documented the reasons for wanting to conduct the
research. The problem statement, aims and goals of the research were defined. In the
next chapter, the researcher will highlight and discuss relevant literature relating to the
research problem.
12
CHAFFER 2
ESICERATURE REVIEW
2.1 INTRODUCTION.
In this chapter the researcher will review related academic literature on employee
satisfaction:
What factors influence or have a bearing on employee satisfaction?
The importance of employee satisfaction within an organisation.
The link between employee satisfaction and profitability.
It is necessary to consult current literature in order to become aware of the latest
information on the subject.
In retailing, merchandise is very important, but service is often regarded as more
important, as satisfied customers can move an organisation ahead of its competitors. By
keeping the customer's satisfied with the service and the merchandise, an organisation
will sell more merchandise than its competitors (Parsons, 1995:86).
John Mckean, a researcher and author says, "70% of what determines which company,
customers will buy goods or services from is based on how humanely they are treated".
Mckean also observes "that if customers are treated well, they will continue to do
business with your company, even if that company made a mistake" (Ioma, 2003:4).
The primary objective of an organisation is to make a profit after taking into account
the costs incurred to sell its merchandise or offer its services. Organisations will need
employees to either sell its merchandise or provide their service. "Success comes from
delivering value to the organisations customers, and the ability to deliver value comes
from having sound conceptions of what customers want and value and how to organize
and manage people" (Pfeffer, 1998: 13).
13
It is for this reason that the researcher has decided to research whether a link exists
between corporate profitability and employee satisfaction within the seven top Edgars
stores.
2.1.1 Explloring the link between the Customer and the Organisation'.
"There is a direct link — an 80 % correlation- between how businesses treat their
employees and how they treat customers" (Ioma, 2003:4).
If this link is true, then employee satisfaction levels are crucial to ensure the survival of
the organisation against its competitors. David Furlonger reports that companies that
enter the "Best Company To Work For" competition are assessed on a wide range of
issues. These issues are: job satisfaction, rewards, management style, trust,
communication, training, change management, performance recognition and employee
welfare (Furlonger, 2002). We see from this, that employee satisfaction is an area in
business, which could differentiate it from other organisations entering this
competition.
Paul Spector states that there are two important reasons why an organisation' s
management should be concerned with job satisfaction:
o Firstly, the humanitarian perspective is that people deserve to be treated fairly and
with respect
o Secondly, the utilitarian perspective is that job satisfaction can lead to better
behaviour by employees that affect organisational functioning (Spector, 1997: 2).
2.2 EXPLORING SOME IDEIFINITIONS.
2.2.11 The Employee.
Definition 1: "A person hired by another or by a business firm"(Neufeldt and Guralnik,
1988:445).
14
Definition 2: "Someone who works for a person or business in return for wages or other
compensation"(www.a).
Definition 3: "One employed by another, usually for wages or a salary and in a position
below the executive level"(www.b).
From the above definitions it is evident that an employee is a person working for a
business or organisation in return for compensation either in the form of money or any
other mutually agreed benefit.
2.2.2 A Job.
Definition 1: "Work that someone does regularly to earn a living"(Oxford School
Dictionary, 1994:278)
Definition 2: "A regular activity performed in exchange for payment especially as ones
trade, occupation or profession"(www.c).
Definition 3: "The regular work, which a person does to earn money"(www.d).
In other words, "a job" is an activity carried out by a person employed by a business in
order to earn money to survive.
2.2.3 Job Satisfaction.
Definition 1: "The feeling of pleasure and achievement which you experience in your
job when you know that your work is worth doing, or the degree to which your work
gives you this feeling:"(www.e).
Definition 2: "Job satisfaction is an attitude that individuals have about their jobs. It
results from their perceptions of their jobs, based on factors in the work environment,
such as the supervisor's style, policies and procedures, work group affiliation, working
conditions and fringe benefits"(Gibson, Ivancevich and Donnelly, 2000:16).
Definition 3: "As a uni-dimensional construct; that is, you are generally satisfied or
dissatisfied with your job"(Lyman and Lawler, 1968).
Definition 4: "Internal Quality of a working environment contributes most to employee
satisfaction. Internal quality is measured by feelings that employees have toward their
15
jobs, colleagues and companies. In general what do frontline service employees value
most on the job?"(Heskett et al., 1997:29).
Definition 5: "Job satisfaction is simply how people feel about their jobs. It is the
extent to which people like (satisfaction) or dislike (dissatisfaction) their jobs"(Spector,
1997:2).
Definition 6: "Job satisfaction is an affective (that is, emotional) reaction to a job that
results from a incumbent's comparison of actual outcomes with those that are desired
(expected, deserved, and so on)" (Cranny, Smith and Stone, 1992: 1).
Definition 7: "Job Satisfaction is an affective or emotional response towards various
facets of one's job" (Kreitner, Kinicki and Buelens, 1999:197)
From the above definitions we can summarise the following:
Job satisfaction is linked to feelings.
Attitudes of employees play an important role with job satisfaction. These
attitudes are created through perceptions.
Internal quality of a working environment, which is measured by feelings,
contributes the most to employee satisfaction.
Job satisfaction is affected by the way employees react to a situation in relation
to the expected outcome.
All in all it can be concluded from the above definitions that job satisfaction is created
through employees feelings, which are affected by their perceptions of their jobs or
working environment.
2.2.4 Perception.
Definition 1: "Perception is the meaning ascribed to a message by either sender or
receiver. Perceptions are influenced by what people see, by ways they organise these
elements in memory, and by the meanings they attach to them. Attributes that people
bring to a situation colour their perceptions of it" (Hellriegel, Jackson, Slocum, Staude,
Amos, Klopper, Louw and Oosthuizen, 2001:319).
16
Definition 2: "Perceptions are in the eye of the beholders. The limited and tricky side of
a perception is that the individual can strongly believe in it, yet it can be
wrong"(Swanson and Holton, 1999:134).
Definition 3: "An awareness of things through the physical senses, especially
sight"(www.f).
Definition 4: "The act of perceiving or the ability to perceive, mental grasp of objects,
qualities etc, by means of senses, awareness and comprehension" (Neufeldt and
Guralnik, 1998:1002).
In other words the person observing things going on around them develops perceptions,
however the perception is totally reliant on the beholder's views, outlook and past
experience. Therefore an organisation could have two people experience exactly the
same encounter and have totally the opposite perceptions or attitudes about what they
experienced.
2.2.5 Profit.
Definition 1: "Advantage, gain, benefit, financial or monetary gain obtained from the
use of capital in a transaction or series of transactions"(Neufeldt and Guralnik,
1998:1074).
Definition 2: "Money, which is earned in trade or business, especially after paying the
costs of producing and selling goods and services"(www.g).
Profit in other words is the gain made after paying all the costs incurred to produce the
organisation's product or service.
2.2.6 Summary.
In short we can simply say that organisations employ people, who are influenced by
their perceptions. Employee perceptions affect their behaviour, and this behaviour has
an impact on the customers. All of these factors will either set the organisation ahead of
or behind their competitors.
17
2.3 EMPLOYEE SA1 ISIFACIMION.
2.3.1 Introduction.
In this section the researcher will focus on factors / issues which have an affect on
employee satisfaction. The focus will also be on benchmarking. What are the best
ranked organisations doing in regards to maintaining employee satisfaction? (paragraph
2.3.3). The researcher will also extract the most commonly used factors in surveys and
researches, by which employee satisfaction is measured.
2.3.2 IFactors / facets which have an impact on employees job satisfaction.
In the researcher's review of the current, as well as well-known theories, concerning
factors affecting employee satisfaction, many viewpoints were found. The researcher
tried to refer only to those works, which have been tested through surveys or through
organisational experience. The different theories and literature found on employee
satisfaction have been listed below (paragraph 2.3.2.1. to paragraph 2.3.2.13.). After
listing and discussing the different literature views on factors affecting employee
satisfaction the researcher extracted a summary of the most common factors, which
have a bearing on the employee's satisfaction level within an organisation. These
factors were used to establish the different dimensions identified in the problem
statement.
2.3.2.11 An attitude towards work.
Gibson (2000:106) states that job satisfaction is an attitude that employees have about
their jobs, and it results from their perceptions about their jobs, and the perceptions
result from factors in the work environment. The following factors have been listed as
having crucial consequence to employee satisfaction:
Pay - the amount received and the perceived equity of pay.
Job - the extent to which job tasks are considered interesting and provide
opportunities for learning and for accepting responsibility.
Promotional opportunities —the availability of opportunities for advancement.
18
o Supervisor -the supervisor's ability to demonstrate interest in and concern
about the employee.
o Co-workers -the extent to which co-workers are friendly, and supportive
(Gibson et al, 2000: 106).
2.3.2.2 Masllow's Theory of the Hierarchy of Needs.
One of the most widely cited and discussed motivational theories is the need hierarchy
model of psychologist Abraham Maslow. In this model, Maslow proposes that humans
have five basic needs:
Physiological: the need for food, drink, shelter, and relief from pain, the most basic
needs, and physical comfort on the job.
Safety and security: the need for freedom from threat, need to be safe, job security;
Belongingness, social and love: the need for friendship, affiliation, interaction, and
love, friendly co-workers.
Esteem: the need for self-esteem and respect for others, recognition from boss.
Self-actualisation: the need to fulfil oneself by maximizing the use of abilities,
skills, and ones potential through a challenging job (Gibson et al, 2000:130;
Kreitner, Kinicki, Buelens, 1999:185; Schermerhorn, 1996:346).
2.3.2.3 Hertzherg's Two - Factor Theory.
Frederick Hertzberg's two-factor theory was developed from a pattern identified from
responses of almost four thousand (4000) people about their work. The factors have
been divided into two "satisfier factors". Hygiene factors —dealing with aspects of the
job, and Satisfier factors —dealing with what people actually do. Hygiene issues
according to Hertzberg cannot motivate employees but can minimise dissatisfaction, if
handled properly (Schermerhorn, 1996: 347). Satisfiers on the other hand create
satisfaction by fulfilling individual needs. Hertzberg said that once the hygiene factors
are addressed the satisfier factors would promote job satisfaction (Syptak, Marsland,
and Ulmer, 1999).
19
The Hygiene factors are:
Working conditions — The environment in which the organisations employee's work
has a tremendous effect on their pride for where they work. If employees are
cramped in closed quarters don't be surprised if there is tension amongst them.
Interpersonal relations —part of the satisfaction of being employed is the social
contact it brings, ensuring that employees treat one another with respect.
Organisational policies and administration —in an organisation the policies and
administration can create frustrations amongst workers, especially if they are not
relevant to all and are unfair.
Technical quality of supervision —To decrease dissatisfaction, management must
begin by making wise decisions when employing a supervisor. Remember that not
all efficient workers will make a good leader. A leader requires the ability to lead
and guide a team, and also be able to treat all their team members fairly and
equitably.
Base wage or salary —Salary according to Hertzberg is not a factor that motivates.
But salaries, if not managed well, will add to the employee being unhappy. In other
words if a organisation's employees feel that they are not paid fairly and in line
with market related salaries they will be discontent and look for another job
(Schermerhorn, 1996: 347, Syptak, Marsland and Ulmer, 1999).
The Satisfier factors are:
A Sense of achievement — one premise in Hertzberg's theory is that most individuals
sincerely want to do a good job. To help them achieve this, one must make sure
they know exactly what is expected of them, conduct regular feedback sessions
with them to discuss their progress. The manager must be careful not to overload
individuals with tasks that are too difficult or impossible to perform.
Feelings of recognition All employees at all levels of management want to be
recognised for good work performance. Managers should take time to openly thank
these people for their achievements.
A Sense of responsibility —According to Hertzberg's theory employees will be more
motivated to do their jobs well if they have ownership of their work. This requires
giving employees enough freedom and power to carry out their tasks so that they
feel they own the result.
20
o Opportunity for advancement —Hertzberg reckons that by rewarding good
performance with advancement, this will motivate employees and foster job
satisfaction.
o Feelings of personal growth —Make employees feel that the work they are doing is
important to the organisation and ensure that the employees are shown the
importance of their tasks and how these make the organisation succeed
(Schermerhorn, 1996: 347, Syptak, Marsland and Ulmer, 1999).
2.3.2.4 Different dimensions of job satisfaction.
Michael O'Malley states, "a satisfying job has three properties:
It has intrinsically enjoyable features.
It provides an opportunity for growth and development.
It makes employees feel effective in the execution of their duties" (O'Malley,
2002: 159).
O'Malley refers to these as:
Inward satisfaction (satisfaction derived from the intrinsic features of a
job).
Upward satisfaction (satisfaction derived from technical and intellectual
growth experiences and with progress in one 's career).
Outward satisfaction (satisfaction derived from an employee's belief that
she/he can positively influence organisational outcomes).
The researcher will now elaborate on the components of each property.
L 'Inward Job satisfaction — 'Intrinsic motivational features.
Under this section O'Malley refers to satisfiers driven by the nature of the work, thus a
satisfying job typically according to O'Malley has the following components:
21
Clarity- employees know what to do as their jobs are well defined, and their
specific roles within the organisation are clear and well defined.
Interest- employees find their work to be energizing and fun, as they are
consistent with their individual interests, and have a variety of different tasks.
Discretion- employees have the ability to make decisions on factors, which
affect their jobs; they can express their ideas openly without fear of criticism.
Feedback- employees are appreciated for the work they do, they receive timely
feedback on their performance and recognition where due.
O'Malley further states that the quality of relationships with managers affects job
satisfaction as well (O'Malley, 2000: 168). "Everyone knows how much a leader's
emotional state drives performance, a growing body of research on the human brain
proves that, for better or worse, leader's moods affect the emotions of the people
around them" (Goleman, Boyatzis, McKee, 2001:44, 46).
2. Upward job satisfaction - Growth Opportunities.
O'Malley states that employees who are given the chance to develop, who are asked
consistently to increase their base knowledge and skills will be most satisfied.
Organisations who can offer employees growth opportunities greater than that of their
competitors, are more likely to be successful to motivate staff. These organisations
implement the following:
Collegiality- Having a cadre of talented, knowledgeable employees who share
enthusiasm for a vocation.
Unique Opportunities and Resources - Providing access to resources, and
technologies that are not available elsewhere is one of their hallmarks.
Specialised training and expertise- They spend time and money to keep employees
current and up to date in their respective fields.
22
Support for professional norms and standards- They convey strong expectations of
the norms and standards that pertain to their field.
3. Outward job satisfaction —personal effectiveness:
People make assessments of how effective they will be in a given situation. Feeling self
confident that they can deal with a given situation is self-satisfying. It means that they
are optimistic about their capabilities to act and react. This in other words is self-
efficacy. Put simply, people who expect to succeed do, although sometimes people's
self-efficacy is overestimated and thus they are unable to succeed because of their own
capabilities. It is important that management then creates the right spirit of expectation
amongst employees, and as such O'Mally names four possible ways to increase
employees self efficacy:
Performance accomplishments - allowing employees to succeed on their own and to
notice performance improvements that they themselves enacted, is instrumental to
self-efficacy.
Vicarious experience (modelling) - Allowing employees to observe others where the
behaviours of success are clearly evident, is another way to enhance self-efficacy.
Verbal Persuasion- by telling an employee that the organisation has a belief that
they are able to accomplish a particular task, can raise their self-efficacy. This is
short lived, as the employee must experience personal accomplishments for it to
carry more weight.
Self-management of emotional arousal- employees who are able to remain calm in
trying situations and who are able to minimise negative thoughts about their
abilities are more likely to perform better.
In other words factors which help build self-efficacy are: a manager allowing his
employees to succeed by empowering them to complete the given task; a manager
allowing employees to gain confidence in the sought abilities. This is done by allowing
a skilled employee to perform a task in which they wish to succeed in. (O'Malley,
23
2000: 158-171). Ultimately for people to feel like they can succeed they have to
experience success.
2.3.2.5 The Job Descriptive lIndex: A measure of satisfaction.
The Job Descriptive Index (JDI), according to Spector, has probably been the most
popular facet scale among organisational researchers by which job satisfaction is
measured. The scale addresses five facets:
Work- in other words the job itself. Is it a routine job, which satisfies the
individual, or is it a stimulating ever-changing job?
Pay- focuses on the current income of the employee. Is it a fair income, which
the employee deserves?
Promotion- are there promotional opportunities, or is the employee in a dead
end job?
Supervision- does the supervisor praise good work.
Co-workers- are the employees boring, irresponsible or intelligent? (Smith,
Kendall, Hulin, (1969) in Spector, 1997: 12).
2.3.2.6 The Criteria for job satisfaction: A iotechnology I =i dustry Survey.
A survey was conducted and completed by employees working in the Biotechnology
Industry. The results of this survey showed that the employees working within this
industry rated the following Human Resource areas the most important:
Personal growth of employees within an organisation.
Compensation that employees receive.
Work environment in which the employee's work.
Recognition and feedback the employees enjoy whilst working for the
organisation (www.h).
24
2.3.2.7 Job satisfaction and training.
Anthony Rucci, the Chief Administration Officer, for Sears Roebuck, states,
"employee's attitudes about the job and about the company are the two factors that
predict their behaviour in front of a customer. He further says that Sears has built a
model that says unless you have a trained, literate, motivated, competent work force,
and you give them decision making authority, you don't get satisfied customers, no
matter how good the merchandise is. The right work force creates customer
satisfaction, and that produces superior financial performance" (Stratford, 1997).
2.3.2.8 Customer satisfaction and employee motivation: Exploring the link.
Jean Gourdon, General Manager of Montreal Novotel, states that customers don't come
first, employees do. It is through this philosophy, that this hotel has earned the highest
employee and customer satisfaction ratings in the entire Accord system (for Novotel
and Sofitel brands) for the past six years and achieved a forty five (45) percent gross
operating profit in 2002. Gourdon goes on to say that his employees are empowered to
deal with customer needs and as such are extremely motivated (Gourdon, 2003:14). In
other words Gourdon is saying that if an organisations employees are given the
authority to deal with or resolve customers problems, this will impact on customer
satisfaction levels.
2.3.2.9 Employee satisfaction and staff turnover.
Mitchell, Holtom and Brooks (2001:96) states that people who are satisfied with their
jobs will stay. They evaluate their jobs in the following areas: pay, supervision, chances
for promotion, work environment and tasks they do.
2.3.2.110 Employee satisfaction and working environment.
Judy King, reports that after twenty years in the Hotel Industry, she has found that
employees, like guests, are interested in spending their time in a pleasing environment
where they have rewarding and have valuable experiences. She says that an employee
will evaluate the quality of their experience by using the following five basic factors:
25
Appearance image- are the surroundings appealing, clean, safe and well organized?
What is the reputation of this company?
Technical ability- do I have the opportunity to learn and grow here? Do the other
employees I work with know what they are doing?
Timelines/Responsiveness- do I have to wait for things longer than I should
reasonably expect?
Confidence/ reliability- can I count on and trust people in the organisation?
Warmth/personalized attention- do other people in the organisation care about me
as a person? Am I treated with dignity and respect? (King, 1999:12)
2.3.2.11 Employee satisfaction and five key indicators.
Simon and Schuster who studied 24 companies in 2500 business units and who elicited
responses from 105,000 employees, state that the following questions if answered
favourably would predict a high level of employee satisfaction:
Do I know what is expected of me at work?
Do I have the materials and equipment I need to do my work right?
Do I have the opportunity to do what I do best every day?
In the last seven days, have I received recognition or praise for good work?
Does my supervisor, or someone at work, seem to care about me as a person?
Is there someone at work who encourages my development? (Simon, Schuster,
1999)
2.3.2.12 Employee dissatisfaction and staff turnover.
Herman, CEO of the Herman group, explains that there are five reasons why employees
leave their jobs, these are:
"It doesn't feel good around here" -workers are concerned with physical as well as
cultural problems within the organisation.
"They won't miss me if I were gone" -employees are not valued enough for their
contributions.
26
"I don't get the support I need to get the job done" -people want to do a good job
and are frustrated if they have too many roadblocks like poor managers and red
tape.
"There's no opportunity for advancement" -this does not mean promotions and
raises. Rather employees are not trained and have few opportunities to learn new
skills or develop their ideas.
"Compensation" -When fair compensation is taken as its own issue, money has
diminished importance (Tuttle, 2003:63).
2.3.2.13 Profitability through people.
Pfeffer (1998: 65-96) mentions that there are seven practices successful organisations
do to produce profits through people:
Employment security- most research on the effects of high performance
management systems have incorporated employment security as one important
dimension in the description of these systems. Herb Kelleher, CEO of Southwest
airlines states that "their most important tools for building employee partnerships
are job security and a stimulating work environment" (Pfeffer, 1998: 65-67).
Selective Hiring- organisations serious about obtaining profits through people will
spend the effort to recruit the right people in the first place. The following list
summarises how to go about selecting the right people to build a high performance
organisation: have a large number of applicants; screen for cultural fit and
attitude; be sure what are the most critical skills, behaviours and attitudes crucial
for success; use several rounds of screening; if possible involve senior people in the
recruiting process; assess the results of the selection process (Pfeffer, 1998: 65-67).
Self-managed teams- organizing people into self-managed teams is a critical
component of high performance management systems. Research in organisational
behaviour shows that workers in self-managed teams enjoy greater autonomy and
discretion and this translates into intrinsic rewards and job satisfaction (Pfeffer,
1998: 65-67).
High compensation contingent on organisational performance- there is some
relationship between what a firm pays and the quality of work force it attracts. Its
one thing for a company to say that they "value their employees" but the level of
27
salaries sends its own message to employees. We see the importance of salaries in
the case where John Whitney assumed leadership of Pathmark, a large grocery
store in the Eastern United States, in 1972. The banks were under the impression
that the organisation had 90 days left to live as it was in a desperate financial
shape. One thing Whitney discovered was that 120 store managers were terribly
paid. Many of them earned less than the butchers in their stores. Whitney decided
to give these store managers a substantial raise of between 40-50 percent. The
subsequent success of the chain is (according to Whiney) because the store
managers could now concentrate on performance instead of complaining about
their pay (Pfeffer, 1998: 65-67).
Training- training is an essential component of high performance work systems,
because these systems rely on front line employee skill and initiative to identify and
resolve problems, to initiate changes in work methods, and to take responsibility for
quality. Some firms consider people to be an expendable cost to be quickly shed in
times of economic difficulty (Pfeffer, 1998: 65-67).
Reciluction of status (differences- organisations that are able to tap the ideas, skills
and efforts of their entire people, perform at a higher level. One way in which they
do this is by organising them into work groups. In order to make all employees feel
important, high commitment management systems reduce the status distinctions
that separate individuals and groups (Pfeffer, 1998: 65-67).
Sharing information- information sharing is essential for two reasons: first the
sharing of information on things such as strategy, financial performance, and
operational measures conveys to the people that they are trusted; and secondly
even motivated and trained people cannot contribute if they don't have information
on important dimensions of the organisation's performance (Pfeffer, 1998: 65-96).
In other words Pfeffer is saying that high performance organisations have employees
who have made it through a stringent selection process, are well trained and add value
to the organisation through teams in which they work. They are well remunerated thus
minimising the risk of losing key role players. They are able to add value as they are up
to date with current information regarding the organisation's strategy, financial position
and operational outputs.
28
2.3.2.14 Summary
It is clear from the above literature material that employee satisfaction plays an
important and vital role in the organisation. The researcher has listed the different
factors that have an effect on the satisfaction levels of employees within an
organisation.
Guided by the available literature and best practices in various industries, the
researcher has decided to analyse the employee satisfaction level within the
selected seven Edgan-s stores, using the following employee satisfaction factors:
Training opportunities.
Promotional opportunities.
Developmental opportunities.
Job Challenges.
The Working environment.
Support (given to employees).
Respect (for employees).
Trust (in employees).
Sufficient available resources (to work effectively).
Relationships (within the organisation).
Pay (or remuneration).
2.3.3 enchmarking: What the Most Admired Organisations are doing?
2.3.3.1 hatroduction
In this section the researcher will report what the most admired organisations (best
company's to work for) are doing to maintain employee satisfaction levels within their
organisations.
29
2.3.3.2 An Analysis of the Best Companies as identified in the Fortune 100
Magazine.
McDonald and Hutcheson (1999:19) states that companies, which are part of the
Fortune 100 Best Companies, are on this listing due to the attitude they have toward
their employees. "These companies believe the talent they can harness will make them
succeed. If employees are happier and more satisfied, they will deal more positively,
imaginatively and proactively with customers. When people bring all of themselves to
work, they are more productive. When they are happier and more satisfied at work,
they make customers more satisfied with your company, and they tend to leave less
often. The work life balance of your employee in your company is a complex,
multifaceted issue — but one that can be strategically important to the bottom line"
(McDonald, Hutcheson, 1999:19).
Robert Levering of " The Great Place to Work Institute" in San Francisco says that
"Creating a great workplace isn't all a matter of perks, but rather a great workplace is
one where people are engaged in their jobs, where there's mutual respect between
employees and management, and where people feel that they're treated fairly. Benefits
are important he adds, but they are a reflection of the underlying culture, not the cause
of it" (Levering, 1999: 1).
The review of six years of The Hay Group research shows that the most admired
companies:
Focus more on selecting, developing and rewarding top talent.
Encourage teamwork and collaboration.
Refuse to compromise their long-term objectives for short- term demands (Spreier,
Sherman, 2003: 36).
IBM's (No 8 on the All Star List) senior vice president of human resources, Randall
Macdonald states that "the workplace is a dynamic place and we at IBM manage those
dynamics closely" (Spreier, Sherman, 2003:35). Mervyn Stark, vice president of Hay
says, "what has consistently set the most admired apart, is their approach to people,
how they are led, motivated and developed" (Spreier, Sherman, 2003:36).
30
2.3.3.3 Satisfied employees are key to client loyalty and resulting financial success.
Omnicom's data shows that satisfied employees are the key to client loyalty and
financial success. With the economies declining, industries across the board continue to
make deep cost cuts in order to survive. Far to often the easiest and most efficient is to
cut employee training and development. However the organisations, which prosper in
this climate, do so because they recognise a strong correlation between employee
satisfaction, customer loyalty and growth (Watson, 2003:24).
2.3.3.4 Placing employees first.
Rosenbluth International, the giant travel management firm, where for over 25 years the
client retention rate has reached 98%, has seen revenue grow from $20 million to $6.2
billion. The CEO Hal Rosenbluth argues that "their secret is controversial, it centres
around our basic belief that companies must put their people- not their customers first"
(Watson, 2003: 24).
2.3.3.5 Paying attention to employees brings success.
SA Breweries Miller (SAB), who was voted the Best Company to Work for in South
Africa in 2001 and who came second in 2002, reckons it's because of its people that
have turned SAB into an international business. Adami, chairman of SAB Miller states,
"There is no formula for running a business, but one thing that has been successful for
us, is that we have always paid a disproportionate amount of attention to people
practices. It's in our DNA." (Furlonger, 2003).
2.3.3.6 Summary
The researcher listed examples of what identifies the most admired organisations from
other organisations within their industry. The single most important factor is the value
these organisations place on their people by putting employees first.
31
SeMce Salsa Staff Delivery Product
2.4 WHY EMPLOYEE SATISFACTION IS SO IMPORTANT.
2.4.1 Introduction
In a study of a service business (Miller and Dess, 1996:227) nearly 60 percent of repeat
customers cited the past satisfaction they had experienced with the organisation they
had dealt with, as being the primary reason for continued purchase in the future. Based
on widespread experience, consultants at McKinsey & Company concluded that only
52.5% of the total customer satisfaction with a product can be traced back to the
product itself; the remaining 47.5% consists of how the customer perceives their
experience with the organisation to be. This is made up of various facets including, the
sales staff performance and the delivery of the said service. In other words how well the
customer rates the shopping encounter with the organisation is dependant on how they
were treated (Miller and Dess, 1996:224). Figure 2.1 depicts the different sources of
value a customer places on a product when doing business with the organisation. This
further highlights the importance employee's play in the sales experience of a
customer.
'Figure 2.t Relative Importance of Different Sources of value experienced by
customers (Miller and Dess, 1996:227).
Peter Hutton, MD for Mori, argues that when an organisation builds a brand, it actually
builds a relationship with a customer. The brand is only as successful as the people
behind it, those who are entrusted with identifying, meeting and if possible, surpassing
32
Employee:
Productivity of Output Quality of output
Customer Value Equation =
esutts + Process Quality
Price + Customer Access costs
Customer Satisfaction
Customer Loyalty
Loyalty
Satisfaction
Capability
Revenue Growth
Profitability
Els eats of the Se ice Profit Chain.
customer expectations. In other words how an organisation treats and develops their
employees will have a direct bearing on the way these employees treat the client.
(Hutton, 2001:4).
The researcher has shown what an important role employees play within an
organisation. The Service Profit Chain maintains that there is a direct and strong
relationship between profit, growth, customer loyalty, customer satisfaction, the value
of goods and services delivered to customers, and employee capability and satisfaction
(Heskett, Jones, Sasser, Schlesinger, 1994:164; Heskett et al, 1997: 11).
2.4.2 The Service Front Chain
Customers don't buy products or services. They buy results. The quality of the
processes for delivering results, including the attitude of those in direct contact with the
Customers, is important (Heskett et al., 1997: 17). These relationships are evident in
figure 2.2 below. It is important to note that value is a central principle in the Service
Profit Chain.
Figure 2.2 Service Front Chain (Illeskett et all, 11997: 19).
33
Prat increase resulting from 5% point increases in Customer Loyalty, Selected service industries.
Average increase for industries studied
Software
Indusrtrial laundry
Indusrial distribution
Insurance brokerage
Credit insurance
Credit Card
Branch bank deposits
Auto Service chain
0
149
135
145
145
150
125
175
185
130
20 40 60 80
100
Percentage Increase in customer Value
2.4.2.11 Customer Royalty drives profitability.
For many years managers have being trying to pursue the Holy Grail of becoming
number one in their industry. Heskett et al. (1997:21) concluded that customer loyalty
is a more important determinant of profit than market share in a wide range of
industries. Reichheld estimates that a 5% increase in customer loyalty could produce a
profit increase of from 25% to 100% in service industries they studied. This was
calculated by comparing the net present values of the profit streams for the average
customer life of current defection rates, with the net present value of the profit streams
for the average customer life at five percentage point lower defection rates (Reichheld,
1996: 33).
Figure 2.3 Profit increases resulting from a 5% increase in customer loyalty
(Reichheild and Sasser, 1990).
From Figure 2.3, it is evident that the average increase in the profit across the industries
studied is a 49% increase in profit with a 5% increase in customer loyalty.
34
The following example indicates the power of customer loyalty:
"A lady returned from Pittsburgh where she had been on a business trip. She was
staying in a hotel on the outskirts of Pittsburgh, but was not sure how to get to the
offices of the company she was scheduled to visit. On the morning of her appointment
she went to the hotel's front desk to for directions. The young lady working there said
that she had a general idea where the company was located but did not feel
comfortable giving directions. She did not stop there, she went into the back office and
summoned one of the night shift clerks who was about to leave for home, and who also
lived near the company the lady needed to visited was situated. The clerk said he could
draw a map, but it was tricky so he offered for the lady to follow him, as he would make
sure she found the company. The lady was so overwhelmed by the hotel employees
concern that she had commented, what a great hotel it was" (McCarthy, 1997:42).
2.4.2.2 Customer Satisfaction Drives Customer Loyalty.
Heskett et al (1997:23) state that the relationship between customer satisfaction and
loyalty is not a constant relationship, as short-term competitive price reductions have
the ability to persuade or lure very satisfied customers away. In a study conducted by
Express Travel Services, in trying to link customer satisfaction directly to branch
profitability, it was established that those offices that deliver the fastest, most accurate
ticketing are also among the most profitable (Heskett et al., 1997:23)
Ken Bernhardt, a professor from Atlanta's Georgia State University, measured the
relationship between satisfaction and profit in a study in a fast food chain. After
studying more than 340 000 customers and 3000 employees over four fiscal quarters he
found what he was looking for. He concluded that restaurants with rising customer
satisfaction showed above average growth in profits, and employee satisfaction was
important to building customer satisfaction (Murphy, 1997).
A Pittsburgh based bank reported that by them improving customer satisfaction and
retention on a branch by branch basis, the company was able to forecast as much as
20% annual profit growth. DiCostanzo, the Vice President says "we believe that both
customer and employee satisfaction affects profitability" (Murphy, 1997).
35
Satisfied customers are loyal customers who purchase repeatedly from one retailer and
recommend stores to others. Retailers have learned that it costs a lot more to attract a
new customer than to keep a loyal customer, and also 80% of the profit comes from a
20% of the customer base (Parsons, 1995:86).
Arthur Andersen's study on 30 of the world's leading retailers showed the following:
It typically costs fifteen times more to attract new customers than to retain existing
customers.
Companies with loyal customers may earn a premium of up to 9% more than
companies that have poor customer satisfaction.
Recommendations from customers could account for up to 60 % of sales.
A 5 % increase in customer retention can increase profits by twenty five (25) to
forty (40) percent (Parsons, 1995: 86).
2.4.2.3 Value Drives Customer Satisfaction.
Customers today are strongly value oriented. They seek results and quality service
processes that far exceeds the price they pay to acquire the product or service. At
Southwest Airlines they implemented a ticket free service, where all their customers
needed to do was charge their reservations to their credit card and obtain a confirmation
number from the Airline, present these along with some identification at the gate and
then board the flights. Within days Southwest ticket sales where up 15%, Ticketless
flying has apparently added to the flying experience with Southwest Airlines. "A
positive, enjoyable experience can lead to high customer loyalty and repeat purchases
over time" (Dawson, 2002).
Customers expect more, whether it's better quality, quicker delivery, or lower costs, or
all three. The Internet has collapsed the cycle time from weeks and months to days and
hours. Nobody's willing to wait anymore. If they can't get information or satisfaction
from the employee they contact, they will switch companies. If the product or service
doesn't meet their requirements they will switch companies (George, 2000: 58).
36
2.4.2.4 Employee Productivity Drives Value.
At Southwest Airlines 86% of the employees are unionised. This does not stop the
employees from working in all areas of the business to optimise service value to
customers. It would not be strange to witness pilots assisting with luggage to ensure
that a plane falling behind schedule leaves on time. This flexibility allows Southwest to
board more passengers than anyone of its competitor Airlines. It is able to deplane and
deload its planes in an average of 20 minutes against an industry average of 40 minutes.
This affords Southwest the ability to turn its planes around faster, thus increasing its
asset usage and also increasing its turnover whilst keeping its employee numbers way
below industry norms. Southwest served 50% more passengers per employee than the
second ranking airline on this measurement (Heskett et al., 1997: 26).
2.4.2.5 Employee Satisfaction drives Loyalty.
Customer satisfaction is linked to employee satisfaction. Customer satisfaction
increases customer retention and employee satisfaction. (Parsons, 1995:86).
More recently the research of the service profit chain was extended to a regional bank.
Here they investigated the relationships more fully across the entire service profit
chain. The found that customer satisfaction and employee satisfaction have a clear
relationship, and that it is possible to relate customer satisfaction to customer loyalty
and to retention. Their main findings were: customer loyalty and customer satisfaction
is positively correlated with profitability; cu stomer satisfaction is positively correlated
with customer loyalty; employee satisfaction is positively correlated with customer
satisfaction; employee satisfaction is positively correlated with stated employee loyalty;
and internal service quality is positively correlated with employee satisfaction
(Loveman, 1999).
Jack Deal owner of Deal Consulting, suggests that employees are becoming the
competitive advantage for business in the world today, and he suggests the following
keys to keeping the best employees (creating employee loyalty):
37
Pay- offer a competitive salary or wage for the position. If a organisation offers
a below market rate salary it will only attract the worst of the employee pool;
Training- good employees know they must be continually learning and
improving their skills. Don't forget to cross train so they can learn other skills
in the organisation;
A career plan- this will help the employee set their long-term goals. If the
business can help the employee reach these goals the employee will become
more loyal;
Evaluation and reviews- should be held regularly in order to review progress
and set goals, and also to address any problems or concerns;
Recognize good work-good employees expect to be told when they do good
work
Develop good working conditions- good employees expect the employer to
make constant improvements so that the workplace is safe and pleasant (Deal,
2003).
2.4.2.6 Employee Satisfaction is linked to ffnternall Quality of work life.
Internal quality is measured by the feelings employees have towards their jobs,
colleagues, and companies. The Internal quality of a working environment contributes
to the most to employee satisfaction. In other words it is what employees value most on
the job. We see that at Southwest airlines employees make the decisions about the
customers, and only if they feel uncomfortable about a possible individual would they
involve their supervisor. Employees at Southwest with more than a year's service are
actual owners of the company, with Southwest's profit sharing scheme. This make
them think carefully around issues relating to customers and also lead to incredible
customer service (Heskett et al., 1997: 29).
2.4.2.7 Implementation of The Service Profit Chain.
Sears Roebuck and Company, is an example of an organisation that has implemented a
service profit chain model in their organisation and has radically changed the way it
does business, transcending from big losses to big profits (Rucci et al., 1998: 91).
38
In 1992 Sears was running at a loss of $3.9 billion on sales of $52.3 billion (Rucci,
1998). A new CEO, Arthur Martinez, was appointed in 1992 to head up the
merchandising group. He undertook a streamlining of the business. Closing 113 stores,
divesting from the non-core Sears business units and also closing the 101 year old
catalogue. Store operations were re-engineered with a heavy emphasis on training.
Martinez set up task forces to define world-class status in each specific area: (a)
customers; (b) employees; (c) financials; (d) performance and (e) innovation. The value
task team gathered 80 000 employee surveys and came up with the following six core
values that Sears people felt strongly about: honesty; integrity; respect for the
individual; teamwork; trust; and customer focus. After months of observation and
interviews it became apparent that the organisation needed a model to show direct links
from employee attitudes, through to customer satisfaction, through to profits. Sears
needed to know how management action, such as investment in sales force training,
would directly translate into improved customer satisfaction, retention and higher
revenues (Rucci et al., 1998: 91).
Whilst the task teams were busy gathering data Sears set an additional group to revise
their vision. The vision for Sears was changed to, "Sears a compelling place to work to
shop and to invest". Sears model was built using data from 800 stores, 20 customer
measures, 25 employee measures and 19 financial indicators by store. The results of
Sears model showed direct casual links between employee measures, customer measure
and revenues. Total profit indicators for the company could be established. Employee
attitude towards the job and company were found to be critical to employee loyalty and
behaviours towards customers, whilst customer impression directly affected customer
retention and the likelihood of recommendations (Rucci et al., 1998: 91).
The model showed that an improvement in employee attitudes will drive an
improvement in customer satisfaction, which will in turn drive revenue up (Rucci et al.,
1998: 91).
39
A COMPELUNO PLACE TO SHOP A COMPELUNG PLACE TO INVEST A COMPELLING PLACE TO WORK
Helpfulness
Attitude about the
"ob
Rotum on assets
onmviasmatah, Re nue Bras h
Customer recommendations
Customer impression
Si
Employee retention
( ustomp retention
1
IMPRESSION GROWTH
DRIVERS
I> 0. 0.5 % INCREASE 5 UNIT INCREASE IN 1 .3 UNIT INCREASE EMPLOYEE ATTITUDE IN CUSTOMER IN REVENUE
DRIVERS
Employee behavior
Figure 2.4 The "Sears", Emplloyee-Customer-Proffit Chain Modell
1998:91).
ucci et all., Is
Rucci reports that Sears had to let sales associates know that not only the customer
mattered but they mattered too. They needed to change the perception and attitudes of
the employees, and focus every individual's attention on their behaviour in front of the
customer. "The right merchandise at the right prices would get us nowhere if our
employees were poorly motivated" (Rucci, Kim and Quinn, 1998:88). In other words
the employee is the link between the organisation and the customer. As we can see
from Figure2.4, the customer's satisfaction (impression) of the merchandise purchased
is not only dependant on the merchandise but also on the "service / helpfulness" of the
sales associate servicing the customer.
2.4.3 The Financial Impact that employees have on an organisation.
2.4.3.1 The Cost of turnover.
According to Fitz-enz an organisation experiences additional costs due to staff turnover
or lack of retention, these being:
1. Termination- someone has to process the departing staff member, this person must
be taken off the payroll and any security lists, company property, badges and keys
must be collected This must take a few hours, and in total the cost is very high in
staff time to process the termination.
40
Replacement- in most cases the departing employee must be replaced, the cost
varied between $1100 to $9000 per employee, with $9000 being the average.
Vacancy- assuming all jobs in an organisation add value, each day that a job is
vacant is a loss of revenue to the organisation.
Productivity - new employees are seldom as productive as departing employees, so
there will be a period where there is a decrease in performance / output until the
new employee reaches the accepted level of productivity in line with the work
standards (Fitz-enz, 2000: 105).
2.4.3.2 The Customer Employee link.
No organisation can build customer loyalty unless the employees who interact with
customers are willing and able to put forth the effort that underlines exemplary
customer service (McCarthy, 1997: 46). In other words if a firm wants its customers to
be loyal they will have to instill in their employees the right attitudes so that they are
willing to make the commitment to the customer.
Sam Walton, CEO for Wal-Mart, states that "the way management treats the associates
is exactly how the associates will treat the customers, and if the associates treat the
customers well, the customers will return again and again, and that is where the real
profit is" (Pfeffer, 1998: 293).
Richard Branson, founder and owner of Virgin Records and Virgin Atlantic Airlines
had the following to say about his employees, "We know that the customer satisfaction,
which generates all important recommendations and fosters a repeat purchase, depends
on high standards of service from our people. And we know that the high standards of
service depend upon having staff that are proud of the company. This is why the
interests of our people come first. In the end the long-term interests of the shareholders
are actually damaged by giving them superficial short term priority" (Pfeffer, 1998:
293).
Employees have the ability to either create the right impression in the minds of
customers. They can expect continued support from this customer and also hopefully
41
155
66---72__79 87 92 96 99
L103,1106 j1117'11-6-)120,=124-,W0d1 371;142, (14-8,
I
I 11
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20,
-80
161
pubilid111111 11 I I 1 I
I I I
Customer Lifecycle Profit Pattern In the Credit Card industry
Age of the Account (Years)
200
150 tc.
100
c. 50
c 0 48
-50
-100
good recommendations, both of which will add growth and revenue to the organisation.
Figure 2.5 below shows the life cycle profit pattern in the credit card industry,
highlighting the lifetime value a customer has to an organisation. In this profit pattern
the following factors have been taken into account: acquisition cost of the customer;
base profit, revenue growth, operating costs, referrals and price premium.
Figure 2.5 Customer Ilill'ecyclle profit pattern in the credit card industry.
(Reichheld, 11996:M).
We observe from Figure2.5 that the cost to acquire the new credit card customer is $80.
Obviously the longer a customer remains loyal to the organisation the more profit they
will generate. We see that a customer, who stays two years, will make a net profit of
$26 (this is the income for the first two years less the acquisition cost, i.e.$106-$80). A
customer who remains loyal for five years will generate $264, and ten years $760. It is
important to note that the $760 is the future value of money, which is less than the
present value of money (Reichheld, 1996:51).
2.5 SUMMARY.
In this chapter the researcher reviewed literature on what factors influence the
satisfaction levels of employees within the organisation. The researcher further
documented what the most admired organisations are doing to maintain employee
42
satisfaction. The importance of and impact employees have on an organisation was also
explored. The researcher extracted a list of the most common factors by which
employee satisfaction should be measured in an organisation. These factors will be
used in this research in trying to solve the problem statement. The research has already
indicated that there is a close correlation between employee satisfaction and customer
satisfaction (and resulting company profitability).
43
CIHEAFTER 3
ACKGROUND: ORGANISATIONAL HISTORY AND
GROWTH OF EDGARS.
3.1 11N11101DUCIIION.
The story of Edgars Stores Limited spans three quarters of a century of diversification
and growth. From a modest beginning in a single basement shop selling women's
fashion, to being ranked first, second and third in the Markinor survey of South African
Brands conducted during 2002. Over the past 72 years, the company has grown to 902
stores and now boasts the largest online apparel offering of any of South African
retailer (www.edcon.co.za).
The company was a subsidiary of South African Breweries from 1982 until January
1999. In June that year the Edgars Group, previously known as Edgars Stores Limited,
began trading on the Johannesburg Stock Exchange as Edgars Consolidated Stores
Limited. It listed as Edcon in the retail sector, a name that more accurately reflected the
function of the Group. The Edcon Group comprises of the following business units:
Edgars, Sales House, Jet, Cuthberts, ABC, Smiley's, Supermart, CNA and the
Manufacturing Division (www.edcon.co.za ).
In January 1999, Edgars was in the doldrums. Its share price had slumped to an all time
low of R16 which was 81% less than that of March 1998 of R85.20, and this in turn
was a decline of 50% from the high of R170 in 1996. Staff morale was dismal due to a
crippling strike and wage dispute. To top it all, Edgars' top line earnings released in
March 1999 had declined by 63% despite achieving the highest sales in its history. The
group had spent on average three to four times the advertising spend, measured as a
percentage of sales. Despite this huge advertising investment of 8203 million, reported
sales growth had barely kept pace with inflation (www.edcon.co.za ).
44
3.2 EARLY
EGINNOIGS — A
REEF HISTORY OF 1111:111E EDCON GROUP. IL IL
Morris and Eli Ross opened their first store on the 6 th of September 1929, in a basement
in Joubert Street, Johannesburg opposite Greatermans. Morris and Eli Ross were
among the earliest pioneers of the Rag Trade. The first Edgars store was originally
known as M&E Ross, trading as Edgars. The name Edgars was derived from "SWAN
& EDGAR" of Piccadilly, London (www.edcon.co.za ).
During the spring sale of 1929, Eli Ross overheard Dot Kent (the manageress)
struggling to sell a costume (that has been marked down to 4 pounds) to a customer.
The customer liked the costume but only had 1 pound to spend. Anxious to dispose of
his stock before moving to new premises, Eli Ross impatiently burst forth "All right
Miss Kent, let her have it, but she must bring us something each month until it is paid
for". Thus began what was to become the largest retail credit operation in the country.
This was a marketing tool spontaneously spawned, which is today responsible for
3 299 000 active charge accounts in the Edcon Group (www.edcon.co.za ).
Eli Ross closed the Johannesburg store and moved to Cape Town where he opened
another business and again traded under the name of M & E Ross. Morris went
overseas at that time and founded Smartwear of Regent Street (www.edcon.co.za ).
In 1935 Sydney Press started working in Eli Ross' Cape Town store as a Christmas
casual. He had just written his matriculation at SACS and had achieved a first class
pass. Sydney Press was born in 1919 in Namaqualand. He became so fascinated with
retailing that despite a scholarship to attend Cape Town University, he decided to
remain at Edgars after his vacation. In 1937, Eli Ross purchased 81 Elloff Street for
500 pounds, as Sydney Press now had the necessary experience, he was to open the
branch in Johannesburg. In February of 1937 Sydney Press opened Edgars Eloff Street
and was so encouraged by the success achieved that expansion began along the reef.
In the last quarter of 1937 branches were opened in Germiston, Benoni and Springs —
then in Durban and Port Elizabeth (www.edcon.co.za ).
Sydney's brother, Hubert Press joined Edgars in 1940 and successively took over credit
control, retail admin, accounting and finance. After the war, Sydney Press's elder
45
bother, Basil, took charge of the mail order division. Basil later became responsible for
the Development Division. By 1946 there were 10 stores in the group with an annual
turnover of 536 000 pounds (www.edcon.co.za ).
At this stage a public company was floated on the Johannesburg Stock Exchange
known as Edgars Stores Limited and the directors were Sydney Press, Hubert Press, Eli
Ross and Alan Leon. Up to this stage only ladies fashion had been sold in these Edgars
stores. After the flotation of the company, the following product ranges were gradually
introduced in the Edgars Stores: menswear; childrenswear; footwear and then onto
piece goods, Manchester and jewellery. Eli Ross played an active role in the business
until 1950 and passed away in 1960. Hubert and Basil Press contributed significantly to
the development of the Edgars group, which had an annual turnover of R40 million by
1969, the year in which they both retired (www.edcon.co.za ).
3.3 GROWTH IN THE EDCON GROUP.
During the early years growth was rapid but largely spontaneous and unplanned. It was
only until the late 1950's that the increased size and sophistication of the market place
brought about the customer boom of the 1960's. The keen competition of rival
businesses necessitated the adoptions of the scientific approaches to management that
characterizes the Group's activities today. The founding Chairman, Sydney Press was
quick to recognize the principles of "customer sovereignty" as well as the vital
importance of a highly motivated workforce. The philosophies has been part and parcel
of Edgars "modus operandi" ever since (www.edcon.co.za).
Adrian Bellamy, who became Managing Director of the Edgars group in 1977 at the
age of 35, was to succeed Sydney Press as Chairman after Edgars became part of the
giant South African Breweries conglomerate on the 14 of February 1982. On 31 August
1978 the honourable SP Botha, the then Minister of Labour, officially opened
Edgardale (Edgars group corporate headquarters), which was designed to project the
company well into the 21 gt century. The headquarters are situated on the old mining
land from whence the momentum for growth of the South African economy originated.
The site is at Crown Mines in Johannesburg, and has excellent access to the freeway
system near the Crown Mines interchange, at the southwest edge of the Johannesburg
46
CBD. The complex is situated in the township of Selby extension 12, 13 and 17.
Included in the township design was a 1,2-kilometer township road, which provides
immediate access to the Main Reef Road and the Johannesburg Motorway network.
The township road has aptly been named Press Avenue. The complex was development
at a cost of R28 million and it is made out of three floors of 12 000 m 2 each
(www.edcon.co.za).
On the 14th February 1982, The South African Breweries (SAB) announced that it had
acquired 88% of Edgars Consolidated Investments Limited (Edcon) and that it would
be making an offer for the remaining 12%. Since Edcon owed 50% of the ordinary
issued capital of this company. The SAB investment effectively meant that Edgars
Stores Limited became a subsidiary of SAB. Sydney Press tendered his resignation
from the corporate board in March 1982 after 47 years with the company and died in
May 1997. The Press Empire consisted of 430 stores. Other businesses within Edgars
were Jet, Sales House, Ackermans and three Ceirose factories. To cater for continued
demand, Ceirose, the group's clothing manufacturing operation, installed a fully
automatic fabric cutter in its newly commissioned Production Services Centre. This
was the first installation of its type in South Africa (www.edcon.co.za ).
Edgars, Sandton City opened with record first day sales on 24 March 1983. This full
line store achieved international recognition when it was selected the Grand Prize
Winner in an international store design competition sponsored by the New York based
National Retail Merchants Association and the Institute of Store Planners
(www.edcon.co.za).
Mr. Bellamy's dynamic management style stood the group in excellent stead, driving
the transition into the highly competitive and sophisticated market place in the 1980's.
Mr. Press has added scientific management techniques appropriate to the sound
entrepreneurial foundation laid over many years. The result was a successful retailing
formula that has given Edgars the blue chip status it continues to enjoy
(www.edcon.co.za).
Following the Wiehann Commission in 1982, Edgars Stores Limited was the first
retailer to establish a formal recognition agreement with a Trade Union. Edgars Stores
47
Limited was selected as one of South Africa's top 100 companies in 1988. A
devastating Union strike in 1990 over wages lasting two weeks saw the loss of sales to
Edgars of 13 million rand (www.edcon.co.za ).
The granting of credit facilities has been fundamental to the success of the Edgars
group, which by March 1992 had a record of 2,5 million current accounts. In
September of 1995, after extensive testing, both Edgars and Sales House introduced an
extended credit option (from six months to 12 months), to those customers whose
payment performance justified it, and to new customers with comparable score cards.
The extended credit option was financed by Nedcor Bank Limited, with 550 000
customers operating these accounts by the end of the year (www.edcon.co.za ).
In 1996 six new concepts were developed and extended. These concepts were Red
Square, The Issue, Starting Block and Studio Quattro, and this was followed later by
Accessories. Red Square was the most advanced cosmetics retailing operation in the
world. By March 1997 there were twelve stand-alone units and as many in the Edgars
stores. The denim business was redeveloped into the Issue and Denim Station formats.
Starting Block was an advanced and highly professional format for active clothes and
footwear. Studio Quattro was the new jewellery concept based on a Dutch model.
These new concepts added a new dimension to retailing. The best place to see all these
concepts together was in the Sunnyside Park Centre store, in Pretoria
(www.edcon.co.za).
The company's computer system changed with time too. Plans were started in 1996 to
move away from in-house developed software to flexible package solutions, and for a
migration to distributed processing on modern hardware platforms. Nautilus (a
distribution package) was already operating while Arthur 4 (a merchandise planning
tool) was to be utilized in early 1999. Vantage (an aid in database marketing) was being
tested. Oracle Financials and Human Resource Management systems were introduced
in October 1998 followed by Vision Plus (state of the art debtors management package
system) in February 1999. An integrated data warehouse supported all these new
packages (www.edcon.co.za ).
48
3.4 IMEIPLEMENUNG CHANGE.
3.4.1 1998: A Most concerning year for Edgars.
The first signs of a decline in the Edgars group was seen in 1997 but accelerated in
1998.The group was in a situation were large numbers of people were turning away
from credit and fashion, which has always been an area which the business excelled at.
People considered their debt levels to be excessive and there had been a shift in values,
at least among a significant minority of customers, who has demonstrated their
readiness to sacrifice some quality and quite a lot of fashion in exchange for lower
prices. The Edgars response to these changing circumstances was not always as agile as
what it should have been. Although the lower price "value ranges" were expanded in
several parts of the business, the action was not aggressive enough and in some cases
needed to have been taken sooner.
The new CEO (Steven Ross) was appointed in the second half of 1998 to turn the
Edgars group around and lead it into the future. Steven saw the difficulties within the
group as opportunities. In his first Chief Executive report in 1999's Annual Report he
said that "it is the identification and maximization of these opportunities and a return
to historic profitability levels, coupled with the creation of shareholder value, that are
now to be the business of the company" (Edcon Annual Report, 1999:10)
At the end of 1998, several significant structural changes took place within The Edcon
Group, to correct past inefficiencies and allow the organisation to be more responsive
to market conditions, and to focus on pricing pressures. The following departments
were centralized: Finance; Marketing and Human Resources. Information technology
was outsourced to Andersen Consulting and Persetel. The measurement across the
group on stock allocation and management were equalized, implying that all of these
employees would be measured equally and fairly. In February 1999 SAB unbundled
their interest in Edgars shares, and thus Edgars had no controlling shareholder anymore.
A downsizing and reorganisation exercise within the group meant that 1594 employees
were retrenched which left an unsettled feeling within the group. This situation was
further aggravated by another month long national union strike over wages and working
49
conditions, resulting in a reduction of budgeted profit by 30 million Rand, contributing
to the 43.99% reduction in trading profit reported to March 1999 (www.edcon.co.za ).
The new human resources department formulated a new communication plan, which
would ensure that all associates were up to date on their customers, merchandise and
company. This was the first step in the culture goal of "treating all associates as
family". In order to ensure that customers felt welcome and that they were well served,
the Human Resources department was tasked with a number of critical issues, which
affected staff satisfaction and ensured that they are all treated fairly. These included
induction, training, career development, salary performance measurement, labour
relations and affirmative action (www.edcon.co.za ).
3.4.2 1999: A year of positive change within Edgars.
The Financial year-end 2000 saw a harvest of 10% growth in sales and a gross profit
increase of 15 %. This could be accounted to the change process implemented early in
1999, and other factors which included an improved level of service, transaction times
being reduced and measured customer satisfaction levels having been increased. The
Group reset its strategies for its different brands (chains), with specific focus on correct
pricing for the selected target markets for each chain. During the year, policies and
procedures were aligned for the whole Edcon family. A competency-based approach to
human resources was communicated and accepted by all staff Competency and
delivery against predetermined goals drove promotions, pay increases, incentive
payouts, share allocations, training, succession planning and in irretrievable cases,
dismissal.
Edcon decided to name the year 2000 "the year of the employee" within the group to
show the importance the group places on its employees. The Group asked the
employees to nominate representatives to sit on the "Employment Equity" committee,
as the group recognized that they needed to comply to the Employment Equity Act, as
set down by legislature. During 2000, Edcon published an in-house newsletter "Edcon
Vibe", to ensure that all employees knew what was happening within the organisation.
Furthermore video recordings with update briefings from Steven Ross about progress in
the Organisation, were sent to all stores and an in store radio station was installed
50
through which training and other communication materials can be disseminated. Edcon
was able to reach a two-year wage settlement agreement at the national forum, which in
South Africa's unstable labour market was a huge win. A total of R9 million was spent
on training the employees of Edcon that year. All staff were either offered the option of
joining a cash bonus incentive scheme or a share option scheme, both being
performance based. The staff compliment decreased by 754 employees.
3.4.3 2000: A difficult trading year for Edgars.
With Edcon Trading in an already cramped retail market, and with competitors jostling
for a share in the market, successful retailers can only target the market share of
competitors to improve their own share. During 2000 consumers discretionary income
fell due to rising fuel prices, high food inflation, having to spend more on security and
medical fees, due to government spending less in these areas, the launch of a state
lottery, and the cellular industry also claimed their piece of the market disposable
income (Edcon Annual Report, 2001:6).
The market insight gained into the segmentation of Edcon's target markets, through
extensive research, supported Edcon's decision to segment the business into two
differentiated channels.
3.4.3.1 Segmenting the business into two different channels of distribution.
The two different channels were: Edgars a mall based department store servicing the
higher income segments; and United Retail (Jet, Sales House, Cuthberts and Smileys
Wearhouse) a discount speciality store targeting the lower income segments. With all
this in mind Edcon's trading profit for the year was R319 million against the previous
financial years R429 million.
Human Resources vision was to " create a compelling place for the employee", and this
was based on the understanding that the staff were as cardinal to the business as were
the customers. This required that the same consideration needed to be given to the
customers needs as to the employees. The Human Resources departments project to
structure Edcon's "skill and knowledge base through profiling" was completed during
51
2000. This staff footprint (portrait) at all levels would provide an invaluable tool in
HR's holistic approach to developing effective and responsive people management
skills. The groups mission as "An Employer", in the 2001 Annual report was:
To regard and treat our people as family.
To provide the tools, training and opportunity for our employees to develop as
individuals and provide for their families (Edcon Annual Report, 2001).
3.4.4 20011: A year of consolidation.
Edcon declared that the programme to revitalize the organisation had been completed.
The following programme initiatives having been successfully implemented:
Repositioning Edcon's brands (Edgars and United), based on exhaustive
customer research.
Regaining profitable clothing, footwear and textile (CFT) market share,
through improved customer service and value-for-money offerings.
Consolidating all back office support functions through greater
centralization and more productive use of technology.
Cleaning up the debtor's book, through improved collections and tighter
credit granting controls.
Enhancing space utilization, by rationalizing the number of stores and
introducing selective multi-branding.
Raising productivity, through an enlightened and motivated human
resource strategy.
The Group achieved a 2% increase in sales growth for 2001, with a reduction of 5% in
Group's retail space. The Trading profit was R325 million and the earnings per share
rose by 42% to 302,9 cents per share. With the Edcon store space rationalisation plan in
place, this meant the Edcon opened 22 new stores, created 152 new facias, closed and
handed back to landlords 127 outlets and 25 stores were revitalised.
Edcon's vision of "Our employees are as significant to our business as our customers
are", motivated the HR department to create an inspirational work environment for all
52
staff. Edcon strived to be known not only as a company that sells superior merchandise
and delivers phenomenal service, but also a company that everyone aspires to work for.
Edcon reported in their Annual Financial Report (2001/2002) that their objectives were:
Equity in the work place.
Fulfilled and competent staff.
To be an employer of choice.
An environment that enables the company to achieve business success through
its people.
Best Practice in people management.
As part of the group's strategy of becoming an employee of choice, Edcon decided to
centralise the recruiting function, aiming to attract the best possible talent. Staff
attended a total of 13291 staff training days during the financial year 2001/2002. All
associates, working for Edcon, completed the group's first Organisational Perception
Survey, during 2002, the purpose of the survey was to determine:
Whether employees understood the company values or culture.
How satisfied employees were.
3.4.5 2002: A record year in terms of profitability and sales growth.
Edcon realised a record year in 2002/2003 with the following highlights:
Headline earnings of 753 cents per share.
Sales growth of 24%.
The successful securitisation of the accounts receivable. This transaction
generated net proceeds of R798 million, which was used to reduce the interest
bearing debt, fund acquisitions and buyback of 5 882 044 shares.
The acquisition of 151 C.N.A stores for R130 million, which furnished R850
million turnover to the group. C.N.A, founded 105 years ago is the largest
newsagent, bookseller and stationery store in South Africa.
The purchase of Super Mart, a discount general merchandise retailer, extending
the groups coverage to South Africa's mass lower income market.
53
The integration of the RAG' s retail debtor's book, customer database and a
number of its retail stores into United retail (Jet, Sales House, Cuthberts, and
Smiley's Warehouse) also was a positive move forward.
Realising a trading profit of R557 million from a record turnover of R9.19
billion was most satisfying for the group (Edcon annual Report, 2003:10).
Edcon's CEO Steven Ross said "that our continuously improving efficiency yields
benefits that we share with our customers; tangible benefits of best price, best style,
intrinsic quality and incomparable service. This delivery earned Edgars first, Jet second
and Sales House third place among apparel retailers in the annual Markinor Survey for
Brand awareness and Loyalty again this year" (Edcon Annual Report, 2003:17).
The last year saw Edgars and United Retail, for the first time in Edcon's history grow
turnover in excess of 15% on comparable space simultaneously. In July 2002, the
Edcon executive team attended a conference to chart the course for sustaining Edcon's
growth. The central output for this conference was to become an "Employer of
Choice", and as a group they realised that in order to sustain growth they needed to
have:
Highly trained people.
Highly motivated people.
The ability to attract the best people.
Edcon decided that to achieve their objective they would have to measure themselves
against other companies, and therefore they entered the Deloitte and Touche "Employer
of Choice Survey". The results will be announced at the end of October 2003. With this
in mind Edcon decided to review their company values in order to ensure that the
values were in line with the organisation's growth strategy and also simple enough for
all to know, understand and live by.
The new Edcon values are:
PEOPLE — We treat the individual, our customers, employees, shareholders and
the community with care and respect.
54
INTEGRITY — We are open, honest, fair and inclusive in all our relationships.
We accept and learn from constructive criticism. We make and keep
commitments.
PERFORMANCE — To improve we must measure our performance. Goals must
be clearly set and measured. Excellence is recognised, rewarded and results in
career growth.
PROFESSIONALISM — We try to achieve our full potential as leaders and
Edcon employees. We commit to winning; by learning as much as we can,
continuously improving what we do, and working as a disciplined team every
day (Edcon Annual Report, 2003).
Edcon conducted road show theatre productions, which launched the new values to the
employees and also highlighted the effects of teamwork. The values were also
discussed in the monthly company magazine the "Edcon Vibe", with the objective of
ensuring all employees knew the values and understood how to live them. All
management within Edcon have a 20% weighting for Human Resource management on
the performance agreement. This is made up of: Training and development
(employees), Employment equity, the Organisational Perception Survey, and
Performance Management (to ensure all staff know what is expected of them and that
they are measured accordingly).
Mystery Shopping Surveys were conducted through out Edgars stores. These surveys
were made up of mystery shopping — which measures the customer's shopping
experience at the store, and the customer intercept — which interviews customers in
stores. Figure 3.1 illustrates the results obtained for the past three mystery shopping
surveys conducted for the selected Edgars stores analysed.
55
181
Comparison og Customer oat lociaognon Ratings across DI19 HVOC3118a0 otorgo
Average Total for ALL Edgers Stores
1
I L I Average Total for Seven Stores
I I Westgate
Westville
I 1 Sandton
I Menlyn _ _
East Rand Mall
1
r-
I Eastgate
Cresta
0 20 40 60 80 100
Pe roo o Mystery Shopping Survey Oct 2001
o Mystery Shopping Survey Dec 2002
o Mystery Shopping Survey April 2003
I 92
90
187 94
1195
191
91
175
----Trdri
93
18 4
1 3 _II 87
83 83
91
87
Figure 3.1 Comparison of Three Mystery Shopping Surveys, with Averages for the
Selected Edgars Stores studied by the researcher and the Average for ailll Edgars
stores.
It is noticeable in Figure3.1 that the average increase in customer satisfaction for the
selected Edgars stores being studied was an increase of 4 percent on the Dec 2002
survey. It is further evident that the only two stores who decreased in customer
satisfaction was Westville (from 80 to 74%), and Cresta (from 84 to 74%) (Wilson,
2003).
56
To ensure, that all managers within Edcon understood the importance of the
organisational climate, the Edcon Organisational Development Department, sent out (in
June 2003) a "Managers Guide", booklet to ensure that managers know what makes up
and affects organisational climate / perception. Due to perceptions being dynamic and
being influenced by a number of factors within the organisation, the challenge was to
appropriate these perceptions within a broad structural framework and this would
enable benchmarking of improvements, aligning factors to current and future
initiatives, a platform for change, and the prioritising of high impact factors. It is for
this reason that Edcon developed a framework based on these principles. The Model
(Edcon Ops Conceptual Framework, see Appendix C) encapsulates the primary people
drivers within three focus clusters namely:
Organisational Focus- encompassing a broad range of behaviours relating to the
organisation's key strategic issues/drivers.
People focus- measures the effectiveness of the current people management
issues in relation to a variety of issues, in particular whether or not management
really add value, inspire the work force, are aware of and acting to resolve
issues and give sufficient support to their staff; and
Leadership focus- explores how staff experience and respond to principle
Leadership competencies essential to mobilising people in attainment of
organisational objectives (Edcon, OD: 2003).
Year Sages s '000
Saieo % Growth
Tradin Profit
Tr ading Profit Growth
1994 3626.9 69.4% 456.2 42.1%
1995 4203.6 15.9% 517.7 13.5%
1996 5097 21.3% 578.9 11.8%
1997 5616.7 10.2% 547.3 -5.5%
1998 5641.7 0.4% 417.2 -23.8%
1999 5849.8 3.7% 228.5 -45.2%
2000 6423.6 9.8% 445.5 95.0%
2001 6557.4 2.1% 351.7 -21.1%
2002 6709.8 2.3% 383.8 9.1%
2003 8313.7 23.9% 563.2 46.7%
Tabfle 3.1. Edcon Saks and Trading profit growth over 110 years (IEdcon Annual
report, 11999:4, 2003:11)
57
It is evident in Table 3.1 that Edcon's decision to realign its brands (Edgars and United
Retail) to the different market segments are starting to bare fruit. The improvement the
organisation had realised in the customer satisfaction levels according to the customer
shopping surveys had meant an increase of 71 % in trading profit from the previous
financial year.
3.5 SUMMARY.
In this chapter the researcher reviewed the background of Edgars beginnings, the way
in which the organisation grew, the strategies chosen to compete in the industry in
which it trades, the different environmental factors which had an affect on Edcon' s
turnover, the change actions implemented within the organisation, the customer
satisfaction levels of the Edgars customers, and the turnover for the last ten years for
Edcon.
5
CHAPTER 4
DISCUSSRON OF THE EDGARS ORGANISATIONAL
PERCEPTION RESULTS, C(DRRESPONDING TO EMPLOYEE
SATISFACTION.
4.1 INTRODUCTION
As part of the change process, Edcon Management decided to conduct an
Organisational Perception Survey across the entire Organisation. All permanent
employees were required to complete the survey. The main objective of the survey was
to determine whether employees understood the company values or culture, and to
establish how satisfied the employees were within the Edcon Group.
The results were grouped together according to each business unit (Store and Business
Department), to ensure that management would be able to identify the areas within the
organisation, which needed attention or focus. The objective of the survey was to
change employee perceptions and to make Edgars a compelling place to work, and an
employer of choice.
The questions (Appendix B) were divided into different groups, in order to measure the
employee's perception on the different dimensions within the organisation.
These dimensions were as follows:
o Company Identification
o Work Content
Management / Leadership Style
Training & Development
Relationships
Rewards
Performance Management
Company Value / Culture
59
Industrial Relations
Working Conditions
Employment Equity
Communication
As the Aim of the researcher is to analyse whether a link exists between employee
satisfaction within the Top Seven Edgars stores and the Profitability of the stores
concerned, the researcher extracted only identical questions from the different
annual surveys in order to ensure that the results are comparable. It is for this reason
that the researcher has selected identical questions from the 2002 and 2003 surveys.
The questions chosen relate to the factors identified in the literature review (chapter 2),
in other words those factors impacting on employee satisfaction levels within an
organisation. Table 4.1 contains the different factors that were analysed within Edgars,
together with the questions selected by the researcher regarding employee satisfaction
factors.
60
Employoo Satieaction factor-with rglatogg quostions and quosti c numbQrs
Training OppviunitiGs 111. EDCON provides sufficient training in the technical skills involved in my job. 115. I have received the training I need to do my job well. Prcnwe nal Optcortunitigs
110. EDCON's educational (study) assistance programme helps employees qualify for better jobs. 112. EDCON helps me to plan my career development. povelopment 113. EDCON provides training programmes that meet my personal development needs. 114. Staff development is one of the key objectives of EDCON. 116. I have a detailed career plan. Job Challenges
35. My job provides sufficient challenge. 151. EDCON has a stimulating and challenging environment. Iftforking Envoccomot
32. The physical (work environment) set-up at work allows me to achieve my objectives The store/department I work in is kept clean and neat. My refreshment needs (tea, coffee, water) are adequately catered for. I am comfortable working in this store/department. I have adequate physical working space.
Suwon 148. EDCON encourages its employees to be involved in their jobs. RGspGat 146. EDCON treats its employees with respect. 157. My individuality is respected at EDCON. Trust
122. Employees in my department trust one another. 125. I trust my immediate supervisor/manager.
215. The information EDCON officially communicates to its employees can always be believed Suffooight Availablo FisSOUPOQS
30. The resources I use to carry out my work are sufficient. Relationships
117. In my department, we work together as a team. 119. The people I work with are pleasant. 124. Within my department we motivate and support each other. Pay
From what I have seen, all employees at the same levels in the organisation receive equal benefits.
From what I have seen, all employees at the same levels in the organisation receive equal working conditions (i.e. offices, access to telephones) 213. There is no discrimination regarding pay at EDCON.
Tablle 4.11: Empiloyee Satistraction Dimensions and the rellated questions anallysed in
this research.
611
This chapter will follow the following outline: a brief discussion of the total survey
results, as per the original Questionnaire, for the seven selected stores. Then an
analysis of the results of employee satisfaction factor per area, analysis of the
stores turnover and profits and finally the calculation of whether a correlation /
link exists between employee satisfaction and profitability for the seven stores
analysed.
4.2 OVERVIEW OF THE TOTAL RESULTS FOR THE SEVEN EIDGARS
STORIES, IFOR THE ORGANISATIONAL SURVEY, ALL QUESTIONS.
If the total results (all questions on the survey) were reviewed, for each year during
which the survey was completed, it is noticed that there are changes year after year.
Table 4.2 below shows the average total (all questions in the survey) for each store
analysed and this is further illustrated graphically in Figure 4.1.
Year Survey
Conducted
Sandton
a
East Rand Mall
Menlyn Westgate Create East Gate Westville
Average total for
the seven
verage strength total, for aDI questions in survey stores analysed.
2000 60.5 50.6 57 52.1 52.9 56 51.9 54.4
2002 57.7 50.4 46.4 53.4 48.9 49.9 58.4 52.2
2003 59.2 60.9 55.8 53.3 74.1 55.5 71.8 61.5
Table 4.2 Total Results, For the last Three Surveys, All Questions.
Six of the seven stores showed an improvement from 2002 to 2003. The only store that
did not increase was Westgate, which decreased by 0.1%. In other words this store
remained the same as the previous survey results as the decrease is so small.
62
53. 155.5
49.9 1 5
East Gate
Three Year Average Totais, for Ali Questions in the Questionaire
151.9
60.7 171.8 8.4 Westville
_1 X8.6
48.9 152.9
152.9 53.3 53.4
152.1
53.1 155.8
146.4 157
54.0 60.9 50.4 50.6
59.1 59.2
57.7 160.5
0
20 40 60 80
Strength Peroantage
0 2000 0 2002 0 2003 0 3 Year Ave for Store
Cresta
Westgate
Menlyn
East Rand Mall
Sandton
174.1
Figure 4.1 Total Organisation Ferception Survey Resulits, for a1111 questions, ff®T the
three years surveyed.
63
The results listed in Table 4.2 and illustrated in Figure 4.1, is the average for all
questions asked. These results include the strength result (the strength result is the sum
of the answers for the "agree and strongly agree" answer) and the weaknesses result
(the weakness result is the sum of the results for strongly disagree and disagree).
It is noticeable from Table 4.2 and Figure4.1 that all the stores improved their results
against the previous year except Westgate's results which was slightly less (0.1%) than
the results obtained in 2002. It's further noticeable that all stores performed higher in
2003 than their three-year average. These results for all dimensions measured as per
paragraph 1.5.5 and Figure 4.1, illustrate that the perceptions of the employees have
increased on average from 52.2% to 61.5%, this being an increase of 9.3%.
4.3 ANALYSES OF THE RESULTS RELATING TO THE EMPLOYEE
SATISFACTION FACTORS.
The researcher will now systematically work through the factors chosen in paragraph
2.3.2.14, comparing the results obtained from store personnel for each factor that
contributes to employee satisfaction (See Appendix D for all the results for each store,
for each question).
4.3.L Training opportunities for staff.
The questions, which were selected by the researcher to test the employee satisfaction
levels within Edgars, with regards to training opportunities, are:
o "Edcon provides sufficient training in the technical skills involved in my
job?"
o "I have received the training I need to do my job well?"
Table 4.3 contains the store average percentage scored, for each area measured,
together with the average for the seven stores per area (weaknesses, neutral and
strengths), for the "Training Opportunity" dimension.
64
Training Opportunities
Strengths 149.8
iftutral 16.3
Weaknesses 141.9
Strengths 160.3
neutral 110.6
130.2 Weaknesses
0
20 40 30 ao 100
Total Avorago Po roontogo
a
Training Opportunities 2002 2003
Store. Weaknesses Neutral Strengths Weaknesses Neutral Strengths Crests 34.3 21.3 44.4 49.2 8.6 42.3 East Gate 44.1 7.5 48.5 35.2 8.2 56.7 East Rand Mall 43.3 9.1 47.6 62.8 - 8.0 29.3 Menlyn 42.5 15.1 42.5 32.2 9.5 58.4 Sandton 35.3 7.8 56.9 30.2 9.1 60.8
Westville 33.3 8.7 58.0 40.3 6.8 53.0
Westgate 41.5 4.4 54.2 43.3 8.6 48.1
Total Average for the 7 Stores
392 10.6 60.3 41.8 8.3 49.8
Table 4.3 Results for the "Training Opportunity" employee satisfaction
dimension.
Results Discussion.
Table 4.3 shows that Cresta, East Rand Mall, Westville, and Westgate indicate an
increase in the weaknesses percentage, and a decrease in their strength percentage. This
indicates that these stores feel that they either have not received sufficient training or
they have not received the required training they need to do their jobs. When studying
the Tables in Appendix D, it is evident that the question -" I have received the training
I need to do my job well?" had the highest increase for the weaknesses result. It is
further evident that Sandton, Westgate, and East Gate showed an increase in their
strength result for training.
Figure 4.2 Average totals, for Training Opportunities dimension.
65
Figure 4.2 illustrates that for the Training Opportunity factor, the total average strength
percentage had decreased by 0.5%, against the 2002 survey results. It is further evident
that the neutral percentage had decreased from 10.5% to 8.3%, and weaknesses had
increased by 2.7% which is almost the same amount by which the neutral section
decreased, this implies that employee's perception shifted downwards in the training
dimension.
Literature Control.
O'Malley (2002:159) mentions (paragraph 2.3.2.4) that employees need training to
keep current, and he further goes on to say that growth opportunities have a way of
seducing an organisational employees (who are aspiring to higher levels). Furthermore
Pfeffer (paragraph 2.3.2.13) mentions that training is an essential component of high
performance work systems, as these systems rely on the employee's skill and initiative
to identify and solve customer problems (Pfeffer, 1998:65-67). Rucci (paragraph
2.3.2.7) states that an organisation needs a trained, literate and motivated workforce if it
wants to have satisfied customers (Stratford, 1997). On the other hand King (paragraph
2.3.2.10), says that employees want to know, whether there is an opportunity to learn
and grow in their jobs? This will add to the employee's satisfaction level within an
organisation (King, 1999:12). Human (Tuttle, 2003), states that employees will leave
their employment if they feel that they are not trained and if there are no opportunities
to learn new skills (paragraph 2.3.2.12).
4.3.2. Promotional Opportunities for staff.
The questions, which were selected by the researcher to test the employee satisfaction
levels within Edgars with regards to promotional opportunities, were:
o "Edcon's educational assistance programme helps employees to qualify for
better jobs?"
o "Edcon helps me to plan my career development?"
66
Promotional Opportunities
Strengths I ...4
141.0
Ne utral 114.3
Weaknesses 31.8
em c 0 CVI
Strengths
Neutral 1 1 3-7
Weaknesses J46.3 1
0
20
40
GO
80
100
Total Average Percentage
Table 4.4 contains the store average percentage scored, for each area measured,
together with the average for the seven stores per area (weaknesses, neutral and
strengths), for the "Promotional Opportunities" dimension.
Promotional Opportunities 2002 2003
Store. Weaknesses Neutral Strengths Weaknesses Neutral Strengths
Cresta 45.0 18.4 36.7 24.8 9.0 66.3 East Gate 49.1 10.4 40.5 34.8 14.6 50.7 East Rand Mall 44.6 15.0 40.5 27.9 16.6 , 55.5
Menlyn 53.2 17.1 29.8 40.4 18.7 41.0
Sandton 40.6 12.9 46.6 31.9 14.7 53.4 Westville 37.3 14.0 48.8 24.6 10.7 64.8 Westgate 47.7 7.9 44.5 37.2 15.9 47.0 _
Total Average for they Stores
45.3 13.7 41.0 31.0 14.3 54.1
Table 4.4 Results for the "Promotional Opportunities" employee satisfaction
dimension.
Results Discussion.
Table 4.4 shows that all seven stores analysed, strength percentage results had realised
an increase of between 2.5% to 29.6 %, for the "promotional opportunity" dimension.
When studying the question results for this dimension, in appendix D, the researcher
points out that all questions showed an increase in the strength percentage. This implies
that the employees feel that Edcon's assistance programme helps employees qualify for
better jobs and helps employee's plan their careers.
Figure 4.3 Average totals for the "Promotional Opportunities" dimension.
67
Figure 4.3 illustrates that the total strength percentage for "Promotional Opportunities"
increased on average by 13.1%, the neutral percentage increased by 0.6%, and the
weaknesses percentage decreased by 13.7%. The fact that the weaknesses percentage
decreased and the neutral percentage increased, shows that employees are moving
closer to the strength percentage result. The overall results for this dimension have
increased and are very positive for Edcon, with 54,1% of staff feeling satisfied with the
promotional opportunities of their jobs.
Literature control.
Gibson (2002:106) states that the availability of promotional opportunities within an
organisation is one of the factors, which will affect employee's satisfaction (paragraph
2.3.2.1). Hertzberg (Schermerhorn, 1996:347) reckons that by rewarding good
performance with advancement, this will motivate employees and foster job satisfaction
within the organisation (paragraph 2.3.2.3). Smith (1969) argues that one of the factors
that is measured when wanting to establish the satisfaction level of employees within
the organisation is that employees want to know if there are promotional aspects, or are
they in a dead end job (paragraph 2.3.2.5). Mitchell (2001:96) on the other hand states
that one of the reasons employees stay in their job is that they are satisfied with their
chances for promotion (paragraph 2.3.2.9). It is evident from the above literature that
promotional opportunities play an important role in keeping employees motivated.
4.3.3 Developmental opportunities.
The questions, selected by the researcher to test the employee satisfaction levels within
Edgars regarding Development are:
"Edcon provides training programmes that meet my personal development
needs?"
"Staff development is one of the key objectives of Edcon?"
"I have a detailed career plan?"
Table 4.5 contains the store average percentage scored, for each area measured,
together with the average for the seven stores per area (weaknesses, neutral and
strengths), for the "Development" dimension.
68
laavollopmong
Strengths 48.7
Ft!autral 111.9
Weaknesses 141.4 1
Strengths 147.8
Neutral 113.
38.8 Weaknesses
0
20 40 80
80
100
Total Avorago Porcontago
Development 2002 2003
Store. Weaknesses Neutral Strengths Weaknesses Neutral Strengths_ Crests 30.1 22.3 47.6 50.0 4.5 45.5 East Gate 47.0 11.3 41.7 34.0 12.9 53.0 East Rand Mall 36.3 15.5 48.2 59.7 15.6 24.8 Menlyn 44.1 18.2 37.7 31.3 14.8 53.9 Sandton 30.8 12.0 57.2 26.5 13.9 59.6 Westville 39.5 9.1 51.4 39.1 9.4 51.5 Westgate 42.1 7.3 50.6 49.3 11.8 38.9
Total Average for the 7 Stores
38.0 93.3 47.8 41.4 11.0 43.7
Table 4.5 Results for the "Development" employee satisfaction dimension.
Results Discussion.
Table 4.5 shows that Cresta (-2.1%), Westgate (-11.7%), and East Rand Mall (-23.4%)
have all shown a decrease in the strength percentage for the Development dimension.
Westville, Sandton, Eastgate and Menlyn have increased their strength percentage by
between 0.1% and 16.2%. When studying the question results in appendix D, it is
noticeable that four out of the seven stores showed a decrease in the strength percentage
move for question 114- "Staff development is one of the key objectives" and question
116- "I have a detailed career plan?". This implies that the employees perceived that
their development is not a key objective of Edcon, and that they do not have a detailed
career plan.
Figure 4.4 Average totals, for the "Development" dimension.
Figure 4.4 illustrates that the development dimension strength percentage decreased by
1.1% against the previous survey, the weaknesses result in turn increased 2.8% on
69
average. This indicates that the employee's perceptions of development shifted, from
being strong to weak, indicating that employee's perception of development has
dropped. This is further strengthened by the neutral result decreasing which confirms
the decrease in the staff development result.
Literature control.
O'Malley (2002:159) states that a satisfying job, provides an opportunity for growth
and development (paragraph 2.3.2.4). It is further seen that employees within the
Biotechnology industry (paragraph 2.3.2.6) rated personal growth as one of the areas
that was the most important to them (www.h). Simon and Schuster (paragraph 2.3.2.11)
state that if employees answer in the affirmative to the question, "Is there someone at
work who encourages my development?" this will predict a high level of employee
satisfaction within the organisation (Simon, 1999). Spreier (paragraph 2.3.3.2)
mentions that the most admired companies focus on selecting, developing and
rewarding top talent (Spreier, 2003). With only 46.7% of staff feeling strong about
development within Edgars it is obvious that staff feel more can be done in this regard.
4.3.4 Job Challenges.
The questions, which were selected by the researcher to test the employee satisfaction
levels within Edgars, with regards to job challenges are:
o "My job provides sufficient challenge?"
0 "Edcon has a stimulating and challenging environment?"
Table 4.6 contains the store average percentages scored, for each area measured,
together with the average for the seven stores per area (weaknesses, neutral and
strengths), for the "Job Challenges" dimension.
70
Job Challenges 2002 2003
Store. Weaknesses Neutral Strengths Weaknesses Neutral Strengths Cresta 22.6 20.2 57.3 18.6 5.8 75.6 East Gate 26.2 22.7 51.1 27.3 13.5 59.3 East Rand Mall 24.0 13.8 62.3 18.0 13.7 68.3 Menlyn 31.7 16.9 51.5 23.8 13.6 62.9 Sandton 24.6 9.2 66.3 18.0 9.5 72.6 Westville 30.3 11.7 58.1 17.7 7.1 75.2 Westgate 34.8 7.8 57.4 25.0 17.0 58.0
Total Average for the 7 Stores
27.7 14.3 69.7 21.2 11.4 67.4
Table 4.6 Results for the "Job Challenges" employee satisfaction dimension.
Results Discussion.
Table 4.6 indicates that all the stores strength result had increased between 0.6% and
18.4%. The neutral result in turn decreased between 0.1% and 14.4% for the Cresta,
Eastgate, East Rand Mall, Menlyn, and Westville stores, and increased for Westgate
and Sandton. The weaknesses result decreased between 4% and 12.6% for all stores
except Eastgate, which increased by 1.1%.
Job Challenges
V ea
= co
Strengths 167.4
J 21.2
Neutral 111.4
Weaknesses
13
I em s- .9
N
Strengths 167.7
1 27.9
Neutral I 14.8
Weaknesses
0 20 40 60 80 900
Total Average Percentage
Figure 4.5 Average Totals for the "Job Challenges" dimension.
Figure 4.5 indicates that the total average strength percentage for the "job challenges"
dimension had increased by 9.7 %, furthermore both weakness and neutral percentages
decreased 9.7 %. This demonstrates that the employee satisfaction levels within the
stores analysed increased for this dimension.
7t
Literature control.
The extent, to which the job is perceived to be interesting, and provide opportunities for
learning and responsibility, is a factor, which has critical consequences for employee
satisfaction (Gibson, 2000:106). Hertzberg (Schermerhorn, 1996:347) states that the
organisation should show the employees the importance of the tasks they perform
within the organisation, and make them feel that their jobs are important (paragraph
2.3.2.3). Spector (Smith, 1969) states that when conducting employee satisfaction
surveys, the job from the aspect of being a routine job that satisfies the individual is
probed to test employee satisfaction (paragraph 2.3.2.5).
4.3.5. The Working Environment
The questions, which were selected by the researcher to test the employee satisfaction
levels within Edgars, with regards to working environment, are:
"The physical (work environment) set-up at work allows to me to achieve
my objectives?"
"The store/department I work in is kept clean and neat?"
"My refreshment needs (tea, coffee, water) are adequately catered for?"
"I am comfortable working in this store/department?"
"I have adequate physical working space?"
Table 4.7 contains the store average percentages scored, for each area measured,
together with the average for the seven stores per area (weaknesses, neutral and
strengths), for the "Working Environment" dimension.
72
1746
187.2
Strengths
Neutral
Weaknesses
Strengths
›- Neutral
Weaknesses
19.3
125.9
16.2
16.9
Working Environment
0 20 40 60 80 100
Total Average Percentage
Working Environment 2002 2003
Store. Weaknesses Neutral Soren! 'ha Weaknesses Neutral Strengths Crests 28.5 12.6 58.8 16.5 4.1 79.4 East Gate 28.8 6.2 64.9 28.4 6.9 64.7 East Rand Mall 25.8 8.2 66.0 17.4 7.0 75.6 Menlyn 27.2 9.8 63.0 24.6 7.6 67.8 Sandton 23.1 5.0 71.9 18.2 6.3 75.4 Westville 19.5 3.8 76.8 10.8 1.8 87.4 Westgate 28.5 2.6 68.9 19.0 9.9 71.0
Total Average for the 7 Stores 26.9 3.9 87.2 90.3 3.2 74.6
Table 4.7 Resullts for the "Working Environment" employee satisfaction
dimension.
Results Discussion.
It is evident in Table 4.7 that the strength results for six of the seven stores have shown
an increase from 2002 to 2003. The only store, which showed a decrease, is Eastgate,
by 0.2 %. A more thorough analysis of the Table will indicate that Eastgate's neutral
percentage increased by 0.6%, which illustrates that some employees in this store were
undecided on the satisfaction result.
Figure 4.6 Average Totals for the "Working Environment" dimension.
73
Figure 4.6 illustrates that overall the total average strength percentage increased by
7.3%, and the weaknesses and neutral percentages decreased. Employees within the
stores studied are more satisfied with their working environment than in 2002 when
they completed the survey.
Literature control.
Hertzberg (Schermerhorn, 1996:347) argues that the environment, in which an
employee works, has a tremendous affect on the employee's pride for where they work.
Staff in the Biotechnology survey (paragraph 2.3.2.6) rated the working environment as
an important factor (www.h). Mitchell (2001:96) includes work environment as a factor
by which employees measure job satisfaction (paragraph 2.3.2.9). King (1999:12)
states that the surroundings in which an employee works is a factor by which an
employee will evaluate their job (paragraph 2.3.2.10). Herman (Tuttle, 2003:63) states
that one of the reasons people leave a job is because it does not feel good being there.
Workers are also concerned with physical problems within the organisation.
4.3.6 Support (given to employees).
The question, which was selected by the researcher to test the employee satisfaction
levels within Edgars, with regards to support, is:
o "Edcon encourages its employees to be involved in their jobs?"
Table 4.8 contains the store average percentages scored, for each area measured,
together with the average for the seven stores per area (weaknesses, neutral and
strengths), for the "Support" dimension.
74
Support
Strengths 80.3 I
1 83.e
Neutral 18.0
Weaknesses 111.7
Strengths CM ° o Neutral cm
111.8
Weaknesses 121.3
0
20 40 60 so 100
Total Average Percentage
Support 2002 2003
Store. Weaknesses Neutral Strengths Weaknesses Neutral Strengths Cresta 19.7 17.3 63.0 7.9 2.7 89.4 East Gate 19.1 19.1 61.8 16.3 11.4 72.3 East Rand Mall 24.6 10.3 65.1 4.1 8.1 87.8 Menlyn 26.4 14.4 59.2 16.9 11.9 71.2 Sandton 17.6 7.9 74.5 8.6 8.0 83.4 Westville 20.8 6.3 72.9 8.0 5.0 87.0 Westgate 20.6 7.8 71.6 19.9 8.9 71.2
Total Average tar the 7 Stores
21.3 11.8 63.9 99.7 8.0 80.3
Table 4.8 Results for the "Support" employee satisfaction dimension.
Results Discussion.
Table 4.8 illustrates that six of the seven stores studied, strength percentage increased
between 8.9% and 26.4%. Westgate decreased by 0.4% against the last survey with the
neutral result increasing by 1.1 %. As there was only one question in this dimension, it
can be deduced that six of the stores feel that the Edcon does encourage its employees.
Furthermore the percentage that Westgate scored (71.2%), for this dimension is still a
high percentage indicating that 71,2 % of employees agree that Edcon encourages its
employees.
Figure 4.7 Average totals for the "Support" dimension.
75
Results Discussion.
Figure 4.7 highlights that the average strength result for the stores studied had
increased on average by 13.4%. The Neutral result decreased by 3.8%. This is due to
the large increase in the strength result, implies that more employees are satisfied with
Edgars and agree that they are encouraged in their jobs. We further see that 80.3% of
staff members are satisfied with this dimension whilst only 11.7% are not satisfied.
Literature control.
Gibson (2000:106) mentions that the ability of the supervisor to show interest in and
concern about their employees is a factor, which has crucial consequence to employee
satisfaction within the organisation (paragraph 2.3.2.1). Hertzberg (Sypak, 1999) on the
other hand states that sense of achievement is important to employees and that means
that the employer must conduct regular feedback sessions with the employees to
discuss their progress (paragraph 2.3.2.3). In other words by conducting these sessions
the supervisor will be supporting the employee in their development and growth.
Herman (Tuttle, 2003:63) states that employees leave their jobs because they don't get
the support they need to get their job done (paragraph 2.3.2.12).
4.3.7 Respect (for employees).
The questions, which were selected by the researcher to test the employee satisfaction
levels within Edgars, with regards to Respect, are:
o "Edcon treats its employees with respect?"
o "My individuality is respected at Edcon?"
Table 4.9 contains the store average percentages scored, for each area measured,
together with the average for the seven stores per area (weaknesses, neutral and
strengths), for the Respect dimension.
76
Respect
Strengths 1811
117.0 Neutral
Weaknesses 131.1
138.1 Strengths
2 Neutral J 1
148.7 Weaknesses
0
20 40 80
80
100
Total Average Percentage
a co 0
Respect 2002 _ 2003
Store. Weaknesse
s Neutral Strengths Weaknesce
s Neutral Strengths Crests 43.2 23.8 33.1 23.9 4.6 71.5 East Gate 48.6 16.4 35.1 33.7 21.0 45.4 East Rand Mall 48.5 15.4 36.2 27.4 19.4 53.3 Menlyn 47.8 22.1 30.2 33.4 27.3 39.4 Sandton 47.3 9.8 43.0 29.0 17.8 53.3 Westville 51.5 12.2 36.4 20.8 11.5 67.8 Westgate 40.1 6.9 53.1 50.0 17.5 32.6
Total Average for the 7 Stores
49.7 96.2 38.1 31.1 17.0 61.9
Table 4.9 Results for the "Respect" employee satisfaction dimension.
Results Discussion.
Table 4.9 illustrates that six of the seven stores are more satisfied and agree that
employees are treated with respect and that their individuality is respected, the strength
result for these six stores increased from 9.2% to 38.4%. The store, which felt less
satisfied than the last survey, is Westgate. It is evident that 10.6% more employees
were neutral about their feelings in this regard and 9.9% more employees disagreed that
employees are respected and that their individuality is respected.
Figure 4.8 Average totals for the "Respect" dimension.
Result Discussion.
When studying figure 4.8 we notice that 51.9% of the employees from the stores
analysed are satisfied with the respect dimension, a increase of 13.8% from the
77
pervious survey. It is further evident that there was an increase of 1.8% in the neutral
result. The weaknesses result, dropped by 15.6%. The overall result for this dimension
is not that positive, only slightly more than half of the employees feel that they are
treated with respect and that their individuality is respected.
Literature control.
Maslow (Gibson, 2000:130) proposes that one of the basic needs humans have, is the
need for self esteem and respect from others (paragraph 2.3.2.2). This is further
endorsed by Hertzberg (Sypak, 1999) who states that one must ensure that everyone
treats one another with respect (paragraph 2.3.2.3). King (1999:12) on the other hand
states that employees want to spend their time in a pleasing environment, where they
have rewarding and valuable experiences. In a working environment, where they are
treated with dignity and respect (paragraph 2.3.2.10). A great place to work states
Levering (1999:1) is one where people are engaged in their jobs, where there is mutual
respect between employees and management, and where people feel they are treated
fairly (paragraph 2.3.3.2).
4.3.8 Trust (in employees).
The questions, which were selected by the researcher to test the employee satisfaction
levels within Edgars, with regards to trust, are:
"Employees in my department trust one another?"
"I trust my immediate supervisor/manager?"
"The information Edcon officially communicates to its employees can
always be believed?"
Table 4.10 contains the store average percentages scored, for each area measured,
together with the average for the seven stores per area (weaknesses, neutral and
strengths), for the "Trust" dimension.
78
Trust
Strengths 60.3
152.9
Neutral 116.1
Weaknesses J 23.6
Strengths
19.4
127.7
Neutral j
Weaknesses
0 20 40 60
80
100
Total Average Percentage
it a = co 0 1 )i-
Trust 2002 2003
Store. Weaknesses Neutral Strengths Weaknesses Neutral Strengths
Cresta 21.8 26.4 51.7 17.1 5.4 77.5
East Gate 30.0 19.7 50.3 30.1 17.4 52.5
East Rand Mall 24.4 18.5 57.1 18.7 21.0 60.2
Menlyn 31.3 21.7 47.0 26.3 20.2 53.5
Sandton 24.7 18.5 56.8 22.6 17.4 60.0
Westville 27.1 15.5 57.4 22.7 8.0 69.3
Westgate 34.3 15.9 49.8 27.7 23.1 49.2
Total Average for the selected Edgers stores
27.7 99.6 52.9 23.3 13.1 00.3
Table 4.10. Results for the "Trust" employee satisfaction dimension.
Results Discussion.
It is apparent from figure 4.10 that the employees within the stores studied, trusted their
managers, colleagues and the organisation a lot more in the 2003 survey than
previously. The strength percentage increased by between, 3.2% and 25.8% over six of
the seven stores. The only store that shows a marginal decrease against the previous
year is Westgate (which decreased by 0.6%).
]Figure 4.9 Average Totals, for the Trust dimension.
79
Figure 4.9 shows that the average total for all stores, in regards to the trust dimension
had increased from 52.9% in 2002 to 60.3% in the 2003 survey. This means that 7.4%
of the employees on average feel stronger that they can trust their colleagues, their
managers and the information received from the organisation. It is further evident that
the weaknesses and the neural result percentage, decreased by 4.1% and 3.3%
respectively. These results still mean that the organisation has room for improvement,
and must work on the trust dimension as they go forward.
Literature review.
King (1999:12), states that employees will evaluate the quality of their employment
(whether they can count on or trust people in the organisation).
4.3.9 Sufficient Available Resources (to work effectively).
The question, which was selected by the researcher to test the employee satisfaction
levels within Edgars, with regards to sufficient available resources is:
o "The resources I use to carry out my work is sufficient?"
Table 4.11 contains the store average percentages scored, for each area measured,
together with the average for the seven stores per area (weaknesses, neutral and
strengths), for the "Sufficient Available Resources" dimension.
Sufficient Available Resources 2002 2003
Store. Weaknesses Neutral Strengths WeaMeows Neutral Strengths Crests 29.1 16.5 54.4 17.0 0.9 82.1 East Gate 34.1 9.4 56.5 24.8 10.7 64.5 East Rand Mall 32.8 12.8 54.4 9.7 5.6 84.7 Menlyn 33.1 13.4 53.5 32.0 8.3 59.7 Sandton 29.3 5.5 65.2 23.4 9.2 67.4 Westville 25.7 8.3 66.0 15.1 4.0 80.9 Westgate 34.8 5.2 60.0 27.3 11.2 61.5
Total Average for the 7 Stores
31.3 10.1 WS 21.3 7.2 71.6
Table till. Results for the, "Sufficient Available Resources" dimension.
80
171.8 Strengths
17.2 Neutral
121.3 Weaknesses
Strengths C■1 0 0 Neutral 110.1
1 38.8
Weaknesses 131.3
Sufficient Available Resources
0 20 40 GO 80 900
Total Average Percentage
Yea
r of S
urve
y
Table 4.11 demonstrates that the strength result across all stores studied, has increased
by between, 1.5% and 27.7%. In other words 1.5% and 27.7% of staff working in these
stores have strong feelings that their resources to carry out their jobs are sufficient. The
weaknesses result has decreased across all stores, whilst the neutral result increased for
the Eastgate, Sandton and Westgate stores. If the results for Sandton and Westgate are
scrutinised further, it will noticed that there was a shift of feeling in these stores from a
weak feeling to a neutral feeling.
Figure 4.10. Average totals, Tor the Sufficient Available Resources dimension.
Figure 4.10 highlights that on average 71.5% of employees from the stores analysed
were satisfied with their resources to carry out their jobs. This is a 12.9% increase from
the results obtained from staff in 2002. It is further evident that the neutral and the
weakness average percentages have decreased from the previous survey. From these
results it can be deduced that Edgars is successful in ensuring that the majority of staff
have the resources to do their jobs.
Literature Control.
O'Malley (2002:159) reckons that if a organisation can offer an employee unique
opportunities and resources that are not available elsewhere, these employees will be
satisfied (paragraph 2.3.2.4), in other words they will not be enticed to leave your
organisation to join another organisation within the industry in which your organisation
trades. Simon and Schuster (Simon, 1999) states that if employees can positively
81
answer the question, "Do I have the equipment I need to do my job", then it can be
predicted that there will be a high level of employee satisfaction within the organisation
(paragraph 2.3.2.11).
4.3.10 Relationships (within the organisation).
The questions, which were selected by the researcher to test the employee satisfaction
levels within Edgars, with regards to relationships are:
"In my department, we work together as a team?"
"The people I work with are pleasant?"
"Within my department we motivate and support each other?"
Table 4.12 contains the store average percentages scored, for each area measured,
together with the average for the seven stores per area (weaknesses, neutral and
strengths), for the "Relationships" dimension.
Relationships 2002 2003
Store. Weaknesses Neutral Strengths Weaknesses Neutral Strengths
Crests 15.5 13.6 70.9 11.2 1.8 87.0
East Gate 20.8 10.9 68.3 18.8 8.3 73.0
East Rand Mall 9.8 5.1 85.1 9.7 4.2 86.1
Menlyn 20.7 9.8 69.5 14.6 6.6 78.8
Sandton 13.6 2.9 83.5 14.4 4.0 81.6
Westville 21.7 5.4 72.9 15.2 2.8 81.9
Westgate 29.9 5.1 65.0 25.6 8.0 66.4
Total Average for the 7 Stores
10.9 79 73.6 16.0 6.1 79.3
Table 4.12 esults for the ellationship" employee satisfaction dimension.
Results Discussion.
As per Table 4.12 it is evident that the employees within the stores analysed are
reasonably satisfied, as six out of the stores realised an increase in the stores strength
result of between 1% and 16.1%. Sandton the only store to show a decrease in the
strength result, had only decreased by 1.9%, however as the average rating for this
82
Relationships
p9
CM
Strengths 199.3
173.3
15.1 Neutral
Weaknesses 115.5
em o o cm
Strengths
1 18-9
Neutral 17.5
Weaknesses
0
20 40 80
80
100
Total Average Percentage
a
stores strength result is 81.6%, which is the forth highest rating for this result out of the
seven stores it does not reflect negatively on the store. The results further show that
only two stores showed an increase in the neutral result: Sandton and Westgate which
shows a 2.9% increase in the neutral result against a 3.2% drop in their weaknesses
result. This indicates that the employees are shifting from weaknesses to neutral and
strong for this dimension.
IFigure 4.11 Average totals, for the "Relationships" dimension.
Figure 4.11 clearly shows that the average strength percentage for all seven stores has
increased from 73.6% to 79.3%. This means that on average 79.3% of the employees
within these seven stores feel that they work as a team, they motivate and support each
other, and the people that they work with are pleasant. It is further evident that the
neutral and weakness percentages have decreased, thus supporting the increase in the
strength result.
Literature control.
Gibson (2000:106) lists the extent to which co-workers are friendly and supportive as a
crucial consequence of employee satisfaction within an organisation. This is further
backed by Maslow (Gibson, 2000:130) who states that people have the basic need for
belongingness, the need for friendship, affiliation and interaction. Hertzberg
(Schermerhorn, 1996:347) states that part of the satisfaction of being employed is the
83
social contact it brings (paragraph 2.3.2.3). Teamwork and collaboration are
encouraged within the most admired organisations (Spreier, 2003:36).
4.3.11 Pay (or remuneration).
The questions, which were selected by the researcher to test the employee satisfaction
levels within Edgars, with regards to Pay, are:
"From what I have seen, all employees at the same levels in the organisation
receive equal benefits?"
"From what I have seen, all employees at the same levels in the organisation
receive equal working conditions (i.e. offices, access to telephones)?"
"There is no discrimination regarding pay at Edcon?"
Table 4.13 contains the store average percentages scored, for each area measured,
together with the average for the seven stores per area (weaknesses, neutral and
strengths), for the "Pay" dimension.
Pay 2002 2003
Store. Weaknesses Neutral Strengths Weahnesses Neutral Strengths
Crests 53.0 21.9 25.1 39.7 5.5 54.7 East Gate 51.1 25.6 23.3 48.3 20.8 32.9 East Rand Mall 60.5 17.3 22.2 31.2 21.1 47.7
Menlyn 57.3 17.9 24.8 51.5 21.1 27.4
Sandton 54.8 14.1 31.1 48.5 20.2 31.3
Westville 57.4 13.7 _ 28.9 41.7 11.8 46.7 Westgate 57.7 7.5 34.8 48.8 20.6 30.7
Total Average for the 9 Stores
60.0 10.9 29.2 44.0 17.2 38.9
Table 4.13 Res Its for the "Pay" employee satisfaction dimension.
Results discussion.
In Table 4.13 its is evident that six of the seven stores analysed, the average strength
percentage has increased since the last survey by between 0.2% and 29.6%. The only
store to show a decrease in the strength result is Westgate, with a subsequent increase
in their neutral result, and a decrease in the weakness result. This implies that 13.1%
more employees chose to remain neutral in this dimension against the 7.5% scored in
the last survey.
04
Pay
0 20 40 so 80 ioo Total Average Percentage
Yea
r of
Sur
vey
130.3 Strengths
Weaknesses 144.0
0 Neutral
0 0 C■1
Neutral
127.2
J110.8
Strengths
Weaknesses 1 00.0
Figure 412 Average totals for the "Pay" dimension.
Figure 4.12 shows that on average across all seven stores, only 38.8% of the employees
feel strongly that their pay is equitable among all at the same level with no
discrimination. It is further evident that there had been a small increase of 11.6% of
staff with stronger feelings against the previous survey. There is still 44% of the
employees in these seven stores who perceive that their pay is not fair (equal) across
the same levels and that they are not discriminated against.
Literature control.
Gibson (2000:106) states that the amount of pay received, and the perceived equity of
pay, can have crucial consequences to employee satisfaction (paragraph 2.3.2.1). In
other words if the employee perceives that they are not paid enough for the job done,
this will have a consequence on employee satisfaction levels within the organisation.
Hertzberg (Schermerhorn, 1996:347) argues that if pay is not well managed, it could
lead to the organisations employees being unhappy, and they will leave their jobs (as
they perceive that they are not paid fairly). Pay (Smith, 1969) is further mentioned as a
factor, which should be measured to establish employee satisfaction within an
organisation. Basically what will be tested is whether the employee perceives that their
pay is fair and is it what they deserve (paragraph 2.3.2.5). Mitchell (2001:96) states
that employees evaluate a job regarding what they earn and if satisfied they will stay
(paragraph 2.3.2.9). The most admired companies focus on rewarding top talent
(Spreier, 2003:36).
65
4.3.112 Overall average total results for all dimensions,, for selected stores.
Table 4.14 illustrates the average totals, for all dimensions and questions analysed by
the researcher, for each store and also including a grand average total for all stores all
questions.
Over All Grand Total 2002 2003 Store. Weaknesses Neutral Strengths Weaknesses Neutral Strengths
Cresta 31.2 19.5 49.4 25.1 4.8 70.1
East Gate 36.3 14.5 49.3 30.0 13.2 56.8
East Rand Mall 34.0 12.8 53.2 26.0 12.7 61.2
Menlyn 37.7 16.0 46.2 29.7 14.5 55.8
Sandton 31.1 9.6 59.3 24.7 11.8 63.5
Westville 33.1 9.9 57.0 23.3 7.1 69.6
Westgate 37.4 7.1 55.4 33.9 13.9 52.2
sivera00 Total Average, gor the 7 Stores ABO Factors
34.4 12.3 62.e3 27.6 11.3 61.3
Table 4.114 Overall grand total, selected stores, and all dimensions studied.
Figure 4.14 illustrates that the Average Store strength percentage has increased by
between 4.2% and 20.8%, from the last survey held in 2002. The only store to realise a
decrease overall for their employee satisfaction dimensions was Westgate which
decreased by 3.2% against their last result. However if their neutral results are
analysed, it will be noticed that this result increased by 6.8 %, this implies that the
employees who changed their results on average from the previous surveys results,
rather changed to a result of neutral. It is also evident that Westgate's weaknesses result
decreased by 3.5%.
We can summarise by stating:
o 70.1% of the employees working in the Crests store are satisfied overall.
0 56.8.1% of the emplo yees working in the Eastgate store are satisfied overall.
86
61.2% of the employees working in the East Rand Mall store are satisfied
overall
55.8% of the employees working in the Menlyn store are satisfied overall.
63.5% of the employees working in the Sandton store are satisfied overall.
69.6% of the employees working in the Westville store are satisfied overall
52.2% of the employees working in the Westgate store are satisfied overall.
@
0 To
1
Overall! Grand Total for Selected Stores Analysed.
1)
Strengths 101.3
Neutral 11.2
Weaknesses 27.5
aN
Strengths I 52.E
Neutral 12.6
Weaknesses 34.4
0 20 40 80 80 100
Total Average PG =Maga
Figure 4.113 Overall Grand Totals for Selected Stores- All Dimensions Analysed.
It is evident from figure 4.13 that the overall total average, for the strength result has
increased (for all questions studied by the researcher), by 8.5%, from 52.8 to 61.3%.
This means that on average all employees working in the stores studied by the
researcher feel 61.3% strong about the employee satisfaction factors within the
organisation. It is further noticeable from figure 4.13 that the neutral result decreased
from 12.8 to 11.2%, a decrease of 1.6%, and the weaknesses result also decreased from
87
34.4 to 27.5%, a decrease of 6.9%. In other words it can be said that on average 6.9%
of all the staff are happier within these stores.
4.4 ANALYSIS OF THE RESULTS RELATING TO 1H1 SELECTED
STORES PROFITA 11111.1[1Y AN TURNOVER.
The researcher will now analyse the profit and turnover results for the stores studied,
for the two years relating to the Organisation Perception Survey results. Figure 4.14.
illustrates the turnover for the seven stores studied. It is evident that the store with the
greatest turnover is Eastgate, at R233 949 205, and the store with the smallest turnover
is Cresta at R135 950 722. It is further evident that the store, which showed the largest
increase in turnover, is Menlyn, with an increase in turnover of R43,8 million.
Tarnow) r By Moro, kw Two pars
CO
260.0
Eastgate
Sandton
Westville
Westgate
Menlyn
Cresta
East Rand Mall
1241
12-912-1233.
1166.7 116.8
1182.5
11314-1166.8
162.6
24.3
120.2
11"9-7207.7
0
01.4143_1170.1
143
=MO 124 —11
9 36,
133.8
1 0.0 50.0 100.0 150.0 200.0
Tumovor ifl Rands (Millions)
02003 ❑ 2002 ❑ Increase in Turnover
Figure 4.114 Turnover (Sales) by Store for Two Years.
ag
Percentage Incireasa In Employee SatIsilaction Perceptions versus Increase In Store Turnover
1 00%
80%
80%
42% 40%
20% —mot
0% @oGaas
-20%
27% 21%
12% 16cY.
C@( 0g L Q Paxcl Wooto gEoclOcR
Storo
Ug RNO G3 0 @iji9 ngths
280/
This% 10%7%
N92Atgate
16%
4.4.1. Analysis of the Increase in Turnover versus the increase in Employee
Satisfaction Perception.
atom Turnover
Pereenctege Increase
Employee Sotlogoction Strength Porcontego
!norm=
Cresta 12% 42%
Emstgarite 12% 16%
Etasst Rand ROM! 23% 16%
lifienlyn 27% 21%
Saanditon 10% 7%
!Nasty!Ille le% 22%
litfostwage 13% -6%
Avovago 17% 17%
Table 4.15 The Increase inn Store Turnover versans The Increase inn the Employee
Satisfaction — Strength Percentage.
Figure 4.15 Percentage iuncrease inn Employees Satisfaction Perception versus
Percentage Increase in Store Turnover.
89
It is evident in Table 4.15 and Figure 4.15 that all stores realised an increase in the
stores turnover and a corresponding increase in the employee satisfaction strength
percentage, except Westgate who had a decrease of —6% in their store employee
perception results. Further it is noticeable in Table 4.15 that the overall average
increase in store turnover is 17% with a corresponding average increase of 17% for the
strength result. In other words it can be said that based on these results if the employee
perception increases by 1% the turnover will also increase by 1% on average for the
stores analysed. On average this shows a positive correlation at face value for the stores
studied. The customer factor has not however been taken into account.
4.4.2. Analysis of the data, to establish whether a correlation exists between the
employee satisfaction perception and store turnover.
The researcher has used Pearson' correlation coefficient, which computes the
"correlation between two ratio scaled random variables, and correlation analysis
measures the strength of a linear association between x (independent variable) and y
(dependent variable). A strong relationship implies a more reliable estimate of y. The
closer the value of r (correlation coefficient) is to zero the weaker the relationship and
the value of x can not be confidently used to determine the value of y for forecasting
purposes" (Wegner, 2000: 311-315). In other words if the Pearson's correlation
coefficient turns out to be 0.91, this means that there is a very strong correlation
between the variables and as such these variables can be used to forecast future values.
The goal of the calculation is to calculate whether a correlation (link) exists between
turnover and employee satisfaction.
Pearson's correlation coefficient (r) is defined by:
nxy a r =
N [nD' - (D) 2] x [nly2 - (FY)2
90
r = the correlation coefficient
x = the values of the independent variable (employee satisfaction)
y = the values of the dependent variable (turnover)
n = the number of paired data points
where
X Envoi .,ye
Safisf ction Y Turn ver X2
42.06 12.38 1769.04 520.70 153.26 15.32 11.79 234.70 180.62 139.00 15.15 24.80 229.52 375.72 615.04 20.70 26.71 428.49 552.90 713.42 7.03 10.16 49.42 71.42 103.23
22.01 18.38 484.44 404.54 337.82 -5.77 15.26 33.29 -88.05 232.87
118.50 119.48 I 322.91 2017.88 12294.88
Table 4.16 Table off' results used to calculate the correlation coeffricient.
nlAy-Ex EY 1" =
AI [nEr2 - (EX) 2] x NEY2 - (EY) 2
= 7(2017.86) - 116.50 x 119.48
AI [7(3228.91) - (116.50) 2] x [7(2294.65) - (119.48) 2
= 14125.02 - 13919.42
AI (22602.37 - 13572.25) x (16062.55 - 14275.47)
= 205.6
AI 6030.12 x 1787.08
205.60 4017.156
= 11,0511 1
911
Interpretation.
The correlation coefficient is close to zero, hence the association between x and y is a
weak positive relationship. Values of x can therefore not be estimated with confidence,
due to the low correlation coefficient.
4.5 SUMMARY
In this chapter the researcher analysed the results extracted from the organisational
perception surveys, for the factors, that affect employee satisfaction levels within an
organisation. Furthermore the overall average results were analysed along with the
average increases in store turnover and employee satisfaction perceptions. The
researcher calculated whether a direct correlation existed between the store employee
satisfaction perceptions and the store turnover, and a very weak relationship between
employee satisfaction and store turnover is evident for the stores analysed.
92
CHAFFER 50
IFIINDIINGS, RECOMMENDATIONS AND CONCLUSIONS.
5.1 IN11801CDUCTION.
The problem statement, "Does employee satisfaction have a direct impact on an
organisations profits?" was investigated and analysed by the researcher in the previous
chapters. In this chapter the researcher will summarise the research findings and make
the recommendations based on the literature review and findings through the
investigation of the problem statement.
5.2 RESEARCH IHNEDINGS.
The research findings on factors affecting employees in the selected Edgars stores are:
It is evident in Table 3.1 that the organisational change process implemented by
Steven Ross is baring fruit for the Edcon Group.
It was found in paragraph 4.3.1 that employees are only 49.8% satisfied with
the training they have received.
The employees further felt that Edcon's assistance programmes do not aid the
employees to qualify for better jobs and that their career plans are not
developed. This is based on the average result of 54.1% for the employees.
Edgars "training programmes" to meet employees personal development needs
and ensuring that employees have a detailed career plan is not effective at
present. This is noticeable from the average strength percentage of 46.7 scored
by the employees for this dimension.
Employees within the Edgars stores analysed, felt that they work in a
challenging environment and that their jobs are challenging. The average
percentage scored was 67.4%.
74.5% of employees reckon that they are satisfied with the working
environment, in which they work.
Employees feel that Edcon encourages them to be involved in their jobs, as seen
by the 80.3% average strength result.
93
Helpfulnoee
Attitude about tho
job
Cuotomor impr000ion
Attitude about tho company
r Customer I recommondetIona
Employee behaviour
The "Respect" employee satisfaction factor is low with an average strength of
51.9%. This implies that one out of every two employees in the Edgars stores
analysed feel that Edcon does not treat them with respect and their individuality
is not respected.
Employees feel that they can "trust the people they work with" as indicated by
the 60.3% average scored.
Edcon "supplies sufficient resources to employees to carry out their jobs", this
is noticeable in the 71.5% average scored by the employees for this dimension.
Edgars "relationships between employees are sound" as the employees have
indicated an average strength of 79.3%.
The employees in the Edgars stores analysed feel that they "do not receive
equitable pay within the organisation". Only 38.8% scored a strong result on
this dimension.
Overall, across all employee satisfaction factors measured, the employees
scored a 61.3% average strength result. This implies that 61.3% of the
employees within the selected stores studied are satisfied employees overall.
Almost 2 in every 3 workers are satisfied.
Using the results obtained in this dissertation the researcher has designed a diagram,
based on the Sears Employee —Customer- Profit Chain model (paragraph 2.4.2.7),
illustrated below in Figure 5.1
THE ECIOARS ERAPLOYEE CUESTOF1A2F1 - PROPOT CHAIN OCIAORARti.
0) ©OWC g,41P.Og Q ©035971411LOWA ITtg §GOOP C)CC(3617111,00:: CIIMT.r"
CbItt3!Vtc3§
]Figure 5.1 The Edgars Emplloyee- Customer- Profit Chain Diagram.
94
It is evident from Figure 5.1, that if employee satisfaction increases by 17%, along with
customer satisfaction increasing by 4%, the turnover for the selected stores analysed
will increase by 17% on average.
5.3 RECOMMENDATIONS.
The following recommendations can be made based on the results of this research.
Edgars Management must concentrate on ensuring that employees receive
training in accordance with their jobs. A training and development schedule
based on development opportunities, is to be drawn up and as indicated in
Chapter 3. The store manager must be held accountable to ensure that the
employees are trained. Mucci (Stratford, 1997) states that organisations need a
trained literate workforce if they want to satisfy customer needs.
Edgars management must embark on a general information sharing campaign,
through which employees can be enlightened as to the average benchmark
remuneration received by employees at the different levels. This will assist to
clear up any misconceptions on the employee's side, as far as pay is concerned.
Management is also to ensure that rewards are performance and time based.
5.4 CONCLUSIONS.
The literature review confirms that there are factors, which affect the satisfaction levels
of employees within an organisation. Furthermore the employee affects the customer,
who ultimately has an impact on the organisation's profits. Through the research the
researcher has shown that there is a connection between an organisation's profit's and
employee satisfaction. It is further evident in the stores analysed that the turnover
increased on average when employee satisfaction levels increased.
95
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11.02
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AIDTIENEDIX B
ORGANISATIONAL PERCEPTION SURVEY
Dear Participant
The Edcon Group is committed to a process of constantly assessing employee perceptions in order to gain a better . understanding of employees' views about the organisation. As such, we request your assistance in the completion of the organisation's perception survey.
The purpose of this survey is to measure how the action plans that have been put into place have changed the results of the survey as well as to identify further developmental areas. This can only be achieved through your full participation.
It is now time for the third survey. As in the past, the survey is divided into two sections:
Section 1: Questions about the way we do things at EDCON
Section 2: Biographical (personal) information, which is intended for research purposes only.
All questionnaires supplied are treated in the strictest confidence. Your completed questionnaire should be placed in sealed envelopes in your work area. The collectively analysed results will make it impossible to identify individuals' answers, and in this way makes the survey totally anonymous. You are therefore encouraged to use this opportunity to answer honestly and openly.
"Why do I need to complete this questionnaire?"
Your participation is vital in gaining an accurate reflection of the perceptions of all staff members. This study will only be meaningful if you participate.
"How long would it take to complete the questionnaire?"
We know it is a long questionnaire, but it will take only ±30 minutes to complete.
"Will I get feedback?"
Feedback will be given to you on the outcome by means of the EDCON Vibe and your management.
INSTRUCTIONS — Must be read out to employees
Thank you for your willingness to complete the questionnaire
To ensure confidentiality, you have been provided with a self-seal envelope. Once you have completed the questionnaire, place it in the envelope and hand it to your line manager.
The questionnaire consists of 228 statements. It takes approximately 30 minutes on average to complete it.
Please read each statement and indicate your level of agreement or disagreement by placing a tick in the appropriate block next to each statement. Try to avoid answering 'unsure' on too many occasions, as this tends to skew the results.
The scale refers to the following: 1 = Strongly disagree 2 = Disagree 3 = Unsure 4 = Agree 5 = Strongly agree
If a question does not apply to you, please leave it out.
EXAMPLE:
QUESTION 1: My manager is always friendly.
If you strongly agree with this statement, tick the block below 'Strongly agree.'
Strongly Disagree
Disagree Unsure Agree Strongly Agree
0 1
0 2
0 3
0 4
0 5
TIPS When a question refers to the organisation, think of your immediate department within the chain/ business unit you are working, ie Edgars, United Retail, Manufacturing, etc. Please answer all the questions and choose only one answer per question. If a question does not apply to you, please leave it out.
THANK YOU FOR YOUR CO-OPERATION!
Strongly Disagree Unsure Agree Strongly Disagree Agree
The goals that we agreed to from last year's surveys results have been achieved, i.e. you can see things improving
0 0 0 0 0 1 2 3 4 5
The communication on the survey this year was effective. 0 0 0 0 0 1 2 3 4 5
Please give us your suggestions on how we can improve the communication.
Strongly Disagree Unsure Agree Strongly Disagree
Agree
COMPANY IDENTIFICATION Indicate how strongly you agree/disagree that the following factors were important in your decision to COME to EDCON:
advancement opportunity to reach my full potential 0 0 0 0 0 1 2 3 4 5
challenge of the job 0 0 0 0 0 1 2 3 4 5
ability to balance work with my personal/family life 0 0 0 0 0 1 2 3 4 5
salary/wage 0 0 0 0 0 1 2 3 4 5
manager/supervisor 0 0 0 0 0 1 2 3 4 5
open communication 0 0 0 0 1 2 3 4
control of work schedule 0 O 0 0 1 2 3 4
benefits 0 0 0 0 0 1 2 3 4 5
overall management quality 0 0 0 0 0 1 2 3 4 5.
job security 0 0 0 0 0 1 2 3 4 5
equal opportunity 0 0 0 0 0 1 2 3 4 5
good reputation of EDCON with people outside the company. 0 0 0 0 0 1 2 3 4 5
3
Strongly Disagree Unsure Agree Strongly Disagree
Agree
COMPANY IDENTIFICATION (continued) Indicate how strongly you agree/disagree that the following factors are important in your decision to STAY with EDCON
advancement opportunity 0 0 0 0 0 1 2 3 4 5
challenge of the job 0 0 0 0 0 1 2 3 4 5
ability to balance work with my personal/family life 0 0 0 0 0 1 2 3 4 5
salary/wage 0 0 0 0 0 1 2 3 4 5
manager/supervisor 0 0 0. 0 0 1 2 3 4 5
open communication 0 0 0 0 0 1 2 3 4 5
control of work schedule 0 0 0 0 0 1 2 3 4 5
benefits 0 0 0 0 0 1 2 3 4 5
overall management quality 0 0 0 0 0 1 2 3 4 5
job security 0 0 0 0 0 1 2 3 4 5
equal opportunity 0 0 0 0 0 1 2 3 4 5
good reputation of EDCON with people outside the company. 0 0 0 0 0 1 2 3 4 5
Strongly Disagree Unsure Agree Strong!: Disagree
Agree
WORK CONTENT I understand the goals and objectives of EDCON as a whole. 0 0 0 0 0
1 2 3 4 5 I understand the goals and objectives of my Division/ 0 0 0 0 0 Department. 1 2 3 4 5
I clearly understand my job goals. 0 0 0 0 0 1 2 3 4 5
I personally agree with the organisation's mission and goals. 0 0 0 0 0 1 2 3 4 5
I go the extra mile to meet business needs. 0 0 0 0 0 1 2 3 4 5
The resources I use to carry out my work are sufficient. 0 0 0 0 0 1 2 3 4 5
My work methods are relevant and effective. 0 0 0 0 0 1 2 3 4 5
The physical (work environment) set-up at work allows me to achieve 0 0 0 0 0 my objectives. 1 2 3 4 5
I know how the job I do fits into the total picture of EDCON. 0 0 0 0 0 1 2 3 4 5
My department knows exactly what tasks have to be carried out. 0 0 0 0 0 1 2 3 4 5
My job provides sufficient challenge. 0 0 0 0 0 1 2 3 4 5
I know what I must do to do my job well. 0 0 0 0 0 1 2 3 4 5
4
Strongly Disagree Unsure Agree Strongly Disagree
Agree MANAGEMENT/LEADERSHIP STYLE
My Manager/Supervisor: 0 1
0 2
0 3
0 4
0 5
Has good knowledge of developments inside and outside the business that could affect the work we do.
0 1
0 2
0 3
0 4
0 5
Fully understands problems and situations before taking action. 0 1
0 2
0 3
0 4
0
Looks at issues flexibly from many different points of view. 0 0 0 0 0 1 2 3 4 5
Takes personal responsibility for developing and maintaining customer 0 0 0 O 0 relationships. 1 2 3 4 5 Encourages everyone in the team to continually strive to raise 0 0 0 0 0 performance to outstanding levels of excellence. 1 2 3 4 5
Encourages others to take the initiative and go beyond their job 0 0 0 0 0 profiles to improve performance. 1 2 3 4 5
Seeks to understand the true point of view of others. 0 0 0 0 0 1 2 3 4 5
Establishes partnerships with key people to bring about needed 0 0 0 0 0 change in the business. 1 2 3 4 5
45.Gets team members to identify and work towards shared goals. 0 0 0 0 0 1 2 3 4 5
Uses performance problems as an opportunity for staff to learn and 0 0 0 0 0 develop. 1 2 3 4 5
Maintains high standards of personal and business ethics. 0 0 0 0 0 1 2 3 4 5
Lets people know where they stand on issues concerning the O 0 0 0 0 business. 1 2 3 4 5
Uses many methods to let people know about events inside and 0 0 0 0 0 outside the business. 1 2 3 4 5
Is knowledgeable about own business area. 0 0 0 0 0 1 2 3 4 5
Thinks through the consequences of different courses of action. 0 0 0 0 0 1 2 3 4 5
Shows commitment to follow through with all of our customers. 0 0 0 0 0 1 2 3 4 5
Creates a culture in which everybody focuses on the continuous 0 0 0 0 0 improvement of the quality of their work. 1 2 3 4 5
Encourages us to take action in order to solve problems. 0 0 0 0 0 1 2 3 4 5
Respects the ideas of others in order to make the best business 0 0 0 0 0 decision. 1 2 3 4 5
Obtains support from key decision makers for his / her plans. 0 0 0 0 0 1 2 3 4 5
Gives staff encouragement, training or resources for their personal 0 0 0 0 0 development. 1 2 3 4 5
Provides staff with constructive feedback which results in needed 0 0 0 0 0 change. 1 2 3 4 5
Makes decisions based on all the relevant information 0 0 0 0 0 1 2 3 4 5
Encourages the creation of new ideas and approaches to the way we 0 0 0 0 0 work. 1 2 3 4 5
Takes the initiative to identify and remove barriers to excellent 0 0 0 0 0 customer service. 1 2 3 4 5
Shows interest to improve performance of our department beyond 0 0 0 0 0 existing levels 1 2 3 4 5
Builds a climate in which people are valued for openly speaking their 0 0 0 0 0 mind and saying what they truly think and feel. 1 2 3 4 5
Good at obtaining agreement from key people on relevant business O 0 0 0 0 issues. 1 2 3 4 5
5
Strongly Disagree Unsure Agree Strongly Agree Disagree
MANAGEMENT/LEADERSHIP STYLE ( continued My Manager/Supervisor: O
1 0 2
0 3
0 4
0 5
Builds co-operation and team spirit between people across teams / 0 0 0 0 0
across functions. 1 2 3 4 5
Supports others' development by acting as a coach to them. 0 0 0 0 0 1 2 3 4 5
Encourages individual team members to respect own and others' 0 0 0 0 0 roles and to uphdld the values that exist in each role. 1 2 3 4 5
Justifies business decisions with confidence. 0 0 0 0 0 1 2 3 4 5
Creates a systematic way of gathering information that the department 0 0 0 0 0
needs. 1 2 3 4 5
i 70. Is good at identifying the underlying causes of issues and problems. 0 0 0 0 0 1 2 3 4 5
Has different plans to take advantage of opportunities and deal with 0 0 0 0 0
threats. 1 2 3 4 5
Focuses on delivering quality solutions that exceeds customer 0 0 0 0 0
expectations. 1 2 3 4 5
Systematically reviews the progress of everyone in the area towards 0 0 0 0 0
performance improvement targets. 1 2 3 4 5
Creates an environment where there is more action than talk. 0 0 0 0 0 1 2 3 4 5
Enables others to really speak their mind without fear of punishment or 0 0 0 0 0
criticism. 1 2 3 4 5
Lets people pursue shared goals instead of their own individual interests. 1 2 3 4 5
77. Manages commitments well, at all times, when dealing with different 0 0 0 0 0
parties — "Our word is our bond" 1 2 3 4 5
Builds high expectations about the future success of the department. 0 0 0 0 0 1 2 3 4 5
Maintains an excellent information base on competitors' customer 0 0 0 0 0 markets and the business environment. 1 2 3 4 5
Acts on problems after they have been fully analysed 0 0 0 0 0 1 2 3 4 5
Compares the pros and cons of many options before implementation. 0 0 0 0 0 1 2 3 4 5
Sets high personal standards and an example to follow. 0 0 0 0 0 1 2 3 4 5
Sets realistic but challenging performance improvement targets for 0 0 0 0 0
everyone. 1 2 3 4 5
Encourages people to tackle issues proactively. 0 0 0 0 0 1 2 3 4 5
Creates a climate in which staff are keen to take on extra responsibility 0 0 0 0 0 as they will learn and develop. 1 2 3 4 5
Encourages team members to participate fully and to interact openly 0 0 0 0 0
and equally. 1 2 3 4 5
Demonstrates commitment to always work towards the achievement of 0 0 0 0 0 Edcon's goals. 1 2 3 4 5
Takes into account information that conflicts with the way he / she 0 0 0 0 0 thinks. 1 2 3 4 5
Checks / validates information through effective questioning and 0 0 0 0 0 evaluation. 1 2 3 4 5
'0. Displays flexibility and preparedness to change his / her mind after 0 0 0 0 0
listening to other options. 1 2 3 4 5
91. Continually looks at new developments and applies relevant best 0 0 0 0 0 practices in the area. 1 2 3 4 5
6
Strongly Disagree Unsure Agree Strongly
MANAGEMENT/LEADERSHIP STYLE (continued) Disagree Agree
My Manager/Supervisor: . Shows clear ambition / concern for improving the departments' 0 0 0 0 0 performance beyond existing levels. 1 2 3 4 5
Creates an environment where action can be taken quickly. 0 0 0 0 0 1 2 3 4 5
Is in touch with the ideas and attitudes of others. 0 0 0 0 0 1 2 3 4 5
Consciously seeks to manage squabbling and conflict within the 0 0 0 0 0 team. 1 2 3 4 5
Provides staff with information and support when they do tasks in 0 0 0 0 0 which they are not fully trained. 1 2 3 4 5
Ensures that differences are discussed immediately, openly and by 0 0 0 0 0 involving the parties concerned. 1 2 3 4 5
Identifies opportunities or is not caught unaware because of a lack of 0 0 0 0 0 information. 1 2 3 4 5
Sees that work meets quality standards. 0 0 0 0 0 1 2 3 4 5
Regularly reviews own performance and others' to make sure that 0 0 0 0 0 improvements in performance are achieved. 1 2 3 4 5
Listens and does not interrupt others so their point of view is 0 0 0 0 0 understood. 1 2 3 4 5
Effectively uses others' expertise and experience to achieve goals. 0 0 0 0 0 1 2 3 4 5
Encourages openness, honesty and respect among team members 0 0 0 0 0 rather than back-biting and "corridor discussions". 1 2 3 4 5
Inspires enthusiasm and energy ( a willingness to get involved). 0 0 0 0 0 1 2 3 4 5
Encourages us to listen to and fully understand the ideas and feelings 0 0 0 0 0 of others. 1 2 3 4 5
Uses differences amongst team members (development areas, 0 0 0 0 0 strengths and preferences) to achieve objectives. 1 2 3 4 5
Matches individual talents to fit specific work requirements. 0 0 0 0 0 1 2 3 4 5
Allows subordinates initiative and control over their own work. 0 0 0 0 0 1 2 3 4 5
Strongly Disagree Unsure Agree Strongly Disagree
Agree
TRAINING & DEVELOPMENT I have the opportunity to apply what I have learned from EDCON 0 0 0 0 0 training programmes. 1 2 3 4 5
EDCON's educational (study) assistance programme helps 0 0 0 0 0 employees to qualify for better jobs. 1 2 3 4 5
EDCON provides sufficient training in the technical skills involved in 0 0 0 0 0 my job. 1 2 3 4 5
EDCON helps me to plan my career development. 0 0 0 0 0 1 2 3 4 5
EDCON provides training programmes that meet my personal 0 0 0 0 0 development needs. 1 2 3 4 5
Staff development is one of the key objectives of EDCON. 0 0 0 0 0 1 2 3 4 5
I have received the training I need to do my job well. 0 0 0 0 0 1 2 3 4 5
I have a detailed career plan: O 0 0 0 0 1 2 3 4 5
7
Strongly Disagree • Unsure Agree Strongly Disagree
Agree
In my department, we work together as a team. 0 1
0 2
0 3
0 4
0 5
There is good co-operation between people in my department and the people in other departments at EDCON.
0 1
0 2
0 3
0 4
0 5
The people I work with are pleasant. 0 1
0 2
0 3
0 4
0 5
I feel free to approach my Human Resources Manager with any 0 0 0 0 0
problem I have. 1 2 3 4 5
My Human Resources Manager provides fair and useful assistance. 0 0 O 0 0 1 2 3 4 5
Employees in my department trust one another. 0 O 0 0 0 1 2 3 4 5
We work independently, but cooperate when necessary between 0 0 0 0 0
Divisions. 1 2 3 4 5
Within my department we motivate and support each other. 0 0 0 0 0 1 2 3 4 5
I trust my immediate supervisor/manager. 0 0 0 0 0 1 2 3 4 5
My immediate supervisor/manager trusts me. 0 0 0 0 0 1 2 3 4 5
I trust higher levels of management. 0 0 0 0 0 1 2 3 4 . 5 _ .
Strongly D isagree nsure gree rong y
Disagree
Agree
REWARDS EDCON incentive schemes adequately reward extra effort. 0 0 0 0 0
1 2 3 4 5 Compared with other retail companies, EDCON rewards its 0 0 0 0 0
employees well. 1 2 3 4 5
At EDCON, a promotion means a fair increase. 0 0 0 0 0 1 2 3 4 5
The salary I am paid for my job is fair compared to what I know of O 0 0 0 0
other jobs at EDCON. 1 2 3 4 5
My salary matches the responsibility I have. 0 0 0 0 0 1 2 3 4 5
My salary and benefits package is structured efficiently. 0 0 0 0 0 1 2 3 4 5
I get enough recognition for what I do. 0 0 0 0 0 1 2 3 4 5
Strongly Disagree Unsure Agree
Strongly Disagree
Agree
PERFORMANCE MANAGEMENT My manager demonstrates strong personal commitment to the 0 0 0 0 0 Performance Management Process. 1 2 3 4 5
I have a Performance Agreement. 0 0 0 0 0 1 2 3 4 5
My manager sets clear, fair and relevant performance expectations. 0 0 0 0 0 1 2 3 4 5
My manager effectively designs opportunities for me to attain my 0 0 0 0 0 career objectives. 1 2 3 4 5
My manager and I sit down regularly to review my overall 0 0 0 0 0
performance. 1 2 3 4 5
My manager is an effective coach, enabling me to improve my 0 0 0 0 0 performance. 1 2 3 4 5 I have been trained in the Performance Management Process. 0 0 0 0 0
1 2 3 4 5 I think my performance on the job is evaluated fairly. 0 0 0 0 0
1 2 3 4 5
8
Strongly Disagree Unsure Agree Strongly Disagree
Agree COMPANY VALUES/CULTURE
EDCON values people. 0 1
0 2
0 3
0 4
EDCON is concerned about providing good service to its customers. 0 0 0 0 0 1 2 3 4 5
145 EDCON is concerned about the quality of the merchandise it sells. 0 0 0 0 0 1 2 3 4
EDCON treats its employees with respect. 0 0 0 0 0 1 2 3 4 5
EDCON values integrity. 0 O 0 0 0 1 2 3 4 5
EDCON encourages its employees to be involved in their jobs. 0 0 0 0 0 1 2 3 4 5
149..1 know the values of the company. 0 0 0 0 0 1 2 3 4 5
In my opinion, EDCON is adapting well to the changing South African 0 0 0 0 0 environment. 1 2 3 4 5 EDCON has a stimulating and challenging environment. 0 0 0 0 0
1 2 3 4 5 Staff are supportive of each other. 0 0 0 0 0
1 2 3 4 5 Staff communicate openly with business partners. 0 0 0 0 0
1 2 3 4 5 154: EDCON recognises performance. 0 0 0 0 0
1 2 3 4 5 Staff members make an effort to improve their performance. 0 0 0 0 0
1 2 3 4 5 Staff members strive to be the best all the time. O 0 0 0 0
1 2 3 4 5 My individuality is respected at EDCON. 0 0 0 0 0
1 2 3 4 5 Staff members are honest in their dealings. 0 0 0 O 0
1 2 3 4 5
EDCON values professionalism. 0 0 0 0 0 1 2 3 4 5
Staff members accept responsibility to perform. O 0 0 0 0 1 2 3 4 5
My contributions are valued. 0 0 0 0 0 1 2 3 4 5
Staff members accept personal responsibility for their actions. 0 0 0 0 0 1 2 3 4 5
Staff strive towards continuous improvement. 0 0 0 0 0 1 2 3 4 5
Staff focus on developing and maintaining world- class customer 0 0 0 0 0 service. 1 2 3 4 5
TIPS When a question refers to the organisation, think of your immediate department within the chain/ business unit you are working, ie Edgars, United Retail, Manufacturing, etc. Please answer all the questions and choose only one answer per question. If a question does not apply to you, please leave it out.
9
Strongly Disagree Unsure Agree Strongl Disagree
Agree
INDUSTRIAL RELATIONS I understand the disciplinary procedures at EDCON. 0 0 0 0 0
1 2 3 4 5 I believe EDCON handles the problem of stay-aways fairly. 0 0 0 0 0
1 2 3 4 5 Discipline at EDCON is fair. 0 0 • 0 0 0
1 2 3 4 5 EDCON pays attention to employee complaints. 0 0 0 0 0
1 2 3 4 5 At EDCON, employees are seldom dismissed without good reason. 0 0 0 0 0
1 2 3 4 5 If an employee has a grievance he/she is given a fair hearing. 0 0 0 0 0
1 2 3 4 5 I understand how the grievance procedure works. 0 0 0 0 0
1 2 3 4 5 Employees are not victimised by management if they voice 0 0 0 0 0
complaints. 1 2 3 4 5
I believe that EDCON applies its disciplinary rules consistently to all 0 0 0 0 0
employees regardless of position, gender or race. 1 2 3 4 5
Employees have reasonable access to the disciplinary and grievance 0 0 0 0 0 procedures and can view these to exercise their rights. 1 2 3 4 5
I am aware of what is regarded as acceptable and 0 0 0 0 0
unacceptable conduct by their employer. 1 2 3 4 5
The National Forum has had a positive influence on the working 0 0 0 0 0
environment. 1 2 3 4 5
Grievances and complaints are dealt with timeously. 0 0 0 0 0 1 2 3 4 5
Employees have enough opportunity to let management know how 0 0 0 0 0
they feel about issues that affect them. 1 2 3 4 5
Strongly Disagree Unsure Agree Strong!) Disagree
Agree
WORKING CONDITIONS The store/department I work in is kept clean and neat. 0 0 0 0 0
1 2 3 4 5 My refreshment needs (tea, coffee, water) are adequately catered 0 0 0 0 0 for. 1 2 3 4 5
I am comfortable working in this store/department. 0 0 0 0 0 1 2 3 4 5
I have adequate physical working space. 0 0 0 0 0 1 2 3 4 5
Rest and recreation areas are adequate. 0 0 0 0 0 1 2 3 4 5
The canteen facilities are equitable for all. 0 0 0 0 0 1 2 3 4 5
The canteen is always in a clean and hygienic state. 0 0 0 0 0 1 2 3 4 5
The change rooms/toilets are always in a clean and hygienic state. 0 0 0 0 0 1 2 3 4 5
TIPS When a question refers to the organisation, think of your immediate department within the chain/ business unit you are working, ie Edgars, United Retail, Manufacturing, etc. Please answer all the questions and choose only one answer per question. If a question does not apply to you, please leave it out.
10
Strongly Disagree Unsure Agree Strongly Disagree
Agree
EMPLOYMENT EQUITY 187. Employment Equity is a strategic priority at EDCON. 0
1 0 2
0 3
0 4
188. I know the reasons for the existence of the Employment Equity programme.
0 1
0 2
0 3
0 4
0 5
189. My manager is skilled in managing diversity. 0 1
0 2
0 3
0 4
0 5
190. The Employment Equity programme will not lead to the lowering of standards.
0 1
0 2
0 3
0 4
0 5
191. EDCON has a good reputation as an Affirmative Action employer. 0 0 0 0 0 1 2 .3 4 5
192. Employment Equity is not reverse discrimination. 0 O 0 0 0 1 2 3 4 5
193. Whites at EDCON do not have any fears because of Employment 0 0 0 0 0
Equity. 1 2 3 4 5
194. Blacks at EDCON have realistic expectations about the 0 0 0 0 0
Employment Equity programme. 1 2 3 4 5
195. Employment Equity is necessary to address the imbalance of the 0 0 O. 0 0
past. 1 2 3 4 5
196. All races are provided with the same opportunities at EDCON. 0 0 0 0 0 1 2 3 4 5
197. Management is not only talking about Employment Equity, but 0 0 0 0 0
enough is being done in practice. 1 2 3 4 5
198. Different races mix in the canteen. 0 0 0 0 0 1 2 3 4 5
199. I support the Employment Equity programme of EDCON. 0 0 0 0 0 1 2 3 4 5
200. Different race groups respect each other at EDCON. 0 0 0 0 0 1 2 3 4 5
201. The different race groups understand each other's culture at 0 0 0 0 0
EDCON. 1 2 3 4 5
202. EDCON is committed to equality between males and females. 0 0 0 0 0 1 2 3 4 5
203. The selection procedures used by EDCON ensure that the best 0 D 0 0 0
person for the job is appointed. 1 2 3 4 5
204. Equality has been achieved at EDCON in terms of promotion 0 0 0 0 0 opportunities. 1 2 3 4 5
205. I know how Employment Equity will affect me. 0 3 0 0 0 1 2 3 4 5
206. EDCON's culture is supportive of Employment Equity. . 0 0 0 0 0 1 2 3 4 5
207. Racism seldom occurs at EDCON. 0 3 0 0 0 1 2 3 4 5
208. Discrimination against women seldom occurs at EDCON. O 3 0 0 0 1 2 3 4 5
209. From what I have seen, all employees at the same levels in the 0 0 0 0 0 organisation receive equal benefits. 1 2 3 4 5
210. From what I have seen, all employees at the same levels in the 0 0 0 0 0 organisation receive equal working conditions (ie offices, access to telephones).
1 2 3 4 5
211. Women have the same opportunities for advancement as their 0 D 0 0 0
male counterparts. 1 2 3 4 5
11
Strongly Disagree Unsure Agree Strongly
Disagree
Agree EMPLOYMENT EQUITY (continued
Favouritism seldom occurs at EDCON 0 0 0 0 0 1 2 3 4 5
There is no discrimination regarding pay at EDCON. 0 0 0 0 0 1 2 3 4 5
Strongly Disagree Unsure Agree Strongly .
Disagree
Agree
COMMUNICATION I receive information I need to do my job properly. 0
1 0 2
0 3
0 4
0 5
The information EDCON officially communicates to its employees can always be believed.
0 1
0 2
0 3
0 4
0 5
EDCON management listens to the ideas and opinions of its employees.
0 1
0 2
0 3
0 4
0 5
Company policies and rules are clearly communicated to employees. 0 1
0 2
0 3
0 4
0 5
My department receives information about what is happening in other 0 0 0 0 0 departments. 1 2 3 4 5
In the work situation, communication flows freely between 0 0 0 0 0 colleagues and supervisors. 1 2 3 4 5
The following sources supply me with sufficient information about EDCON and my work environment:
EDCON Vibe 0 0 0 0 0 1 2 3 4 5
Booklets/pamphlets 0 0 0 0 0 1 2 3 4 5
Information/Notice boards 0 0 0 0 0 1 2 3 4 5
My Manager 0 0 0 0 0 1 2 3 4 5
Human Resources 0 0 0 0 0 1 2 3 4 5
Staff meetings 0 0 0 0 0 1 2 3 4 5
Internal memos (letters) 0 0 0 0 0 1 2 3 4 5
The internal E-mail 0 0 0 0 0 1 2 3 4 5
Early morning training sessions (EMT's) 0 0 0 0 0 1 2 3 4 5
TIPS When a question refers to the organisation, think of your immediate department within the chain/ business unit you are working, ie Edgars, United Retail, Manufacturing, etc. Please answer all the questions and choose only one answer per question. If a question does not apply to you, please leave it out.
12
- SECTION 2 -
BIOGRAPHICAL INFORMATION
This information will be used to analyse various groups within the organisation to understand their perceptions.
Individual information is anonymous and there is no way that your line manager can trace your responses back to
you.
A Your age (I) ONE of the following boxes
Less than 25 years old 01 25 — 39 02 40 — 54 03 55 or older 04
B Years of service with EDCON (I) ONE of the following boxes
Less than 1 year 01 1 year, but less than 5 years 02 5 years, but less than 10 years 03 10 years, but less than 20 years 04 20 years or more 05
C. What is your employment status? (✓ ) one of the following boxes:
Band TYPICAL JOBS (✓ )
Permanent Part Timers (PPT)
Band A — Operators/Clerical/Administrators
Sales Associates Secretaries Clerks Administrators
Band B — Support/Junior Specialist/Supervisory
Supervisors Assistant Buyer/Planner Customer Services Supervisor
Band C — Junior Management/Specialists
Buyers/Planners Collections Managers Retail Auditor
Band D — Operations Middle Management/ Senior Specialists
Divisional Controllers Specialist Buyers Accountant
Band E - Senior Management/Experienced Specialists
Divisional Buying Managers Executive Managers Divisional Planning Managers
Band F — Executives
Executives
13
Male
Female
1
2
Yes 01
Do you have a disability? (J) ONE of the following boxes
No 0 2
D In which chain/business unit do you work? (J) ONE of the following boxes
EDCON Head Office Cl 1
Edgars 0 2
United Retail Cl 3
Manufacturing Cl 4
Financial Services 0 5
Group Distribution 0 6
Your gender? ( I) ONE of the following boxes
F Your race? ( I) ONE of the following boxes
African 0 1
Coloured 0 2
Asian 0 3
White 0 4
14
AFFIENICEX C.
APTENMX ID,
RESULTS FOR STORE: CRESTA
CO22 2003 Wocicn00000 Neutral Strengths Weaknesses Neutral Strengths
Traininn Opportunities 111. EDCON provides sufficient training in the technical skills involved in my job. 44.9 23.8 31.3 43.3 16.2 40.5 115. I have received the training I need to do my job well. 23.7 18.8 57.5 55.0 0.9 44.1 TOTAL 34.3 21.3 44.4 49.2 8.6 42.3
Promotional Opportunities 110. EDCON's educational (study) assistance programme helps employees qualify for better jobs.
43.7 18.8 37.5 15.3 4.5 80.2 112. EDCON helps me to plan my career development. 46.2 17.9 35.9 34.2 13.5 52.3 TOTAL 45.0 18.4 36.7 24.8 9.0 66.3
Development 113. EDCON provides training programmes that meet my personal development needs. 37.0 24.7 38.3 52.3 7.2 40.5 114. Staff development is one of the key objectives of EDCON. 38.2 15 48.8 53.2 1.8 45 116. I have a detailed career plan. 17.2 27.2 55.6 44.6 4.5 50.9 TOTAL 30.1 22.3 47.6 50.0 4.5 45.5
Job Chollormos 35. My job provides sufficient challenge. 20.7 12.2 67.1 21.0 4.4 74.6 151. EDCON has a stimulating and challenging environment. 24.4 28.2 47.4 16.2 7.2 76.6 TOTAL 22.6 20.2 57.3 18.6 5.8 75.6
Working Environment 32. The physical (work environment) set-up at work allows me to achieve my objectives 35.0 19.5 45.5 21.4 5.4 73.2
The store/department I work in is kept clean and neat. 15.0 5 80 3.5 4.4 92.1 My refreshment needs (tea, coffee, water) are adequately catered for. 40.5 10.1 49.4 27.0 2.6 70.4 I am comfortable working in this store/department. 23.4 13.8 63 9.9 2.7 87.4 I have adequate physical working space. 28.7 15 56.3 20.5 5.4 74.1
TOTAL 28.8 12.0 58.8 16.5 4.1 79.4
Support 148. EDCON encourages its employees to be involved in their jobs. 19.7 17.3 63 7.9 2.7 89.4 TOTAL 19.7 17.3 63.0 7.9 2.7 89.4
Respect 146. EDCON treats its employees with respect. 34.5 27.2 38.3 27.3 4.5 68.2 157. My indMduality is respected at EDCON. 51.9 20.3 27.8 20.5 4.7 74.8 TOTAL 43.2 23.8 33.1 23.9 4.6 71.5
Trust 122. Employees in my department trust one another. 25.3 25.3 49.4 14.4 2.7 82.9 125. I trust my immediate supervisor/manager. 14.6 23.2 62.2 15.4 5.5 79.1 215. The information EDCON officially communicates to its employees can always be believed 25.6 30.8 43.6 21.5 8 70.5 TOTAL 21.8 28.4 51.7 17.1 5.4 77.5
Sufficient Available Resources 30. The resources I use to carry out my work are sufficient. 29.1 16.5 54.4 17.0 0.9 82.1 TOTAL 29.1 18.5 54.4 97.0 0.9 82.1
Relationships 117. In my department, we work together as a team. 19.5 7.3 73.2 9.8 0.9 89.3 119. The people I work with are pleasant 11.4 17.7 70.9 10.9 0.9 88.2 124. Within my department we motivate and support each other. 15.6 15.7 68.7 12.8 3.7 83.5 TOTAL 15.5 13.8 70.9 11.2 1.8 87.0
Pay From what I have seen, all employees at the same levels in the organisation receive equal
benefits. 47.4 24.4 28.2 34.9 6.4 58.7 From what I have seen, all employees at the same levels In the organisation receive equal working
conditions (le offices, access to telephones) 52.5 15 32.5 34.3 4.6 61.1 213. There is no discrimination regarding pay at EDCON. 59.2 26.3 14.5 50.0 5.6 44.4 TOTAL 53.0 21.9 25.1 39.7 5.5 54.7
RESULTS FOR STORE: EASTGATE
2002 2003 Wocknormoo Neutral Strengths weaknesses Neutral Strengths
Training Opportunities 111. EDCON provides sufficient training in the technical skills involved in my job. 48.8 10.5 40.7 36.6 10.2 53.2
115. I have received the training I need to do my job well. 39.3 4.5 56.2 33.7 6.1 60.2
TOTAL 44.1 7.5 48.5 35.2 8.2 58.7
Promotional Opportunities 110. EDCON's educational (study) assistance programme helps employees qualify for better Jobs.
40.7 9.3 50 27.4 13.4 59.2
112. EDCON helps me to plan my career development. 57.5 11.5 31 42.2 15.7 42.1
TOTAL 49.1 10.4 40.5 34.8 14.6 50.7
Development 113. EDCON provides training programmes that meet my personal development needs. 55.7 8.8 37.5 36.4 12.3 51.3
114. Staff development is one of the key objectives of EDCON. 42.1 13.6 44.3 26.9 11 62.1
116. I have a detailed career plan. 43.2 13.6 43.2 38.8 15.5 45.7
TOTAL 47.0 11.3 41.7 34.0 12.9 53.0
Job Challenges 35. My job provides sufficient challenge. 22.8 13.6 83.6 26.5 10.8 62.7
151. EDCON has a stimulating and challenging environment. 29.6 31.8 38.6 28.0 16.2 55.8
TOTAL 28.2 22.7 51.1 27.3 13.5 59.3
Working Environment 32. The physical (work environment) set-up at work allows me to achieve my objectives 44.2 9.3 46.5 36.6 10.6 52.8
The store/department I work in is kept clean and neat. 18.2 1.1 80.7 14.2 4.1 81.7
My refreshment needs (tea, coffee, water) are adequately catered for. 35.2 5.7 59.1 43.3 4.5 52.2
I am comfortable working in this store/department. 20.7 5.7 73.6 22.7 8.5 68.8
I have adequate physical working space. 25.9 9.4 64.7 25.4 6.6 68
TOTAL 28.8 3.2 64.9 28.4 6.9 64.7
Support 148. EDCON encourages its employees to be involved in their jobs. 19.1 19.1 61.8 16.3 11.4 72.3
TOTAL 19.1 19.1 61.8 16.3 11.4 72.3
Rospoct 146. EDCON treats its employees with respect. 50.5 16.9 32.6 40.4 13.5 46.1
157. My individuality is respected at EDCON. 46.6 15.9 37.5 26.9 28.5 44.6
TOTAL 48.8 10.4 35.1 33.7 21.0 45.4
Trust 122. Employees in my department trust one another. 32.6 19.1 48.3 32.3 17.1 50.6
125. I trust my immediate supervisor/manager. 18.5 25.3 58.2 29.1 13.1 57.8
215. The information EDCON officially communicates to its employees can always be believed 40.9 14.8 44.3 28.9 21.9 49.2
TOTAL 30.0 18.7 50.3 30.1 17.4 52.5
Sufficient Available Resources 30. The resources I use to carry out my work are sufficient. 34.1 9.4 56.5 24.8 10.7 64.5
TOTAL 34.1 0.4 56.5 24.8 10.7 64.5
Relationships 117. In my department, we work together as a team. 22.0 3.3 74.7 20.7 5.9 73.4 119. The people I work ■Mth are pleasant. 14.9 13.8 71.3 15.5 8.1 76.4 124. Within my department we motivate and support each other. 25.5 15.6 58.9 20.1 10.8 69.1 TOTAL 20.8 10.0 68.3 18.8 8.3 73.0
Pay From what I have seen, all employees at the same levels in the organisation receive equal
benefits. 45.3 29.1 25.6 46.9 20.5 32.6 From what I have seen, all employees at the same levels In the organisation receive equal working
conditions (le offices, access to telephones) 62.1 16.1 21.8 42.3 12.5 45.2
213. There is no discrimination regarding pay at EDCON. 46.0 31.5 22.5 49.6 29.5 20.9 TOTAL 51.1 25.0 23.3 46.3 20.8 32.9
RESULTS FOR STORE: EASTRAND MALL
2002 2003 WocIal00000 Neutral Strengths weaknesses Neutral Strengths
Tralnin_p Opportunities 111. EDCON provides sufficient training in the technical skills involved in my job. 46.8 12.7 40.5 60.9 15.9 23.2 115. I have received the training I need to do my lob well. 39.8 5.5 54.7 64.7 0 35.3 TOTAL 43.3 9.9 47.8 62.8 8.0 29.3
Promotional Opportunities 110. EDCON's educational (study) assistance programme helps employees qualify for better jobs.
35.9 16.4 47.7 16.4 14.9 68.7 112. EDCON helps me to plan my career development. 53.2 13.5 33.3 39.4 18.3 42.3 TOTAL 44.6 15.0 40.5 27.9 16.6 55.5
Development 113. EDCON provides training programmes that meet my personal development needs. 45.4 14.8 39.8 66.7 10.1 23.2 114. Staff development is one of the key objectives of EDCON. 32.0 16 52 68.2 7.2 24.6 116. I have a detailed career plan. 31.5 15.7 52.8 44.1 29.4 26.5 TOTAL 33.3 95.5 48.2 59.7 15.6 24.8
Job Challenges 35. My job provides sufficient challenge. 19.2 12.3 68.5 18.3 12.7 69 151. EDCON has a stimulating and challenging environment. 28.8 15.2 56 17.7 14.7 67.6 TOTAL 24.0 13.8 62.3 18.0 13.7 68.3
Working Environment 32. The physical (work environment) set-up at work allows me to achieve my objectives 37.1 15.7 47.2 15.2 18.1 66.7
The store/department I work in is kept clean and neat. 7.1 2.3 90.6 9.7 0 90.3 My refreshment needs (tea, coffee, water) are adequately catered for. 34.7 5.5 59.8 30.0 5.7 64.3 I am comfortable working in this store/department. 22.8 8.7 68.5 11.1 2.8 86.1 I have adequate physical working space. 27.5 8.7 63.8 20.9 8.3 70.8
TOTAL 29.8 8.2 66.0 97.4 7.0 75.8
Support 148. EDCON encourages its employees to be involved in their jobs. 24.6 10.3 65.1 4.1 8.1 87.8 TOTAL 24.6 10.3 65.1 4.1 8.1 87.8
Respect 146. EDCON treats its employees with respect. 49.7 15.7 34.6 35.1 17.6 47.3 157. My individuality is respected at EDCON. 47.2 15 37.8 19.7 21.1 59.2 TOTAL 48.5 95.4 36.2 27.4 19.4 53.3
Trust 122. Employees in my department trust one another. 19.5 10.2 70.3 18.9 18.9 62.2 125. I trust my immediate supervisor/manager. 19.4 24.8 55.8 20.2 17.6 62.2 215. The information EDCON officially communicates to its employees can always be believed 34.2 20.6 45.2 17.1 26.6 56.3 TOTAL 24.4 18.5 57.1 18.7 29.0 60.2
Sufficient Available Resources 30. The resources I use to carry out my work are sufficient. 32.8 12.8 54.4 9.7 5.6 84.7 TOTAL 32.8 12.8 54.4 9.7 5.6 84.7
Relationships 117. In my department, we work together as a team. 10.3 0 89.7 10.8 0 89.2 119. The people I work with are pleasant. 9.9 9 81.1 5.8 5.8 88.4 124. Within my department we motivate and support each other. 9.3 6.2 84.5 12.4 6.8 80.8 TOTAL 9.8 5.1 85.1 9.7 4.2 86.1
Pay From what I have seen, all employees at the same levels in the organisation receive equal
benefits. 56.5 20.2 23.3 25.8 21 53.2 From what I have seen, all employees at the same levels In the organisation receive equal working
conditions (le offices, access to telephones) 63.3 12.5 24.2 38.1 14.3 47.6 213. There is no discrimination regarding pay at EDCON. 61.6 19.2 19.2 29.7 28.1 42.2 TOTAL 60.5 17.3 22.2 39.2 21.1 47.7
RESULTS FOR STORE: MENLYN
2002 2003 Workn00000 NOUtral Strengths Weaknesses Neutral Strengths
Training Opportunities 111. EDCON provides sufficient training in the technical skills involved in my job. 43.2 16.8 40 34.4 10.4 55.2
115. I have received the training I need to do my job well. 41.7 13.4 44.9 29.9 8.6 61.5
TOTAL 42.5 15.1 42.5 32.2 9.5 58.4
Promotional Opportunities 110. EDCON's educational (study) assistance programme helps employees qualify for better Jobs.
46.8 15.9 37.3 33.1 21.2 45.7
112. EDCON helps me to plan my career development. 59.5 18.3 22.2 47.6 16.2 36.2
TOTAL 53.2 17.1 29.8 40.4 18.7 41.0
Development 113. EDCON provides training programmes that meet my personal development needs. 55.2 13.6 31.2 40.8 10.6 48.6
114. Staff development is one of the key objectives of EDCON. 40.2 18.1 41.7 22.8 17.2 60
116. I have a detailed career plan. 37.0 22.8 40.2 30.4 16.6 53
TOTAL 44.1 10.2 37.7 31.3 14.8 53.9
Job Challonnes 35. My job provides sufficient challenge. 30.8 12.9 56.5 21.8 9.2 69
151. EDCON has a stimulating and challenging environment. 32.8 20.8 46.4 25.3 18 56.7
TOTAL 31.7 16.9 51.5 23.6 13.6 62.9
Working Environment 32. The physical (work environment) set-up at work allows me to achieve my objectives 41.5 14.6 43.9 35.0 13.1 51.9
The store/department I work in is kept clean and neat. 11.1 3.9 85 12.6 1.6 85.8
My refreshment needs (tea, coffee, water) are adequately catered for. 32.0 9.8 58.4 24.7 5.5 69.8
I am comfortable working in this store/department. 21.9 12.2 65.9 18.1 8.5 73.4
I have adequate physical working space. 29.4 8.7 61.9 32.4 9.5 58.1
TOTAL 21.2 9.8 63.0 24.6 7.6 67.8
Support 148. EDCON encourages its employees to be involved in their jobs. 26.4 14.4 59.2 16.9 11.9 71.2
TOTAL 26.4 14.4 59.2 16.9 11.9 71.2
Respect 146. EDCON treats its employees with respect. 44.8 28 27.2 41.5 21.3 37.2
157. My indMdualrty is respected at EDCON. 50.8 16.1 33.1 25.2 33.3 41.5
TOTAL 47.8 22.1 30.2 33.4 27.3 39.4
Trust 122. Employees in my department trust one another. 35.5 22 42.5 27.7 20.4 51.9
125. I trust my immediate supervisor/manager. 25.4 22.2 52.4 27.0 14.1 58.9
215. The Information EDCON officially communicates to its employees can always be believed 33.0 21 46 24.3 26 49.7
TOTAL 31.3 21.7 47.0 26.3 20.2 53.5
Sufficient Available Resources 30. The resources I use to carry out my work are sufficient. 33.1 13.4 53.5 32.0 8.3 59.7
TOTAL 33.1 13.4 53.5 32.0 8.3 59.7
Relationships 117. In my department, we work together as a team. 25.2 4.7 70.1 15.0 2.7 82.3
119. The people I work with are pleasant. 16.3 12.8 70.9 12.3 7.8 79.9
124. Within my department we motivate and support each other. 20.6 11.9 67.5 16.5 9.3 74.2 TOTAL 20.7 ;.8 69.5 14.6 6.6 78.8
Pay From what I have seen, all employees at the same levels in the organisation receive equal
benefits. 52.4 25 22.6 50.3 22.5 27.2 From what I have seen, all employees at the same levels in the organisation receive equal working
conditions (Ie offices, access to telephones) 58.4 13.6 28 51.1 14 34.9
213. There is no discrimination regarding pay at EDCON. 61.1 15.1 23.8 53.1 26.8 20.1 TOTAL 57.3 17.9 24.8 51.5 21.1 27.4
RESULTS FOR STORE: SANDTON
2002 2003 INocknoosoo Noutral Strengths Weaknesses Neutral Strengths
TraIninn Opportunities 111. EDCON provides sufficient training in the technical skills involved in my job. 35.6 11.4 53.0 28.0 10.3 61.7
115. I have received the training I need to do my job well. 35.0 4.2 60.8 32.4 7.8 59.8
TOTAL 35.3 Y.8 53.9 30.2 9.1 60.8
Promotional Opportunities 110. EDCON's educational (study) assistance programme helps employees qualify for better Jobs.
32.5 12.7 54.8 24.1 16.3 59.6
112. EDCON helps me to plan my career development. 48.7 13.0 38.3 39.7 13.1 47.2
TOTAL 40.8 12.9 46.6 31.9 14.7 53.4
Development 113. EDCON provides training programmes that meet my personal development needs. 37.0 9.1 53.9 33.7 13.5 52.8
114. Staff development is one of the key objectives of EDCON. 26.4 12.3 61.3 20.2 12.4 67.4
116. I have a detailed career plan. 28.9 14.7 56.4 25.7 15.8 58.5
TOTAL 30.8 92.0 57.2 26.5 13.9 59.6
Job Chalionsos 35. My job provides sufficient challenge. 20.6 6.7 72.7 16.8 6.0 77.2
151. EDCON has a stimulating and challenging environment. 28.8 11.6 59.8 19.1 13.0 67.9
TOTAL 24.8 9.2 66.3 18.0 9.5 72.6
Wortdng Environment 32. The physical (work environment) set-up at work allows me to achieve my objectives 33.8 11.0 55.2 24.6 12.0 63.4
The store/department I work in is kept clean and neat. 18.4 1.8 81.8 8.0 1.6 90.4
My refreshment needs (tea, coffee, water) are adequately catered for. 19.3 3.1 77.6 27.4 3.8 68.8
I am comfortable working in this store/department. 21.7 5.8 72.7 14.3 8.8 76.9
I have adequate physical working space. 24.3 3.7 72.0 16.9 5.5 77.6
TOTAL 23.1 5.0 71.9 18.2 6.3 75.4
Support 148. EDCON encourages its employees to be involved in their jobs. 17.8 7.9 74.5 8.6 8.0 83.4
TOTAL 17.6 7.9 74.5 8.6 8.0 83.4
Respect 146. EDCON treats its employees with respect. 45.5 9.7 44.8 33.3 15.3 51.4
157. My individuality is respected at EDCON. 49.1 9.8 41.1 24.6 20.2 55.2
TOTAL 47.3 OA 43.0 29.0 17.8 53.3
Trust 122. Employees in my department trust one another. 24.3 15.9 59.8 20.9 15.5 63.6
125. I trust my immediate supervisor/manager. 19.3 23.5 57.2 24.6 16.0 59.4
215. The information EDCON officially communicates to its employees can always be believed 30.6 18.0 _4 53.4 22.3 20.6 57.1 TOTAL 24.7 10.5 56.8 22.6 17.4 60.0
Sufficient Available Resources 30. The resources I use to carry out my work are sufficient. 29.3 5.5 65.2 23.4 9.2 67.4 TOTAL 29.3 5.5 65.2 23.4 9.2 67.4
Relationships 117. In my department, we work together as a team. 17.5 3.6 78.9 19.1 2.7 78.2 119. The people I work with are pleasant. 7.8 3.8 88.6 10.0 3.9 86.1 124. Within my department we motivate and support each other. 15.7 1.2 83.1 14.0 5.4 80.6 TOTAL 13.6 2.9 83.5 14.4 4.0 81.6
Pay From what I have seen, all employees at the same levels in the organisation receive equal
benefits. 50.3 15.3 34.4 44.9 19.7 35.4 From what I have seen, all employees at the same levels in the organisation receNe equal working
conditions (le offices, access to telephones) 55.8 7.4 36.8 46.9 15.8 37.3 213. There is no discrimination regarding pay at EDCON. 58.3 19.8 22.1 53.8 25.1 21.1 TOTAL 54.8 14.1 31.1 48.5 20.2 31.3
RESULTS FOR STORE: WESTVILLE
2002 2003 Wm:knots:leo Neutral Strengths Weaknesses Neutral Strengths
Training Opportunities 111. EDCON provides sufficient training in the technical skills involved in my job. 38.2 12.5 49.3 41.2 8.8 50
115. I have received the training I need to do my job well. 28.4 4.9 66.7 39.3 4.7 56
TOTAL 33.3 8.7 58.0 40.3 6.8 53.0
Promotional Opportunities 110. EDCON's educational (study) assistance programme helps employees qualify for better Jobs.
27.1 13.9 59 15.2 8.2 76.6
112. EDCON helps me to plan my career development. 47.5 14 38.5 33.9 13.2 52.9
TOTAL 37.3 14.0 48.8 24.6 10.7 64.8
Development 113. EDCON provides training programmes that meet my personal development needs. 48.8 6.3 46.9 45.2 6.4 48.4
114. Staff development is one of the key objectives of EDCON. 36.1 11.1 52.8 42.4 5.8 51.8
116. I have a detailed career plan. 35.7 9.8 54.5 29.6 16.1 54.3
TOTAL 39.5 OA 51.4 39.1 9.4 51.5
Job Challenges 35. My job provides sufficient challenge. 27.3 9.8 62.9 23.6 5 71.4
151. EDCON has a stimulating and challenging environment. 33.3 13.5 53.2 11.8 9.2 79
TOTAL 30.3 11.7 58.1 17.7 7.1 75.2
INorking Environment 32. The physical (work environment) set-up at work allows me to achieve my objectives 30.8 10.5 58.7 17.6 4 78.4
The store/department I work in is kept clean and neat. 8.4 0 91.6 3.0 0.5 96.5
My refreshment needs (tea, coffee, water) are adequately catered for. 23.1 2.1 74.8 10.7 0.5 88.8
I am comfortable working in this store/department. 18.7 4.9 76.4 9.9 2.5 87.6
I have adequate physical working space. 16.3 1.4 82.3 12.7 1.5 85.8
TOTAL 19.5 3.8 76.8 10.8 1.8 87.4
Support 148. EDCON encourages its employees to be involved in their jobs. 20.8 6.3 72.9 8.0 5 87
TOTAL 20.8 6.3 72.9 8.0 5.0 87.0
Respect 146. EDCON treats its employees with respect. 44.4 16,7 38.9 21.5 7.5 71
157. My individuality is respected at EDCON. 58.5 7.7 33.8 20.0 15.4 64.6
TOTAL 51.5 12.2 36.4 20.8 11.5 67.8
Trust 122. Employees in my department trust one another. 34.0 12.8 53.2 33.0 9 58
125. I trust my immediate supervisor/manager. 18.9 18.3 64.8 20.9 5.5 73.6 215. The information EDCON officially communicates to its employees can always be believed 30.3 15.5 54.2 14.2 9.4 76.4 TOTAL 27.1 15.5 57.4 22.7 8.0 69.3
Sufficient Available Resources 30. The resources I use to carry out my work are sufficient. 25.7 8.3 66 15.1 4 80.9 TOTAL 25.7 0.3 66.0 15.1 4.0 80.9
Relationships 117. In my department, we work together as a team. 23.6 5.8 70.8 12.9 2 85.1
119. The people I work with are pleasant. 18.5 3.5 78 12.7 3.5 83.8 124. Within my department we motivate and support each other. 23.1 7 69.9 20.1 3 76.9 TOTAL 21.7 5.4 72.9 15.2 2.8 81.9
Pay From what I have seen, all employees at the same levels in the organisation receive equal
benefits. 50.4 15.6 34 39.2 11.6 49.2 From what I have seen, all employees at the same levels In the organisation receive equal working
conditions (le offices, access to telephones) 59.8 8.5 31.7 40.9 5.9 53.2 213. There is no discrimination regarding pay at EDCON. 62.0 16.9 21.1 44.9 17.3 37.8 TOTAL 57.4 13.7 28.9 41.7 11.6 46.7
RESULTS FOR STORE: WESTGATE
2002 2003 Wettameaoo Neutral Strengths Weaknesses Neutral Strengths
Training Opportunities 111. EDCON provides sufficient training in the technical skills involved in my job. 44.4 5.2 50.4 44.4 11.8 43.8
115. I have received the training I need to do my job well. 38.6 3.5 57.9 42.2 5.4 52.4
TOTAL 41.5 4.4 54.2 43.3 8.6 48.1
Promotional Opportunities 110. EDCON's educational (study) assistance programme helps employees qualify for better Jobs.
42.2 9.6 48.2 31.2 14.6 54.2
112. EDCON helps me to plan my career development. 53.1 6.2 40.7 43.2 17.1 39.7
TOTAL 47.7 7.9 44.5 37.2 15.9 47.0
Development 113. EDCON provides training programmes that meet my personal development needs. 49.6 6.1 44.3 53.8 10.5 35.7
114. Staff development is one of the key objectives of EDCON. 36.8 8.8 54.4 46.9 11 42.1
116.I have a detailed career plan. 40.0 7 53 47.2 13.9 38.9
TOTAL 42.9 7.3 50.6 49.3 99.8 38.9
Job Challenges 35. My job provides sufficient challenge. 34.8 1.7 63.5 26.4 12.5 61.1
151. EDCON has a stimulating and challenging environment. 34.8 13.9 51.3 23.6 21.5 54.9
TOTAL 34.8 7.8 57.4 25.0 17.0 58.0
Working Environment 32. The physical (work environment) set-up at work allows me to achieve my objectives 43.3 1.8 54.9 26.9 15.9 57.2
The store/department I work in is kept clean and neat. 7.8 0 92.2 3.4 2.7 93.9
My refreshment needs (tea, coffee, water) are adequately catered for. 31.9 3.4 64.7 30.4 5.5 64.1
I am comfortable working in this store/department. 32.8 6 61.2 21.2 11 67.8
I have adequate physical working space. 26.7 1.7 71.6 13.2 14.6 72.2
TOTAL 28.5 2.9 68.9 19.0 9.9 71.0
Support 148. EDCON encourages its employees to be involved in their jobs. 20.6 7.8 71.6 19.9 8.9 71.2
TOTAL 20.6 7.8 71.6 19.9 8.9 71.2
Rospoct 146. EDCON treats its employees with respect. 21.5 6.9 71.6 62.3 13 24.7
157. My IndMduality is respected at EDCON. 58.6 6.9 34.5 37.7 21.9 40.4
TOTAL 40.1 9.9 53.1 50.0 17.5 32.6
Trust 122. Employees in my department trust one another. 46.6 12.9 40.5 36.1 18.8 45.1
125. I trust my immediate supervisor/manager. 22.4 22.4 55.2 20.6 17.8 61.6 215. The information EDCON officially communicates to its employees can always be believed 33.9 12.5 53.6 26.4 32.6 41 TOTAL 34.3 95.9 49.8 27.7 23.1 49.2
Sufilcient Available Resources 30. The resources I use to carry out my work are sufficient. 34.8 5.2 60 27.3 11.2 61.5 TOTAL 34.8 5.2 60.0 27.3 19.2 61.5
Relationships 117. In my department, we work together as a team. 30.2 2.6 67.2 28.7 2.1 69.2
119. The people I work with are pleasant. 29.3 8.3 62.4 21.6 12.2 66.2 124. Within my department we motivate and support each other. 30.2 4.3 65.5 26.4 9.7 63.9 TOTAL 29.9 5.1 65.0 25.6 8.0 66.4
Pay From what I have seen, all employees at the same levels in the organisation receive equal
benefits. 60.9 8.7 30.4 51.1 23.4 25.5 From what I have seen, all employees at the same levels in the organisation receive equal working
condItkrts (le offices, access to telephones) 47.4 6.9 45.7 39.7 17.1 43.2 213. There is no discrimination regarding pay at EDCON. 84.7 6.9 28.4 55.5 21.2 23.3 TOTAL 57.7 7.S 34.8 48.8 20.6 30.7