Friday, February 22, 2008

Week 5: Enaging Employees Locally and Globally

From showing up for a job to being committed and passionate about work...

In the 90s, the Gallup organization identified an important insight--employee engagement is a fundamental organizational quality for workforce performance, and most companies do not have a conscious understanding of how to get employees routinely engaged. So they set out to articulate what employee engagement is, and how to manage in a manner that fosters high levels of engagement.

"Worker commitment is by no means the sole cause of success....But the evidence is clear that the creation and maintainence of high employee engagement, as one of the few determinants of profitability largely with in a company's control, is one of the most crucial imperatives of any successful organization...Because of the financial consequences of worker commitment, no executive can fully discharge...[his/her]...fiduciary responsibility to the shareholders while ignoring it" (Wagner and Harter, 2006, p. xvi)


"Many executives struggle to formulate a strategy for increasing profits through their employees. Often they resort to the simple arithmetic of fewer employees = lower costs, without considering the wide range in productivity that depends on each person's engagement."...Staff motivation, although difficult to quantify, should be part of the investment analysis" (p. xiii).

In 12: The Elements of Great Managing, Wagner and Harter (2006) spell out the key aspects for a worker to trust in their company of employement, and to be able to perfrom well. They are:
  1. I know what is expected of me at work.
  2. I have the material and equipment I need to di my work right.
  3. At work, I have the opportunity to do what I do best every day.
  4. In the last seven days, I have received recognition or praise for doing good work.
  5. My supervisor, or someone at work, seems to care about me as a person.
  6. There is someone at work who encourages my development.
  7. At work, my opinions seem to count.
  8. The mission or purpose of my company makes me feel my job is important.
  9. My associates or fellow employees are committed to doing quality work.
  10. I have a best friend at work.
  11. In the last six weeks, someone at work has talked to me about my progress.
  12. This last year, I have had opportunities to learn and grow.

As they state, "Behind each of these...[statements]...is a fundamental truth about human nature on the job. The correlations between each element and better performance not only draw roadmap to superior managing; they also reveal fascinating insights into how the human mind...reacts in a relatively new, artificial world of cubicles, projects timelines, corporate ambiguity, and constantly changing workgroup membership."

They continue: "People neither were created to fit corporate strategies nor have evolved to do so. Rather than contest these facts, the ,ost successful managers harness the drive, virtuosity, and spirit that come with employing humans, even as they understand the inevitable chinks in their armor" (p. xi-xii).

Pfeffer (1998), in The Human Equation: Building Profits by Putting People First advocates that companies can better stay competitive by "centering...on maintaining people and developing their skills and competencies" (p. 18). People are to "put first" (p. 304); and organizations are to operate as if people mattered: Capital and Machinary Make It Possible--People Make IT Happen" (p. 305". He list seven practices of successful companies:

  1. Employment security.
  2. Selective hiring of new personnel.
  3. Self-managed teams and decentralization of decision-making as basic principles of organizational design.
  4. Comparatively high compensation contingent on organizational performance.
  5. Extensive training.
  6. 6. Reduced status distinctions and barriers, including dress, language, office arrangements, and wage differences across levels.
  7. Extensive sharing of financial and performance information throughout the organization (pp. 64-65).

With this said, the challenge is how do these principles apply to and get implemented in a

  • business arena where organizations need to continuously evolve and adapt--make shifts, grow and shrink, etc.,
  • a technological and global work environment that is comprised of staffs and teams that are spread around the world, comprised of individuals and leaders from many cultures, and are networked via electronic communication and collaboration systems?

How does a company created a unified corporate identity? How do managers enable employee engagement across cultures in a dispersed workplace?

How is company loyalty expressed and job security offered in a workforce that is increasining needing workers on a contingent basis?

What is employment stability today, and how is it obtained? What are its core characteristics? How do employees develop careers in such a complex, shifting and ambiguous workplace?

What is succession planning in today's workplace? How can organizations and managers assist employees to develop their careers so they can aid the company to have the needed leaders and staff members, and help employees professionall grow and develop?

Chuck Piazza

8 comments:

deborah said...

Although I'm not crazy about the word "engagement" I understand the term and cannot think of a better one to describe someone who loves to go to work, loves what they're doing, is fully involved in their work. To maintain engagement, the environment has to continue to offer an evnironment of growth, excitement, advancement.
Creating a unified corporate identity across cultures still must rely on what everything seems to rely on - hiring the right people who believe in the culture (are fully engaged) who then hire others, etc, etc. If the mission, values, culture of a company are constantly re-visited when decisions are made then hopefully an organization can self-correct and never go too far from the defined culture. There is no way that personal contact cannot ever happen in a dispersed work force. At some point people have to pick up the phone, there has to be a "checks and balances" in place for management. I think the same applies for contingent workers. Contingent workers have to be made accountable for supporting the corporate culture just like everyone else. And, there are too many people who want to work for them not to. Contingent workers need to be held to the same standards. They cannot be resentful of their situation nor can they be arrogant, they need to behave in the same way as non-contingent workers. Expectatiosn need to be explicit in the contract.
I guess "stability" would be fulfilling whatever agreements have been made for a moment in time. Clear objectives, clear vision, clear communication moment by moment. There is no job security, so we put one foot in front of the other and "engage" ourselves in our work. Careers are built this way as well. Now it is acceptable to move from firm to firm. I believe what matters more is performance - did you accomplish or exceed what you said you woudl do? Companies know that there is no job security just as employees do. They need to match talent, skills, desire with company needs so everyone gets the most out of the relationship.

Todd LaVoy said...

A company creates a unified corporate identity by differentiating itself from the competition in some way. If a company has a new product they can be in business for themselves. If a company has competitors they have to find the niche and exploit it. A company can create a corporate identity by servicing its customers and providing products it is know for. Customers don't buy people they buy products. For instance; right now I am typing on a Dell Laptop I don't know where it was made or by whom but I purchased the product for its functionality, reliability, Name and because I have had great luck with Dell systems in the past. Corporate identity to me is associated with quality and features not who made the item or where it was assembled.
Managers manage employee engagement across cultures in a dispersed workplace by recognizing that there will be challenges and setting measurable performance objectives. I feel that as long as an employee is delivering a quality outcome in a reasonable amount of time, there should be no reason to "manage" them.
Employment stability today is maintained by working for ones self and realizing that job stability is a thing of the past. Employees of the here and now as well as the future will understand that there job is only temporary. Employees will switch jobs many times throughout there lives and flexibility will be the name of the game. Many people will have running tallies of what companies are hiring in which areas and will be ready with resumes and references at the drop of a hat. Employees and workers will understand that stability is a thing of the past and people will need to go where the money is.

Harpreet said...

Consistency is of utmost importance in today's business environment. A fresh, consistent corporate identity is a must today. One way to offer consistency to clients is to create a unified corporate identity.
A unified corporate identity is what sets a corporate apart from its competitors. To create a unified corporate identity a company has to offer the single most visible "product".

Managers can gain employee engagement across cultures in a dispersed workplace as follows:
1. Both managers and employees should use good group software. Managers should Run effective meetings by telephone, e-mail, video, and on the web.
2. Clear agreements on accessibility.
3. Establishing performance goals and expectations.
4. Building distance relationships and connections.
5. Managers should focus on outcomes, delivering corrective feedback and coaching for improvement.
6. Managers should develop employees. Employees are willing to give their all when they are well-treated, appreciated.
7. Setting up distance team for success. Managers should clearly defined roles for members.
8. Distance managers must be inclusive, empowering, supportive and trustworthy.
9. Managers should think of something nice they can say about each and every employee, then they should call and tell them. They should always be sincere and keep it related to work. They should not comment on things that will get them charged with harassment! Telling someone you admire their persistence or their attention to detail is a form of recognition and shows appreciation (something we all want). This will automatically increase the level of employee engagement.

A company loyalty can be expressed and job security can be offered in a workforce that increasingly needs workers on a contingent basis by more communication with both the core workers and contingent workers that their jobs are save. A company should give more preference to core workers as they are expected to be more loyal and are expected to stay longer in the company as they do not want to lose their benefits which company will provide them.

Today there is no employment stability especially when economy is getting bad to worse. The only way to obtain employment stability is to be valued to the upper management to stay longer. The core characteristics of employment stability are: to be open minded to learn new skills and be in loop, always be active and prompt to say “yes” for every assigned work. Employees should be flexible to go where they see progress in their career in order to develop careers in such a complex, shifting and ambiguous workplace.

Succession planning in today’s workplace is a process of determining critical roles within the company, identifying and assessing possible successors, and providing them with the appropriate skills and experience for present and future opportunities.
Organizations and managers can assist employees to develop their careers so they can aid the company to have the needed leaders and staff members, and help employees professionally grow and develop by the following ways:

• Managers should determine what roles and skills are critical for the growth of the company and encourage employees to get those skills in them.
• Managers should analyze and address the gaps revealed by the planning process and encourage employees to fill those gaps.
• Managers should identify and understand the developmental needs of employees.
• Managers should ensure that all key employees understand their career paths and the roles they are being developed to fill.
• Managers should train people for skills and positions that do not presently exist in the company.
Harpreet

Elizabeth said...

In my opinion a company can create a unified identity by first walking and talking the mission and vision of the organization. Leadership engagement with employees as it relates to the objectives of the organization, inclusion of visionary forecasts and decisions allows for a culture that in turn can be identified as unified. Inclusion, engagement, appreciation, growth and other positive factors attract and also yield retention of employees who not only perform for their financial obligations and satisfaction but also for a culture that is unified. To go to work and own the vision and mission is to be an engaged employee.
Today business happens anywhere and everywhere. A workforce that is dispersed and multicultural brings about a myriad of challenges to management. Again I will state that when a company has a strong focus and the message is delivered consistently across cultures employee’s engagement can be enabled. A consistent corporate message along with the inclusion of the element of engagement such as growth, motivation, excitement, appreciation will allow for the success of this concept across cultures in today’s workforce that is greatly dispersed.
Company loyalty still exists but changing workforce trends reflect a decline in this type of loyalty. A variety of factors including the portfolio applicant, contracted or contingent workers and other have contributed to this trend. The negative economy, the steady decline of experienced talent has been a factor in the temporary employment of contingent works. Contingent employees are cost effective.
There truly is no employment stability in today’s economy. Ten years ago stability meant knowing that your knowledge and skill was very important to the success of the company goals. Stability to me is knowing that the employer I work for is sustainable, progressive, innovative and has systems in place that yield growth and expansion.
Talent management is key to succession planning. The elements of talent management reflect the career growth pathways that need to be in place in a culture that promotes growth, and development.

Amaurita Kanai said...

Like the American Flag, which unifies so many people from so many different backgrounds, corporate identity acts as a focal point for employees and management to interact. Employees feel connected to each other through a sense of togetherness, being a part of a "cohort", and even for the dispersed employees, a sense of common history. Management can interact with lower levels through sharing personal company connections as they relate to the company culture and history, further strengthening the connection between all under the organization. In the end, we are social beings and we all want to feel as though we belong to a group.

Javier P. said...

It would be great if the human resource departments of all businesses are 100% accurate when they have to hire their employees for their open positions, avoiding friction to find and fit a worker in the right job. However, we know that is impossible to achieve. That’s why businesses try to homogenize worker behavior for client service. But it is still a bad practice because workers are dehumanized, falling into pattern behaviors, and consequently in a monotonous routine which leads to disengagement.

In order for managers to engage their workforce, they need to work from the top to the bottom expanding the business policies through all the employees. The top manager directs/teaches to his/her subordinate managers, and those subordinate managers direct/teach to his/her other subordinates, and so on. In this way every manager is responsible for a sector of the business and policy information is distributed cohesively at all levels. The problem is to see how effective the managers are delivering engaging speeches to their workforce. In this case, this is the job of human resources, to find the right managers for the key positions. I believe that freedom of action in the workforce is more open to engaging with clients than a mass of submissive employees that have to repeat what they are supposed to say to every single customer.

All this can succeed, if the right training is taught to all employees. However, as I said at the beginning, it is hard to expect from workers the same level of enthusiasm at training time, and at the time of interaction with the clients. The ones who do not fit the policies of the company must be put aside, and the formation of people with the capability to interact successfully with customers would be selected, little by little forming the ideal workforce.

Unknown said...

A company creates it identity by clearly defining and living by its defined vision. Its identity is its brand. Strong identities create strong brands. Apple, Google, Pantagonia, REI, Whole Earth emit strong corporate identities and culures. They attract people who want to buy their products and work in thier offices.

Employee engagement comes from working on something they believe in with people they enjoy working for and a company they feel proud of. Large companies have always had offices across the country. Expanding this across the globe follows the same mandate of buidling identity and engagement locally. The key ingredient is an employee who is there because he wants to be. A human is a human no matter their heritage. Treating them with respect, giving them opportunities to grow and succeed all contribute to their engagement.

Company loyalty is a dead concept for long term loyalty. The new definition of loyalty in a contingent world is loyalty between employer and worker for the length of the contract. Employee stability will be within a career path, not a company. Stability will not mean stagnation. Stabiity will be continued growth throughout the career by training, education and experience - trying new things and being always open to change.

As training has always been the bastion of the FTE and continues to diminish with less dollars to fund, employees will have to take growth and eduction into their own hands. This means they will have to pay for it (where FTE's often can get tuition reimbursement) and will have to get it after work hours which will be tiring after a hard day's work. Flexibility, adaptability and openness to change will be the mantra for today's successful worker. They will have to accept ambiguity and learn to live with it.

Succession planning will be interesting as there will be much fewer FTE's from whom to choose. It will be management's challenge to hire and be able to retain the top people with the incentive that the open top spots could be a place for them and mentor them into those roles.

It will not be as much of a company responsibility to assist their employees as it has been in the past. Highly skilled consultants will be brought in to do things that previously were done by folks who had worked their way up the company. As things change more rapidly, long experience in the company could be a hindrance versus a benefit. The old timers might be thought to be stuck in their ways and not open to change.

As more people want to be on the contingent side of the workforce, due to the opportuntity to do more varied and interesting things as well as get higher pay, it will be harder for companies to retain their top employees as FTE's. We could get back to an environement of the late 90's where the contingent workers are ready to change assignments at the drop of the hat due to more money, something different and more fun. In that type of environment, loyalty will be very expensive to buy.

Bob Storm said...

The company mission and vision statements are two components that management needs to define and live by in order to establish a corprate identity. Strong corprate identities such as IBM, Cisco, Yahoo and SF Giants are examples of company's with a strong corprate culture. Companys with a strong corprate culture and identity will draw potential employees.

By believeing in something, feeling you are a part of something big and proud to associate your name to your employeer you will feel engaged.

Company loyalty doesn't exist any longer. If a better opportunity comes along and it makes sense to take it the employee is gone. Company loyalty exists today only as long as you have a job. With outsourcing, companys are looking for ways to downsize. If you are outsourced, sorry. For contingent workers, job security is defined by the length of the contract they are working. Contingent workers don't look to the company for stability and job security they look to continued education and networking within their chosen field. Being flexible adn adaptible will be a part of a contingent workers creed.

I feel that many organizations haven't even thought through this part of the strategic plan. Those companys that have identified a person or persons from the full time employees (FTE) or even a contingent worker that has many of the qualifications, traits and attitudes desired will mentor that individual.