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Chapter 6 Managing the internal employee market


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Chapter 6 Managing the internal employee market

  2. 2. 6.1- Employees’ Influence On Customer And Organization
  3. 3. The Critical Importance of Service Employees They are the service (boundary spanner). They are the organization in the customer’s eyes. They are the brand (image carrier). They are marketers.
  4. 4.  evaluative statements (either favorable or unfavorable) concerning objects, people, or events.  reflect how one feels about something. ATTITUDES example: “I like my job.”
  5. 5. Cognitive = evaluation My superior gave a promotion to a coworker who deserved it less than me. My supervisor is unfair. Affective = feeling I dislike my supervisor! Behavioral = action I’m looking for other work; I’ve complained about my supervisor to anyone who would listen. Negative attitude toward supervisor ATTITUDES
  6. 6. Changing Attitudes •Employees’ attitudes can be changed and sometimes it is in the best interests of managements to try to do so. •For example, if employees believe that their employer does not look after their welfare, the management should try to change their attitude and help develop a more positive attitude in them. •However, the process of changing the attitude is not always easy.
  7. 7. Important Attitudes Related to Organizations Job Involvement - The degree to which a person identifies with a job, actively participates in it, and considers performance important to self-worth. Job Satisfaction - Is a set of favorable or unfavorable feelings and emotions with which employees view their work.  Organizational Commitment - The degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in the organization
  8. 8. JOB SATISFACTION Satisfaction with Pay Satisfaction with Promotion Satisfaction with Work Satisfaction with Supervision Satisfaction with Co-workers Organizational Commitment Involvement and Engagement
  9. 9. Causes of Job Satisfaction  Most people prefer work that is challenging and stimulating.  Jobs with good compensation have average job satisfaction levels. Money may be a motivator, but may not stimulate job satisfaction.  There is a link between a person’s personality and job satisfaction. Negative people are usually not satisfied with their jobs.
  10. 10. The Effect of Job Satisfaction on Employee Performance Satisfaction and Productivity Satisfied workers are more productive AND more productive workers are more satisfied! Worker productivity is higher in organizations with more satisfied workers. Satisfaction and Absenteeism Satisfied employees have fewer avoidable absences.
  11. 11. Satisfaction and Turnover Satisfied employees are less likely to quit. Organizations take actions to retain high performers and to weed out lower performers. Satisfaction and Customer Satisfaction Satisfied workers provide better customer service.
  12. 12. Job satisfaction & organizational citizenship behavior (OCB) Satisfied employees who feel fairly treated by and are trusting of the organization are more willing to engage in behaviors that go beyond the normal expectations of their job. Satisfied employees increase customer satisfaction because:  They are more friendly, upbeat, and responsive.  They are less likely to turnover, which helps build long-term customer relationships.
  13. 13. 6.2- Employees’ Retention and Loyalty: Motivating, Caring, Developing and Empowering Employees
  14. 14. Employee Retention A process in which the employees are encouraged to remain with the organization for the maximum period of time or until completion of the project. Employee retention is beneficial for the organization as well as the employee.
  15. 15. IMPORTANCE OF EMPLOYEE RETENTION  The cost of turnover.  Loss of company knowledge.  Interruption of operations.  Turnover leads to more turnovers.   Goodwill of Company.  Regaining efficiency.
  16. 16.  Job is not what the employee expected  No growth opportunities  Lack of appreciation  Lack of trust and support REASONS WHY EMPLOYEES LEAVE
  17. 17.  Stress from overwork  Compensation  New job offers  No personal life  Physical strains
  18. 18. EMPLOYEE RETENTION STRATEGIES  Hire the right person in right place  Empower the employee  Make them realize that they are valuable for Organization
  19. 19.  Have faith in them, trust & respect them  Provide information & knowledge  Give feedback on performance.  Recognize & appreciate their achievements.  Keep their morale high  Create healthy environment
  20. 20. Motivation 20 The forces either internal or external to a person that arouse enthusiasm and persistence to pursue a certain course of action
  21. 21. Types of Rewards Intrinsic Rewards ◦Internal satisfactions a person receives in the process of performing a particular action – empower employee or letting employee make choices on how they want to complete their work Extrinsic Rewards ◦Rewards given by another person, typically a supervisor, such as pay increases and promotions 21
  22. 22. A primary goal of employee empowerment is to give workers a greater voice in decisions about work-related matters. Their decision-making authority can range from offering suggestions to exercising veto power over management decisions. Possible areas include: how jobs are to be performed, working conditions, company policies, work hours, peer review, and how supervisors are evaluated Empowerment
  23. 23. Organizational Improvement through Employee Empowerment First, empowerment can strengthen motivation by providing employees with the opportunity to attain intrinsic rewards from their work, such as a greater sense of accomplishment and a feeling of importance. Intrinsic rewards such as job satisfaction and a sense of purposeful work can be more powerful than extrinsic rewards such as higher wages or bonuses. The second means by which employee empowerment can increase productivity is through better decisions. Especially when decisions require task-specific knowledge, those on the front line can often better identify problems.
  24. 24. Employees Retention involves five major things:  Compensation  Growth  Environment  Relationship  Support

Notas del editor

  • They are the service.
    in many cases, the contact employee is the service
    - we often DO NOT DISTINGUISH between the person and the firm
    (haircutting, child care, counseling, legal services)
    in these cases, the offering is the employee
    - other examples?
    They are the organization in the customer’s eyes.
    employees represent the firm to the client
    may be the ONLY contact they have with the firm
    e.g., Dixon Pest Control
    everything they say and do can influence perceptions of the organization
    even “off-duty” employees can influence perceptions
    They are marketers.
    they are walking “billboards”
    they represent the company and influence customer satisfaction
    they are salespersons
    (waiters selling dessert; AT&T operators cross-selling)