Page 174 - Bus101FlipBook

14-10 Human Relations [CH 14

praise four acts that an employee does right for every one action that they criticize.
Management demonstrated its commitment to the new approach by distributing a
mission statement that spells out the philosophy.
The second R involves sharing the rewards of the enterprise as equitably as
possible. Employees at Perfusion Services Inc. (PSI) receive a raise in every paycheck.
Every two weeks, workers of the Brighton, Michigan, firm, which provides equipment
and personnel to hospitals for open-heart surgery, find that their paychecks have
increased by at least a few dollars, sometimes much more. The firm's president
believes the "constant reward" pay structure better motivates employees and lets them
know they're doing a good job than does a system of annual performance reviews. "A
year is an interminably long period of time between raises, especially for short-term-
oriented people like ours. Make them wait that long and their eyes glaze over." The
firm's sales and profit performance support this approach. PSI is one of the fastest-
growing companies in the country, with an annual sales growth of 60 percent and an
after-tax profit of greater than 7 percent. By combining salary increases with an
implicit performance review, PSI keeps its employees happy—and motivated.
The third R is ensuring that employees have rights. These include some kind of
grievance procedure, access to corporate records, and the right to confront those in
authority without fearing reprisals. In addition to an annual meeting of corporate
shareholders, Stamford, Connecticut-based Pitney Bowes holds annual jobholders'
meetings at which employees can ask top executives anything. Not only does Federal
Express have a no-layoff policy and employee profit sharing, but it also has one of the
best grievance procedures in America where the individual can request a trial by their
peers. In addition, employees have a right to information. Any Federal Express
employee wanting to know how pay scales are set can find out.
Much similarity exists between Herzberg's two factors and Maslow's hierarchy of
human needs. Herzberg's message is that the lower-level needs have already been
satisfied for most workers, and the manager must focus on the higher-level needs—the
primary motivators.

What Factors Influence Employee Morale?

morale Morale is the mental attitude of employees toward their employer and their job. It
Mental attitude of involves a sense of common purpose with respect to the other members of the work
employees toward their group and to the organization as a whole. High morale is a sign of a well-managed
employer and/or job.
organization, because workers' attitudes toward their jobs affect the quality of the work
done.
One of the most obvious signs of poor manager-worker relations is poor morale. It
lurks behind absenteeism, employee turnover, slowdowns, and wildcat strikes; it
shows up in lower productivity, employee grievances, and transfers.

Burnout, a byword in business today, has no exact medical definition, but low
morale and fatigue are two common symptoms. The most likely burnout candidates are
those who care most about their jobs and the company, and they are more likely to

experience burnout when they feel a sense of futility and a lack of accomplishment.
Kenneth Pelletier, a stress management consultant and psychiatrist, believes a manager
can inspire workers by showing appreciation for effort. Appreciation is, according to
Pelletier, "the most underestimated benefit" he knows.
Management's view of what leads to high employee morale is often incorrect. One
research study compared how managers and workers ranked the importance of various
morale factors. As Table 14.2 indicates, managers chiefly emphasized the lower-order
needs of money and job security. But employees gave a quite different ranking.
Opinions varied significantly on the importance of such items as job security and
appreciation for work done. Other differences included the importance of fair pay,
promotion, and understanding of personal problems.
The maintenance of high morale means more than keeping employees happy. A
two-day workweek, longer vacations, or almost continual coffee breaks could easily
produce happy employees. But high morale results from an environment in which
workers obtain satisfaction from their work and are motivated to excel in their assigned
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