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Assignment 1
Words:4013
Submitted:Wed Aug 10 2011
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“In the current business environment, what role do job design and workforce diversity play in attempts to improve individual and organizational
performance.”
Human Resource Management
(HRM 502)
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Zaved Mannan
D-6 Tower Bhaban, Fuller Road
Dhaka University Campus
Dhaka 1000
Bangladesh
Student ID: 11320053
Date: 29.08.2010
Charles Sturt University
Australia
Table of Contents
Introduction 4
Job Design Defined 5
Workforce Defined 6
Workforce Diversity Defined 6
Performance Management 8
Role of Job Design in attempts
To Improve Performance 9
Job Specialization 9
Rotation 9
Job Enlargement 11
Job Enrichment 11
Job Characteristics Model 12
Empowerment 13
Role of Workforce Diversity in
Attempts to Improve Performance 15
High Quality Decision Making 15
Better Understanding and
Service of Customers 15
More Satisfied Workforce 16
Higher Stock Prices 16
Lower Litigation Expenses 17
Higher Company Performance 17
Job Design and Workforce Diversity 18
Tracking Diversity Metrics and
Diversity-Related Goals 18
Explicit Rewards for Increasing
Diversity and Diversity Training
Programs 19
Review Recruitment Practices 19
Conclusion 20
References 22
Introduction
Appropriately managed diverse workforce can represent a resource to the firm. The
diverse workforce may represent a unique combination of skills, experiences and
attributes that is not easily replicable or appropriable. Several surveys and researches
into effective diversity use and management suggests the difference inherent in a
diverse workforce can be a positive influence on organizations, particularly in relation
decision-making, innovation, creativity and globalization.
Job design is important to influence employee motivation. HR manager must consider
motivational issues in designing jobs to achieve effective performance of both
individual and organization.
The first purpose of this review is to define and analyze few key HR concepts.
Research on job design, workforce diversity and performance management will be
reviewed. The second purpose of this review is to critically evaluate the role of both
job design and workforce diversity in attempts to improve individual and
organizational performance. The third purpose of this review is to integrate job design
and workforce diversity. If HR managers design jobs in such way that promotes and
manages workforce diversity in an organization, then both individual and organization
will have improved performance in the current business environment.
Job Design Defined
A job consists of a related set of tasks that are carried out by a person to fulfill a
purpose (Davis, 1966). Job design has been defined by Noe et al (2010) as: “is the
process of defining how work will be performed and the tasks that will be required in
a given job. Job redesign refers to changing the tasks or the way work is performed in
an existing job.”
Job design has two aims (Davis, 1966):
To satisfy the requirements of the organization for productivity, operational
efficiency and quality of product or service;
To satisfy the needs of the individual for interests, challenge and
accomplishments, thus providing for ‘job engagement.
Clearly these aims are interrelated and the overall objective of job design is to
integrate.
Job design influences employee motivation. Therefore, HR manager must consider
motivational issues in designing jobs to achieve effective performance (Ramlall,
2004).
The job designer can then consider how the jobs can be set up to provide the
maximum degree of intrinsic motivation for those who have to carry them out with a
view to improving performance and productivity (Wilson’s, 1973). The outcome of
job design may be a job description.
Workforce Defined
Bartol at all (2010) defined workforce as “is people employable by the organization.”
Organizations recruit employees from the external labor market. “The external labor
market includes persons actively seeking employment (Noe et al, 2010)
Workforce Diversity Defined
“Diversity refers to the individual’s visible and invisible distinguishing
characteristics” (Bartol et al, 2010). Diverse workforce can be divided into two
dimensions: primary and secondary dimensions. These two dimensions are described
in table 1 (Bartol et al, 2010):
Table 1 Diversity of DimensionsPrimary Dimensions Secondary DimensionsAge
Race
Gender
Physical ability
Ethnicity
Sexual orientation
Education
Religious beliefs
Military Experience
Geographic location
Income
Work background
Parental status
Marital status
According to Table 1, primary dimensions refers to those characteristics people
possess when they born (e.g. race, age, gender) and secondary dimensions refers to
those characteristics people acquired during a person’s lifetime (e.g. education,
marital status, income).
There are always certain groups in any society that are discriminated against
unfavorably due to the prejudices and preconceptions of the people with whom they
have to deal. The effects of this can be seen in the employment arena. Disadvantaged
groups who have already been identified are (Braham, P., Rhodes, E. and Pearn, M.,
1981):
Women;
People from other racial backgrounds;
Disabled people; and
Older people.
The types of preconception that still affect the employment of these four groups are,
for example, that women do not want too much responsibility at work or they are less
reliable workers because of their home commitments; that employees would not want
to work for a black supervisor; that the ability to fill out an application for in good
English is an indication of an individual’s potential to do a manual job; that someone
who has suffered from mental illness will automatically crack up under the slightest
pressure; that older people are less adaptable; and that they have become less
interested in their careers (Braham, P., Rhodes, E. and Pearn, M., 1981).
Performance Management
When managing the performance of individuals and organization both inputs
(behavior) and outputs (results) need to be considered. This is the so called ‘mixed
model’ (Hartle, 1995) of performance management which covers competency levels
and achievements as well as objectives setting and review.
Therefore, Performance management in its fullest sense is based on the belief that
everything that people do at work at any level contributes to achieving the overall
purpose of the organizations. It is therefore concerned with what people do (their
work), how they do it (their behavior) and what they achieve (their results) (Hartle,
1995).
Role of Job Design in Attempts to Improve Performance
Many of us assume the most important motivator at work is pay. However, studies
point to a different factor as the major influence over worker motivation is job design.
How a job is designed has a major impact on employee motivation, job satisfaction,
commitment to an organization, absenteeism, and turnover.
Job specialization
There are a number of advantages to job specialization. Breaking tasks into simple
components and making them repetitive reduces the skill requirements of the jobs and
decreases the effort and cost of staffing. Training times for simple, repetitive jobs tend
to be shorter as well. On the other hand, from a motivational perspective, these jobs
are boring and repetitive and therefore associated with negative outcomes such as
absenteeism (Campion, M. A., & Thayer, P. W., 1987).
Rotation
When employees periodically move to different jobs, the monotonous aspects of job
specialization can be relieved (Denton, D. K.,1994). Using this technique, among
others, the company is able to reduce its turnover level. In a supermarket study,
cashiers were rotated to work in different departments. As a result of the rotation,
employees’ stress levels were reduced, as measured by their blood pressure.
Moreover, they experienced less pain in their neck and shoulders (Rissen, D., Melin,
B., Sandsjo, L., Dohns, I., & Lundberg, U., 2002).
Job rotation has a number of advantages for organizations. It is an effective way for
employees to acquire new skills and in turn for organizations to increase the overall
skill level of their employees (Campion, M. A., Cheraskin, L., & Stevens, M. J.,
1994). In addition, job rotation is a way to transfer knowledge between departments
(Kane, A. A., Argote, L., & Levine, J. M., 2005). Rotation may also have the benefit
of reducing employee boredom.
Anecdotal evidence suggests that companies successfully rotate high-level employees
to train managers and increase innovation in the company. For example, Nokia uses
rotation at all levels to bring a fresh perspective to old problems (Wylie, I., 2003).
Wipro Ltd., India’s information technology giant uses a 3-year plan to groom future
leaders of the company by rotating them through different jobs (Ramamurti, R.,
2001).
Job enlargement
By giving employees several different tasks to be performed, organizations hope to
reduce boredom and monotony as well as utilize human resources more effectively.
Research indicates that when jobs are enlarged, employees view themselves as being
capable of performing a broader set of tasks (Parker, S. K., 1998). There is some
evidence that job enlargement is beneficial, because it is positively related to
employee satisfaction and higher quality customer services, and it increases the
chances of catching mistakes (Campion, M. A., & McClelland, C. L., 1991). At the
same time, job enlargement consisting of adding tasks that are very simple in nature
had negative consequences on employee satisfaction with the job and resulted in
fewer errors being caught. Alternatively, giving employees more tasks that require
them to be knowledgeable in different areas seemed to have more positive effects
(Campion, M. A., & McClelland, C. L., 1993).
Job Enrichment
Job enrichment is a job redesign technique that allows workers more control over how
they perform their own tasks. This approach allows employees to take on more
responsibility. Companies using job enrichment may experience positive outcomes,
such as reduced turnover, increased productivity, and reduced absences (McEvoy, G.
M., & Cascio, W. F., 1985). This may be because employees who have the authority
and responsibility over their work can be more efficient, eliminate unnecessary tasks,
take shortcuts, and increase their overall performance. At the same time, there is
evidence that job enrichment may sometimes cause dissatisfaction among certain
employees (Locke, E. A., Sirota, D., & Wolfson, A. D., 1976). The reason may be
that employees who are given additional autonomy and responsibility may expect
greater levels of pay or other types of compensation, and if this expectation is not met
they may feel frustrated. One more thing to remember is that job enrichment is not
suitable for everyone (Cherrington, D. J., & Lynn, E. J., 1980).
Job Characteristics Model
The job characteristics model is one of the most influential attempts to design jobs
with increased motivational properties (Hackman, J. R., & Oldham, G. R., 1975). An
integrated view (Robertson and Smith 1985) suggests that the following motivating
characteristics are of prime importance in job design:
Autonomy, discretion, self-control and responsibility;
Skill variety;
Use of abilities
Feedback;
Belief that the task is significant.
Task significance
Task identity
Interest and challenge
According to the job characteristics model, the presence of these core job dimensions
leads employees to experience three psychological states: They view their work as
meaningful, they feel responsible for the outcomes, and they acquire
knowledge of results. These three psychological states in turn are related to
positive outcomes such as overall job satisfaction, internal motivation, higher
performance, lower absenteeism and turnover (Brass, D. J., 1985).
Empowerment
One of the contemporary approaches to motivating employees through job design is
empowerment (Conger, J. A., & Kanungo, R. N., 1988). The idea behind
empowerment is that employees have the ability to make decisions and perform their
jobs effectively if management removes certain barriers. Employees who feel
empowered believe that their work is meaningful. They tend to feel that they are
capable of performing their jobs effectively, have the ability to influence how the
company operates, and can perform their jobs in any way they see fit, without close
supervision and other interference. These liberties enable employees to feel powerful
(Spreitzer, G. M., 1995). In cases of very high levels of empowerment, employees
decide what tasks to perform and how to perform them, in a sense managing
themselves.
Empowerment of employees tends to be beneficial for organizations, because it is
related to outcomes such as employee innovativeness, managerial effectiveness,
employee commitment to the organization, customer satisfaction, job performance,
and behaviors that benefit the company and other employees (Ahearne, M., Mathieu,
J., & Rapp, A., 2005). At the same time, empowerment may not necessarily be
suitable for all employees. Moreover, the idea of empowerment is not always easy to
implement, because some managers may feel threatened when subordinates are
empowered (Ahearne, M., Mathieu, J., & Rapp, A., 2005).
Role of Workforce Diversity in Attempts to Improve performance
Having a diverse workforce and managing it effectively have the potential to bring
about a number of benefits to organizations.
High Qulaity Decision Making
In a diverse work team, people will have different opinions and perspectives. In these
teams, individuals are more likely to consider more alternatives and think outside the
box when making decisions. When thinking about a problem, team members may
identify novel solutions. Research shows that diverse teams tend to make higher
quality decisions (McLeod, P., Lobel, S., & Cox, T. H., 1996).
Better Understanding and Service of Customers
A company with a diverse workforce may create products or
services that appeal to a broader customer base. For example,
PepsiCo Inc. was able to increase the percentage of women and
ethnic minorities in many levels of the company, including
management. The company points out that in 2004, about 1% of the
company’s 8% revenue growth came from products that were
inspired by the diversity efforts, such as guacamole-flavored Doritos
chips and wasabi-flavored snacks (Hymowitz, C., 2005). A company
with a diverse workforce may understand the needs of particular
groups of customers better, and customers may feel more at ease
when they are dealing with a company that understands their needs
(Slater, S. F., Weigand, R. A., & Zwirlein, T. J., 2008).
More Satisfied Workforce
When employees feel that they are fairly treated, they tend to be
more satisfied. On the other hand, when employees perceive that
they are being discriminated against, they tend to be less attached
to the company, less satisfied with their jobs, and experience more
stress at work (Sanchez, J. I., & Brock, P., 1996). Organizations
where employees are satisfied often have lower turnover.
Higher Stock Prices
Companies that do a better job of managing a diverse workforce are
often rewarded in the stock market, indicating that investors use
this information to judge how well a company is being managed. For
example, companies that receive an award from the U.S.
Department of Labor for their diversity management programs show
increases in the stock price in the days following the announcement.
Conversely, companies that announce settlements for discrimination
lawsuits often show a decline in stock prices afterward (Wright, P.,
Ferris, S. P., Hiller, J. S., & Kroll, M., 1995).
Lower Litigation Expenses
Companies doing a particularly bad job in diversity management
face costly litigations. When an employee or a group of employees
feel that the company is violating EEOC laws, they may file a
complaint. Regardless of the outcome, these lawsuits are expensive
and the resulting poor publicity also has a cost to the company. For
example, in 1999, the Coca-Cola Company faced a race
discrimination lawsuit claiming that the company discriminated
against African Americans in promotions. The company settled for a
record $192.5 million (Lovel, J., 2003) As you can see, effective
management of diversity can lead to big cost savings by decreasing
the probability of facing costly and embarrassing lawsuits.
Higher Company Performance
As a result of all these potential benefits, companies that manage
diversity more effectively tend to outperform others. Research
shows that in companies pursuing a growth strategy, there was a
positive relationship between racial diversity of the company and
firm performance (Richard, O. C., 2000). Companies ranked in the
Diversity 50 list created by DiversityInc magazine performed better
than their counterparts (Slater, S. F., Weigand, R. A., & Zwirlein, T.
J., 2008). And, in a survey of 500 large companies, those with the
largest percentage of female executives performed better than
those with the smallest percentage of female executives (Weisul, K.,
2004).
Job Design and Workforce Diversity
What can organizations do to manage workforce diversity more effectively through
dob design? In the most successful companies, starting from top management and
including the lowest levels in the hierarchy, each person understands the importance
of respecting others. If this respect is not part of an organization’s culture, no amount
of diversity training, job desinging or other programs are likely to be effective.
Considersing these facts, HR manager can include following aspects when they
design or redisgn job. These aspects will improve workforce diversity in an
organization.
Tracking Diversity Metrics and Diversity-Related Goals
Job desing should make the managers accountable for diversity. People are more
likely to pay attention to aspects of performance that are measured. In successful
companies, diversity metrics are carefully tracked. For example, in PepsiCo, during
the tenure of former CEO Steve Reinemund, half of all new hires had to be either
women or minorities. Bonuses of managers partly depended on whether they had met
their diversity-related goals (Yang, J. L., 2006). When managers are evaluated and
rewarded based on how effective they are in diversity management, they are more
likely to show commitment to diversity that in turn affects the diversity climate in the
rest of the organization.
Explicit Rewards for Increasing Diversity and Diversity Training Programs
A study of over 700 companies found that programs with a higher
perceived success rate were those that occurred in companies
where top management believed in the importance of diversity,
where there were explicit rewards for increasing diversity of the
company, and where managers were required to attend the
diversity training programs (Rynes, S., & Rosen, B., 1995).
Review Recruitment Practices
Companies may want to increase diversity by targeting a pool that
is more diverse. There are many minority professional groups such
as the National Black MBA Association or the Chinese Software
Professionals Association. By building relations with these
occupational groups, organizations may attract a more diverse
group of candidates to choose from. The auditing company Ernst &
Young Global Ltd. increases diversity of job candidates by mentoring
undergraduate students (Nussenbaum, E., 2003). Companies may
also benefit from reviewing their employment advertising, selection
procedures, tests and interviewing process to ensure that diversity
is important at all levels of the company (Avery, D. R., 2003).
Conclusion
Early alternatives to job specialization include job rotation, job enlargement, and job
enrichment. Research shows that there are five job components that increase the
motivating potential of a job: skill variety, task identity, task significance, autonomy,
and feedback. Finally, empowerment is a contemporary way of motivating employees
through job design. These approaches increase worker motivation and have the
potential to increase performance for both individual and organization.
Organizations managing diverse workforce effectively benefit from diversity because
they achieve higher creativity, better customer service, higher job satisfaction, higher
stock prices, lower litigation expenses and higher company performances.
Management of diversity effectively promises a number of benefits for employees and
organizations.
Organizations can manage workfroce diversity more effectively through job design by
building a culture of respect, making managers accountable for diversity, creating
diversity-training programs, reviewing recruitment practices, and under some
conditions, utilizing affirmative action programs.