Employee Engagement in Organisations: The first days for ambitious HR functions ‘Think HR. Think Human Capital.’ Tour 2013 Employee Engagement Conference Symposium Events London UK April 2013 Nicholas J Higgins, DrHCMI MSc Fin (LBS) MBA (OBS) MCMI CEO, VaLUENTiS Ltd & Dean, International School of Human Capital Management (‘ISHCM’)
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Employee Engagement in Organisations:
The first days for ambitious HR functions
‘Think HR. Think Human
Capital.’ Tour 2013
Employee Engagement Conference Symposium Events
London UK April 2013
Nicholas J Higgins, DrHCMI MSc Fin (LBS) MBA (OBS) MCMI
CEO, VaLUENTiS Ltd & Dean, International School of Human Capital Management (‘ISHCM’)
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1. Which famous experiments took place at Western Electric Co in the 20th
Century…?
Hawthorne Experiments (1924-1933) Illumination Studies (1924-27) • Inter-relationship of social and physical factors in
determining productivity • Unintended consequences on artefacts of experimental
setting
Relay Assembly Test Room (1927-32) • Impact of supervision on worker behaviour • Employee participation • Development of group cohesiveness • Matching worker expectations and job characteristics • Worker sentiments and values • Spill-over of non-work experiences into work life • Informal leadership • Worker attitudes and productivity • Multidimensional view of work motivation
Bank Wiring Observation Room (1931-32) • Informal system • Group social strata • Anti-management group norms • Coercive impact of group norms • Physical proximity and attitudes
Interview Programme (1928-30) • Employee feedback • Non-directive counselling • Status distinction and interpersonal perception • Supervisor training
Second relay assembly (1928) • Different wage incentives cannot account
for all of test room productivity increases
MICA Splitting Test Room (1929) • Autonomous work groups • Limits to wage incentive
Source: Adapted from Shedding Light on the Hawthorne Studies, Sonnenfeld J.A. 1985 Photographs: Harvard Baker Library
2. Which US company is most associated with employee surveys and causal studies linking to performance …?
A look back at The original Sears E-C-P Chain… (an early forerunner of ‘employee engagement’ with causal performance link)
Attitude
about the
job
Employee
Behavior
Customer
Impression
Customer
recommendations Service
Helpfulness
The Employee-Customer-Profit chain at Sears By Anthony J. Rucci , Stephen P. Kirn and Richard T. Quinn Harvard Business Review Jan-Feb 1998
Attitude
about the
company
Merchandise
Value
Employee
retention Customer
retention
Return on assets
Operating margin
Revenue growth
5 unit increase in employee
attitude
13 unit increase in customer impression
0.5% increase in revenue growth
A compelling place to work A compelling place to shop A compelling
place to invest
3. Which author, with an article published in 1990, is attributed as being
the first to use the term ‘employee engagement’…?
11
Psychological Conditions of Personal Engagement and Disengagement at Work
William A. Kahn
Academy of Management Journal 1990
“Personal Engagement is the simultaneous employment and expression of a person’s ‘preferred self’ in task behaviors that promote connections to work and to others, personal presence (physical, cognitive and emotional), and active, full role performance.”
Employee engagement as a sum of constant work ‘forces’ (VaLUENTIS EESoF model) illustrative vectors
interpersonal conflict
incentive misalignment
perceived reward inequity short-staffed
uncaring new boss
poorly communicated reorganisation
enlarged role
planned training
cancelled
Well-received performance appraisal hit personal
targets/ objectives
hit team targets/ objectives
salary increase
enrolled on MD programme
“A further, more up to date interpretation…”
4. What is ‘acknowledged’ as the single biggest factor in an individual’s
engagement at work…?
Illustrating the management influence using VaLUENTiS 5D Employee Engagement Framework
A manager has influence in many areas of engagement, some more than others…
The concept of Employee Engagement: A synthesis of antecedent theories and empirical evidence with human capital
management practice related to organisation performance – 100 years in the making
Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003
Wider Group
Immediate Team
Organisation Individual
•Group theory
•Trust theory
•Teams theory
•Conflict theory
•Decision-making theory
•Motivation theory
•Goal setting and task theory
•Equity (justice) theory
•Trait theory
•Expectancy theory
•Commitment theory
•Needs theory
•Social cognitive/ self efficacy theory
•Cognitive dissonance
•Wellbeing/Burnout
•Job satisfaction
•Organisation Citizenship Behaviour
•Learning theory
•Behaviourism
•Emotional Intelligence
•Psychological contract
•Leadership theory
•Organisational ‘fit’ theory
•Other I/O psychology contributions
•Organisation performance & measurement*
Human Capital Management practice/systems:
•Training & Development
•Performance management
•Reward & recognition
•Resourcing & selection
•Organisation communication
•Talent management
•Leadership
•Organisation culture
•Employer brand
•Human capital retention
•Organisation design
•Workforce diversity
•High performance work systems
•Fayol - Principles of management
•Taylor - Scientific management
•McGregor Theory X/Y
•Mayo/Hawthorne studies
•Tavistock – Socio-technical systems
•Lewin (MIT) - group dynamics/behaviour
•Munsterberg - Industrial psychology
•Follett - Management relations/integration
•Hertzberg – Two factor theory
•Drucker – Practice of management
•Kahn – Personal engagement
•Likert – Management system/measurement scale
VaLUENTiS 5D Employee Engagement: Core empirical theories that combine to form the root structure of the VaLUENTiS model
Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003
Wider Group
Immediate Team
Organisation Individual
•Motivation theory
•Goal setting and task theory
•Equity (justice) theory
•Group theory
•Trust theory
•Trait theory
•Fayol - Principles of management
•Taylor - Scientific management
•Expectancy theory
•Commitment theory
•Teams theory
•Conflict theory
•Needs theory
•Organisation performance & measurement*
•Social cognitive/ self efficacy theory
Human Capital Management practice/systems:
•Cognitive dissonance
•Wellbeing/Burnout
•Job satisfaction
•Organisation Citizenship Behaviour
•Learning theory
•McGregor Theory X/Y
•Behaviourism
•Training & Development
•Performance management
•Reward & recognition
•Resourcing & selection
•Organisation communication
•Talent management
•Leadership
•Organisation culture
•Employer brand
•Human capital retention
•Organisation design
•Decision-making theory
•Emotional Intelligence
•Workforce diversity
•Mayo/Hawthorne studies
•Tavistock – Socio-technical systems
•Lewin (MIT) - group dynamics/behaviour
•Psychological contract
•Leadership theory
•Organisational ‘fit’ theory
•Other I/O psychology contributions
•High performance work systems
•Munsterberg - Industrial psychology
•Follett - Management relations/integration
•Hertzberg – Two factor theory
•Drucker – Practice of management
•Kahn – Personal engagement
•Likert – Management system/measurement scale
“But all the others have a part to play…”
5. What is the connection between job satisfaction and job performance…?
6. Complete this ‘well-known phrase’: “If employee engagement was the
answer, …………………………......?”
19
Absenteeism, turnover, ill-discipline, manager resistance, communication and/or trust issues etc are all, to a great degree, manifestations of poor employee engagement in some form.
“Many case studies and indeed academic comment, however, seem to ignore this fact. Thus, we’re seemingly praising ourselves for putting a fire out – the very one we started as an organisation! What happened to the ‘Why’ in the first instance?
As an industry practitioner question - What’s going on here?”
Observation 101
20
Part II
The first 100 days…
Back to the ‘Six Pillars’…
EE PLAYBOOK
1. Grounded understanding of Employee Engagement
2. Working definition of Employee Engagement
3. Measurement wisdom
4. Actioning infrastructure
5. Dynamic EE-Performance ‘playbook’
DELETE 6. Competent leadership/management
Organisations and employee engagement:
The ‘4-ball’ practice model
Play down
‘We don’t...’
Play act
‘It’s all about PR…’
Play safe
‘At least we audit/ benchmark...’
Play make
‘We do it…’
The four progressive states of employee engagement
embeddedness in organisations
Little. Limited.
Mostly ephemeral in nature.
Exists in pockets with variation in line management.
Good working knowledge embedded across
organisation.
No definition in use. Most likely borrowed
without any real ownership, or ‘false’ ownership.
Maybe borrowed with internalisation or adapted after some organisational
This is an example where front-line client projects meet management learning. VaLUENTiS has customised Harvard/ECCH case studies by adding employee engagement profiles along with human capital data and analytics to create a far more enriched and practical learning experience for managers/practitioners. It’s also unique and cheap to deliver (and also effectively on-demand).
‘Game management’…
Mo
del
s St
rate
gie
s Im
ple
men
tati
on
Le
arn
ing
Contents
1. Engagement strategies
2. Engagement operating ‘system’ models and analytics templates
3. Question-statement selection and construct design
4. Measurement index construction, maintenance and reporting
5. Engagement Driver Factor (EDF) analysis
6. Engagement ‘forcefield’ analysis
7. EE project management methodology and flowcharts
8. Engagement ‘issue work-through’ tools
9. Management learning programme design and evaluative criteria