CASE 6

Summary of case 6A:

·         A young man was found dead after having an epilepsy attack

·         The man was an intern at an investment back, and was said to work exceptionally long hours prior to his death

·         The bank has no way of monitoring working hours

·         Interns often work unreasonable working hours in competitive businesses to stand out and land a permanent position

·         It cannot be proved that fatigue lead to the man’s epileptic attack and premature death

Challenges:

·         Are companies to be responsible for staff hours?

·         Is it right that companies hire interns to work long hours, knowing that the same legislation does not apply to them?

·         Is it the company, the peer pressure, or the person’s own duty to monitor wellbeing?

Summary of Case 6B:

·         Wellness programs offered by companies are becoming more and more common

·         The results of the program ensuring better health and wellness are conflicted

·         Penalizing workers for unhealthy habits does not work, however motivating with carrots is more effective

·         Focus should be put on mental health as well as physical health

·         The ROI is long-term, wellness programs are not a quick fix, or an easy way to save money

Challenges:

·         Should a company invest in wellness programs to increase productivity and cut down sick-days?

·         How does a company know if is effective?

·         Is the cost of the program worth it?

·         ROI is long-term, however staff turnover is higher in todays, project-oriented employment culture

·         What kind of meters can be used for measuring wellbeing?

Key Concepts, Theory and Model

There are several national laws and guidelines for making sure workers safety and health. In the United States the Occupational Safety and Health Act of 1970 (OSHA) lays out the basic guidelines and laws at federal level. The safety at workplaces is monitored by The Occupational Safety and and Health Administration (L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p.57-574). In Finland health and safety is monitored by the The occupational safety and health authority. Their task is to enforce health and Safety laws, and conduct inspections. (Työsuojelu.fi)

Today, employees are responsible for any and all injuries, accidents and deaths at a place of work. Insurance is provided and mandatory for employees in Finland. In the US there is also a law for workers compensation, in case of an accident (L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p.568-569). Despite insurances and workers compensation laws, many employees face problems when they have an accident or injury and should be compensated. As Howard Ankin writes, “Employers and their insurance carriers have a vested interest in denying as many claims as possible to avoid having to pay large payouts”. Claims are often denied, due to reasons such as: the employee did not report the injury immediately, the injury was not witnessed, or there was a pre-existing condition, according to Ankin. (H. Ankin, 2017)

Some careers are known to be more hazardous than others. Construction sites are, places where accidents happen on a regular basis, no matter how much preventive action is taken. One issue with construction sites, is that the employees are often foreign, or the contractor is a foreign company, and may not place such strong value on ensuring health and safety laws or insurances. Salon Media recently puclished an article on safety at construction sites in New York. The article is referring to a report made by the Health and Safety Committee of New York, saying that especially non-union construction sites are increasing, and in consequence more Latino construction workers are at risk of injury. Non-union contractors do not place as much value on safety, and therefore, place workers at higher risks. While Latino workers only make up for 30 % percent of the construction workforce in New York, they account for 57 % of all fatalities due to falls at construction sites (M. Arria, 2017)

As shown in the case 6A, fatalities may also incur under uncertain conditions. A young man died due to an epilepsy attack. A tragedy that may happen on its own. But in this case, the man was an intern working for an investment bank in London, a field known for brutal intern working hours and pressure to surpass employer’s expectations.  The man had worked through the night on several occasions prior to his death. The company had no system in place to monitor employee work hours. In addition, in this field it is customary for interns to put in long hours in order to land a permanent position. It is part of the company culture. In these kinds of cases it is extremely difficult to determine whether the death was due to the inhumane working hours. In addition, if it could be established that the man did indeed die due to an epilepsy attack caused by exhaustion, is it the employers fault or is it the responsibility of the employee to make sure he or she gets enough sleep? As the employer doesn’t demand an employee to work through the night, he is not mandated to do so. Yet he or she knows, that if he or she doesn’t, someone else will take his or hers place. (E. Thomas, 2012)

Employers are not only responsible for accidents, but also for keeping employees safe from discrimination, violence, threats etc. at the workplace. In addition, employers can be found to have produced so called cumulative Trauma Disorders, such as repetitive stress injuries at factories or back pains from sitting on the job too much. Employers have a duty to alter physically strenuous work or repetitive movements in order to prohibit future damage. (L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p.581).

Many employers have introduced wellness programs, that prevent injuries and sick leaves by motivating workers to stay fit and healthy. The benefits of such programs are under dispute, but many feel it is not only beneficial in the long term, but also creates a strong company culture, making the employees feel well cared for. Preventive screening and testing, in addition to motivators for physical activity may help to reduce costs of health care when it comes to treating already existing illnesses, injuries or health problems. Many believe, it is easier and more cost effective to prevent, than to treat a problem. (L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p.587-588).

Literature:
 

E. Thomas, 2012, “ 'Exhausted' Merrill Lynch intern died from epileptic fit in shower after he 'pulled three all-nighters at bank where employees compete to work the longest hours”, Daily Mail, http://www.dailymail.co.uk/news/article-2511911/Moritz-Erhardt-exhausted-Merrill-Lynch-intern-died-epileptic-fit.html#ixzz4RTj2xoP1 (22.2.17)

H. Ankin, 2017, “Common causes of worker’s compensation Denials”, JD Supra Business Advisor, http://www.jdsupra.com/legalnews/common-causes-of-workers-compensation-96346/ (22.2.17)

L.R Gomez-Mejia, D.B Balkin, R.L Cardy, 2012, “Managing Human Resources”, 7^th Edition, chapter 16. Pearson Education Inc. New Jersey

M. Arria, 2017, “The deadly reality of construction work: Minorities suffer most from workplace negligence”, Salon, http://www.salon.com/2017/02/20/the-deadly-reality-of-construction-work-minorities-suffer-most-from-workplace-negligence_partner/ (22.2.17)

Työsuojelu.fi, http://www.tyosuojelu.fi/web/en/about-us/organisation, (22.2.17)

Case 5

Summary of case:

• Career analyst, Dan Pink speaks about traditional motivators such as salary and bonuses, as being outdated ways to motivate workers
• There is a mismatch between what science knows and business does when it comes to rewards
• Traditional carrots, in terms of bonuses, are researched to lead to poorer results instead of better, when it comes to 21^st century jobs that require innovation and creativity
• The new motivators are instead: Autonomy, Mastery and Purpose.

Challenges

• How to motivate the workforce and keep above-average workers in the business?
• Traditional business is slow to change, for many, bonuses are the only considered incentive
• Can businesses and especially managers change enough to ensure autonomy, mastery and purpose? 

Key Concepts, Theory and Model

There are many ways to motivate an employee. Traditionally, salary and other monetary incentives have been seen as the main motivators. But today, an increasing amount of (especially) young workers, are craving other motivators and benefits.

There are several different components of compensation. There is the base compensation (monthly or hourly salary for example), pay incentives (such as performance rewards) and benefits (on-site gym, insurance, or lunch restaurant, for example). The compensation system can be a mix of the three. (L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p.340-341)

The base compensation, i.e.. salary, can be based on internal company equity (where a certain job, is always paid the same, regardless of who does the job), or it can be based on external equity, whereas the compensation is based on medium pay for all persons in a country working with a similar job title. A salary can be fixed or it can vary according to performance. (L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p.341)

Pay incentives, are often based on performance. If a person, team, department or company performs well, an award is given. Often, this is some sort of a bonus on top of the base salary. It is believed, that bonuses will motivate workers to perform better. (L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p.386)

The case presented above, is of another opinion. Dan Pink is claiming the contrary, that bonuses and pay incentives in most cases reduce productivity and lower results. He claims, that the pay incentives used to be a good way of motivating workers, when the job was very monotone. Today, most people have jobs that demand some sort of creativity and innovative thinking. Studies show, that pay incentives hinder this kind of brainwork and actually lead to poorer outcomes. Dan Pink, says that jobs, that require thinking outside the box, cannot be performed if you have narrowed your vision, into only achieving the goal. (D. Pink, 2009).

Lastly, we come to the benefits. Benefits can vary from company to company. Some offer a wide range of benefits, while others do not offer any. Benefits are things that the company provides of top of the salary and pay incentives. These can include vacation days, on-site childcare, gym-membership etc. More and more companies, are starting to reward their employees with benefits. Dan Pink, also speaks about this development. He speaks of workers being motivated by autonomy, for example. Many people value being able to work when they want to or where they want to. The benefit of having flexible working hours and the permission to work outside of the office is very valuable for some. (D. Pink, 2009) Benefits can also include time spent on “own projects” such as Google allowing workers 20 % of working hours to be put towards creating new ideas and developing them. (J. D’Onfro, 2015)

The future workforce no longer stay motivated by salary and traditional incentives, but demand more. The so called Millenials, are known for their lack of motivation to stay in one company, working to achieve a successful career in a nine to five job, according to author and Public Speaker, Simon Sinek. (S. Sinek, 2016) To the horror of many, these young people are the future of our businesses. That means businesses need to change, in order to accommodate these new needs. Business News Daily lists 15 benefits, that keep employers happy and motivated. These include, among others, no official working hours, family benefits, physical activities, continued education and health care on site. (S. Caramela, 2016) Accommodating these new needs may seem daunting to some, but as Dan Pink says, it may well lead to better performance and a more successful business. 

Literature:

D. Pink, 2009, “The Puzzle of Motivation”, TedTalk, https://www.ted.com/talks/dan_pink_on_motivation?language=en#t-1099099 (6.2.17)

J. D’Onfro, 2015, “The truth about Google’s famous ‘20% time’ policy”, Business Insider, http://www.businessinsider.com/google-20-percent-time-policy-2015-4?r=US&IR=T&IR=T, (6.2.17)

L.R Gomez-Mejia, D.B Balkin, R.L Cardy, 2012, “Managing Human Resources”, 7^th Edition, chapter 10 and 11. Pearson Education Inc. New Jersey

S. Carameka, 2016, “15 Cool Job Perks That Keep Employees Happy”, Business News Daily, http://www.businessnewsdaily.com/5134-cool-job-benefits.html (6.2.17)

S. Sinek, 2016, “Millennials in the Workplace”, Youtube,  https://www.youtube.com/watch?v=hER0Qp6QJNU (6.2.17)

CASE 4

Summary of case:

·         A newly hired employee was assigned a new supervisor

·         The employee was given tasks, that he thought were not part of his job description, yet he completed them anyway

·         The employee thought he was meeting expectations

·         At the six-month performance appraisal, it turned out that employee and manager had a very different view of the situation, leading to the employee considering leaving the company

·         HR stepped in and together with the two set up a plan including performance goals

·         With clear goals to achieve, the employee knew what was needed of him, and even started exceeding employer expectations

Challenges:

·         Unclear job description leads to confusion

·         Appraisal should not take place on six-month intervals, but constant feedback is needed

·         Aligning employee performance with organizational goals is important for motivation

Key Concepts, Theory and Model

The case clearly shows an appraisal system gone wrong, but that got turned around by the Human Resources Department to benefit all. It is critical to have clear job descriptions to be able to have clear and mutually beneficial job appraisal. If the job description is clear, it is easier to identify performance dimensions to measure for the appraisal.

There are many ways to measure job performance, some better than others. In the book “Managing Human Resources” the following measurement models are presented: 1. Relative and absolute judgement, 2. Trait, behavioral and outcome data. These systems all have their benefits and downfalls.

Relative measurement, means measuring performance in relation to other employees, whereas absolute judgement is based on performance standards. Traits measure personal characteristics of an employee (energy, decisiveness for example). Behavioral measurements focus on behavior, as the name entails. Instead of characteristics, certain behaviors are measured (for example the ability to communicate in a team). Lastly, the outcome data tool, which mainly focuses on shared set goals, and to which extent they have been met. (L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p.254-260).

Although performance appraisal meetings often are held annually, or on a six-month basis, it is important to not limit feedback to these situations. Continuous feedback, goal setting and development is crucial for keeping workers motivated, on target and performing well. In the case, the worker was not given any feedback during the evaluation period, and was surprised by the outcome. Once the feedback was given on a continuingly the relationship between manager and worker also improved. But giving feedback can be tricky. Once clear goals and expectations have been set, it is easy to give feedback during the appraisal. The Entrepreneur website gives five tips on how to give feedback continuously. 1. Establish a culture of trust. Make the employee feel safe, don’t give feedback to be mean. 2. Give at least as much positive feedback as negative. 3. Be specific. 4. Give feedback immediately 5. Be encouraging, even if someone has made a big mistake. Ask for their perspective, and explain what you expect in the future. ( S. Halford)

Every organization has (or should have) a mission, vision and strategy. For performance appraisal, the vision and strategy are great starting points. By relying on the vision and strategy, clear goals can be laid out for the departments, teams and even individual workers. Say for example that the vision of a company is to become the largest shoe store in Finland. To become the largest shoe story, the company’s strategy includes selling shoes worth 1 million euros. From there we can create a KPI (Key Performance Indicator). In this case, it could be the sale of 1 million worth of shoes. Let’s say that the company has 5 stores in Finland, for each store we can then divide the sales target into a sales target of 200 000 euros per store. In each store, there are ten employees. Each employee then has to annually sell shoes worth 20 000 euros. Divided quarterly each worker’s sales target is 5000 euros. Managing that goal is easy both for the employee and supervisor of the shoe store. The KPI needs to be clearly measurable and represent the vision or strategy of the company. Setting clear KPI’s will feed into the vision of the company. (Mindtools).

There are several different kinds of tools, that can be used for implementing the vision and strategy, such as the Balanced Scorecard and OKR. The Balanced scorecard includes strategic non-financial measures to give a view of the company’s performance (Balanced Scorecard Institute). 

The OKR (Objectives and Key Results), is a management methodology, that helps workers and managers set clear goals for the work. This helps in performance appraisal. Each goal should be clearly stated, measurable and have a deadline (Better Works).

Setting clear goals and evaluations, will according to studies, keep the workers more motivated an performing higher. According to Prof. Edwin Locke and Prof. Gary Latham, and their Goal Setting theory, people who have difficult but attainable goals perform better and lack of accomplishments leads to job dissatisfaction. (D. Art)

Setting clear goals and giving feedback is not only beneficial for the company and its strategy. It also helps the manager give appropriate feedback and appraisal. And as an added bonus, the employee is more motivated, performs better and feels accomplished.

Literature:

Balanced Scorecard Institute, “Balanced Scorecard Basics", https://www.balancedscorecard.org/Resources/About-the-Balanced-Scorecard (3.2.17)

Better Works, “What are OKRs?”, https://www.betterworks.com/okr/ (3.2.17)

D.Art, “A Theory of Goal Setting By Locke & Latham”, Chron, http://smallbusiness.chron.com/theory-goal-setting-locke-latham-1879.html, (3.2.17)

L.R Gomez-Mejia, D.B Balkin, R.L Cardy, 2012, “Managing Human Resources”, 7^th Edition, chapter 7. Pearson Education Inc. New Jersey

Mindtools, “Performance Management and KPI’s”, MindTools, https://www.mindtools.com/pages/article/newTMM_87.htm (3.2.17)

S. Halford, “Five Steps For Giving Productive Feedback”, Entrepreneur, https://www.entrepreneur.com/article/219437 (3.2.17)