04. FIRM VALUE & EMPLOYEE ATTITUDE IN WORK PLACE

 

Attitudes in the Workplace

What is Attitude?

An attitude is a psychological state of mind that influences a person's thinking and behavior. In the workplace, employees can have either a positive or negative attitude towards their job duties, products or services, coworkers, management, or the organization as a whole.

Negative attitudes can lead to apathy towards daily tasks, making minor issues seem significant and causing work to be completed to a poor standard. On the other hand, employees with a positive attitude make workdays more enjoyable, complete tasks more efficiently, and handle challenges with a constructive mindset. For example, viewing a negative customer service interaction as an opportunity to turn a bad experience into a good one exemplifies a positive employee attitude.

How Attitude Affects Employee Outcomes

Generally, a positive attitude leads to positive behaviors, while a negative attitude results in negative behaviors. Employees who believe in the company's products are more likely to engage favorably with customers. Similarly, employees who trust each other and management tend to be more productive and have lower turnover rates.

However, when employees are regularly required to work long hours without additional compensation, negative attitudes can develop and spread throughout the department, leading to performance and effectiveness issues.

Evaluating Work Attitudes in the Workplace

Work attitudes can reveal who is likely to stay or leave, who will perform better, and who will be more engaged. Therefore, companies should track employee satisfaction and commitment levels. Addressing issues that cause dissatisfaction and disengagement is crucial.

Two systematic techniques to measure employee perceptions are attitude surveys and exit interviews. Companies like KFC, Long John Silver's, SAS Institute, and Google conduct periodic attitude surveys to track work attitudes. Keeping responses anonymous can yield more honest feedback, as employees are less likely to be candid if they fear their responses will be shared with their immediate management. The credibility of management is also critical to the success of these surveys.

Case Study: Improving Attitudes at ABC Corp using Herzberg’s Two-Factor Theory

Background: ABC Corp, a medium-sized enterprise, noticed a decline in employee morale and productivity. The management decided to address these issues by applying Herzberg’s Two-Factor Theory, which distinguishes between hygiene factors (which can cause dissatisfaction if missing) and motivators (which can enhance satisfaction and performance).

Implementation:

1. Identifying Hygiene Factors:

   • ABC Corp conducted surveys to identify hygiene factors causing dissatisfaction, such as poor working conditions, inadequate pay, and lack of job security.

   • Actions were taken to improve these aspects, including upgrading office facilities, revising pay structures, and ensuring job stability.

2. Enhancing Motivators:

   • The company introduced initiatives to enhance motivators, such as recognition programs, opportunities for career advancement, and providing meaningful work.

   • Employees were given more autonomy and responsibility, and efforts were made to acknowledge their contributions regularly.

Results:

The implementation of Herzberg’s Two-Factor Theory at ABC Corp led to significant improvements in employee attitudes and performance. According to an internal survey, 75% of employees reported an increase in job satisfaction, and 80% felt more motivated. The company's overall productivity increased by 15% over the year, demonstrating the effectiveness of addressing both hygiene factors and motivators.

Conclusion

Attitudes are a critical component of workplace dynamics. By understanding and managing employee attitudes, companies can create a more positive and productive work environment. The case study of ABC Corp illustrates how applying Herzberg’s Two-Factor Theory can effectively improve employee attitudes and organizational outcomes. Investing in the development and maintenance of positive attitudes not only benefits individual employees but also drives overall organizational success.

References:

• Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The Motivation to Work. John Wiley & Sons.

• Society for Human Resource Management (SHRM). (n.d.). Various articles on employee satisfaction and motivation.