Strategies for Job Satisfaction

Strategies for Job Satisfaction Introduction Job satisfaction is one of most important fields of study in the subject of human resource management. This important role of job satisfaction function leads the way in assuring high level of job satisfaction among the employees. Job satisfaction function of any HR vertical of an organization is primarily responsible for productivity of employees and the employee turnover. Since these two aspects can make or break the organizations performance in all areas, it requires attention from top management. (Lovelace Rosen, 2006) Job satisfaction function generally is part of the HR vertical with a clear mandate of motivating employee and continuously striving for higher employee job satisfaction through introduction of new policies and frameworks. The topic forms an integral part of organizational effectiveness and that has instigated me to choose this topic of job satisfaction. I shall try to study the existing literature on job satisfaction and will choose multinational companies to stud y their varied job satisfaction strategies and make analysis. (Parkes et al, 2001) Job satisfaction function is a vast topic and cannot be completely covered in this dissertation. Various researchers have already published their research articles on this subject. I shall be developing on it through understanding the different strategies used by MNCs in todays business environment for maintaining better levels of job satisfaction. Job satisfaction as stated earlier is a complex topic and hence I will try to break it down to simpler and more realistic frameworks to understand the thought process of an organization to ensuring better job satisfaction amongst its employees. (Gruneberg, 2009) According to Wood (2003), job satisfaction is the condition of contentment with ones work and its environment, denoting a positive attitude. Locke (2006) stated that, job satisfaction could be viewed as a pleasurable or positive emotional state resulting from the appraisal of ones job or job experiences. In other words, it can also be stated that, job satisfaction was simply a function of the degree to which a job provided the worker with positively values outcomes. Wanous (2000) said that, job satisfaction was a match between a persons need and the reinforcement received from work performed in an organization. The HR vertical of any organization shall try to achieve higher levels of job satisfaction through various techniques like awards program, job rotation, internal promotion scheme, family tours and training processes. (Rounds et al, 2007) There is no destination to achieving job satisfaction but the journey is perpetual in nature. Continuous improvement is the name of the game in achieving relatively good job satisfaction amongst the employees. The measure of job satisfaction can only be achieved through comparison in similar industries and through the employee turnover and productivity data. (Jackson et al., 2001) Job satisfaction is one of the most widely discussed and enthusiastically studied constructs. However, job satisfaction is among the most difficult constructs to define. A review of literature shows that constituted definitions of the construct vary from one researcher to the next. Wood (2003) describes the job satisfaction as the condition of contentment with ones work and its in my mind, denoting a positive attitude (p.8.). Locke (2006) stated that job satisfaction could be viewed as a pleasurable or positive emotional state resulting from the appraisal of ones job or job experiences. (p.1300) There are several reasons for studying job satisfaction. Organizations major job satisfaction primarily because of its presumed direct relationship to the short-term goals of cost reduction through increased individual productivity and reduced absences, errors, and turnover. (Cranny et al, 2002). Levels of job dissatisfaction have been found to be related to job turnover, absences, and tardiness. Turnover rates have been the most consistent major associated with job satisfaction. The potential negative consequences of employee turnover in terms of the impact of organizations. Negative effects of job turnover can include: increased costs to recruit, select and train new employer; demoralization of remaining employees; decreased social relationships among employees; negative public relations; disruption of a hi-fi and two-day activities; and decreased organizational possibilities to pursue growth strategies. In fact, several researchers reported a significant relationship between absenteeism and job satisfaction. According to Lawler (2007), the research evidence clearly shows that employees decisions about whether they will go to work on any given day and whether they will quit as affected by their feelings of job satisfaction. All the literature reviews on the subject have reached the same conclusion. The fact that present satisfaction influences future absenteeism and turnover clearly indicates that the commercial direction is from satisfaction to behavior. The literature also reveals that there is a correlation between job satisfaction and variables such as achievement, recognition, the word itself, responsibility, advancement, policy and administration, supervision, salary, interpersonal relations, working conditions, age, Tenure, educational level, job activities, and gender. The Purpose of the Study The purpose to choose this topic is to analyze the importance of job satisfaction in Multi National Companies (MNCs). The reason to go for MNCs is the increase in the shift over of the employees for future growth. The shifting, thus, includes the satisfaction in the given job role. Through my research, I will try to analyze the causes and effect relationship between the employee and the factors behind job satisfaction in a given MNC. Aim of the Study The main aim of the study is to investigate the remains leading to negative and positive job satisfaction in a MNC. The Objectives of the Study The key objectives of the chosen topic are: Estimating the causes of employee attitudes. Adjudging the results of positive or negative job satisfaction Measuring the employee attitude To assess facet-specific levels of job satisfaction To measure general job satisfaction, Literature Review There are several reasons for studying job satisfaction. Organizations measure job satisfaction primarily because of its presumed direct relationship to the short-term goals of cost reduction through increased individual productivity and reduced absenteeism, errors, and dissatisfaction has been found to be related to job turnover, absenteeism and tardiness. (Glisson Durick, 2008) Turnover rates have been the most constraints measure associated with job satisfaction (Atchison Lofferts, 2002; Brayfield Crockett, 2005, Dawis Lofquist, 2001). Mowday (2004) recapitulate the probable pessimistic significance of employee turnover in terms of the impact on organizations. There are various impacts of pessimism in job satisfaction on the turnover of the company such as: Increase in the recruitment cost. Recruiting new employees and then training them as well. It can lead to reduced social relations ships among employees. No or only few public relations. Reduction in companys prospects which can hamper the growth. According to Lawler (2005), the research evidence clearly shows that employees decisions about whether they will get to work on any given day and whether they will quit are effected by their feelings of job satisfaction. The fact that present satisfaction influences future absenteeism and turnover clearly indicates the causal direction is from satisfaction to behavior. There is a correlation between job satisfaction and variables such as achievement, recognition, the work itself, responsibility, advancement, policy and administration, working conditions, supervision, job activities and gender. Research Methodology Saunders et al (2005) Research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The research to be followed is a step-by-step process. This makes the entire research process systematic. Only primary research shall be used to draw inferences. (Ryan, 2009) The sources used shall be of international repute and will be trustworthy. The main source will be case study and also some books, journals, articles and publications including Internet sources. Chapter-2: Literature review An Overview Job satisfaction in considered to ones sensation or circumstances of intelligence regarding environment of their work. Job can be prejudiced by diversity of features like quality of ones relationship with their supervisor, quality of physical environment in which they work, degree of fulfillment in their work, etc. Positive attitude towards job are equivalent to job satisfaction where as negative attitude towards job has been defined variously from time to time. (Cherrington et al, 2009) In short job satisfaction is a persons attitude towards job. Job satisfaction is an attitude which results from balancing summation of many specific likes and dislikes experienced in connection with the job- their evaluation may rest largely upon ones success or failure in the achievement of personal objective and upon perceived combination of the job and combination towards these ends. According to pestonejee, Job satisfaction can be taken as a summation of employees feelings in four important areas. These are: Job-nature of work (dull, dangerous, interesting), hours of work, fellow workers, opportunities on the job for encouragement and progression (prospects), eventually system, attention in work, substantial background, and machines and apparatus. Management- managerial behavior, contribution, rewards and sentence, congratulate and responsibility, leaves strategy and preference. Social relations- associates and acquaintances, neighbors, approach towards populace in society, contribution in social activity scalability and background barricade. Personal adjustment-health and emotionality. Job satisfaction is an indicator of employee productivity and employee behavior at work. This may include inter employee relations, pro-activeness of employee, employee absenteeism no. of feedbacks from employees. These all factors are a direct measure of employee satisfaction of the job. The direct correlation has been established by earlier researchers and more so there is logical evidence to it in any business or industry. (Adams, 2003) The higher levels of job satisfaction is evident in an organization through lower absenteeism rates, low employee turnover, high employee productivity , proactively level of employees, labor unrest issues and participation in managerial decisions. (Saks Ashforth, 2007) Obviously, every organization desires for higher levels of employee job satisfaction; however it is a long drawn process with continuous improvement and direct focus from the senior leadership team of the organization. Job satisfaction cannot be used interchangeably with organizational morale; which the possessions of feeling have being accepted by and belonging to a group of employees through adherence to common goals and confidence in desirability of these goals. (Bedeian et al, 2002) Morale is the by-product of the group, while job satisfaction is more an individual state of mind. Definitions of job satisfaction Different authors give various definitions of job satisfaction. Some of them are taken from the book of D.M. Pestonjee Motivation and Job Satisfaction which are given below: As per Weiss, Job satisfaction is defined as a pleasurable, emotional, state resulting from appraisal of ones job. An effective reaction to ones job. For Blum and Naylor, Job satisfaction is general attitude, which is the result of many specific attitudes in three areas namely: Precise occupation features. Personal distinctiveness Group association exterior from the work According to Glimmer, Job satisfaction is defined, as it is result of various attitudes the person hold towards the job, towards the related factors and towards the life in general. Job satisfaction is defined as any contribution, psychological, physical, and environmental circumstances that cause a person truthfully say, I am satisfied with my job. Mr. Smith stated, Job satisfaction is defined, as employees judgment of how well his job on a whole is satisfying his various needs According to Locke, Job satisfaction is defined as a pleasurable or positive state of mind resulting from appraisal of ones job or job experiences. History of job satisfaction The term job satisfaction was brought to lime light by hoppock (2005). He revived 35 studies on job satisfaction conducted prior to 2003 and observes that Job satisfaction is combination of psychological, physiological and environmental circumstances. That causes a person to say. I m satisfied with my job. Such a description indicate the variety of variables that influence the satisfaction of the individual but tell us nothing about the nature of Job satisfaction. Job satisfaction has been most aptly defined by Pestonjee (2003) as a job, management, personal adjustment social requirement. Morse (2003) considers Job satisfaction as dependent upon job content, identification with the co., financial job status priding group cohesiveness. One of the biggest preludes to the study of job satisfaction was the Hawthorne study. These studies (2004-2003), primarily credited to Elton Mayo of the Harvard Business School, sought to find the effects of various conditions (most notably illumination) on workers productivity. Hawthorne Studies It is considered to be one of the best researches done on the job satisfaction. It was conducted by Mayo, Roethlisberger Dickson during the late 2000s and early 2000s at the Western Electric Company. Western Electric Management enlisted the help of Harvard business School professor is Elton Mayo, F.J Roethlisberger, and William Dickson, to help increase the output of workers assembling telephone release. The research started out as an investigation of the effects of physical working conditions on worker productivity, but ended up very differently. Mayo, Roethlisberger Dickson originally begin experimenting with the amount of lighting, expecting that productivity would rise as elimination increased to an optimum level. However, the hypothesis that productivity would write just as elimination increased to an optimum level was strongly disapproved why, after several experiments in large departments of the plant, it was discovered that changes in productivity occurred quite independently of B level of elimination. Mayo, Roethlisberger Dickson then started experimenting by introducing rest pauses of different lengths and different frequencies during the work day, supplying coffee breaks at various points in the day, and shortening the length of the world today at the work week. The results of the second part of the experiment were more amazing there was an upward trend in output, regardless of the introduction or withdrawal of rest periods, lunches, coffee breaks, shorter workdays, or shorten workweeks. Furthermore, avoid the experiment ended after a year, and the original conditions of work were restored in all previous privileges withdrawn, the daily and weekly output rose to our point higher than at any other time. (Mayo, 2003, pp.62-63) In addition, morale among the relay assembly room workers improved dramatically. There was a sharp increase in the amount of socializing among workers after ours. Moreover, absenteeism decreased 80% (Roethlisberger Dickson 2009). According to Dawis Lofquist (2001), the Hawthorne studies have been credited with limiting research into the causes of job satisfaction and dissatisfaction. These researches eventually illustrated that original alterations in job situations provisionally enhanced efficiency (called the Hawthorne Effect). Maslows hierarchy of needs Abraham Maslow, in a classic paper published in 2003, outlined the elements of an overall theory of human motivation. Maslow viewed human motivation in terms of a hierarchy of five needs: physiology needs; safety needs; belonging there is an alarm needs; S team needs; and, the need for self actualization (Maslow, 2000). According to Maslow, 2000, in the majors are motivated to fulfill whichever need was pre-potency, almost fourfold, for them at a given time. The pre-potency of the meat depended on the given current situation and recent experiences. Starting with physical needs, which were most basic, each member must be at least partially dissatisfied before the Indian visual experience to the desire to satisfy a need at the next higher level. Maslows need hierarchy is illustrated in figure 2.1. According to Sergiovanni (2004) and Davis and Newstrom (2009), physiological needs more likely to serve as motivators among workers in todays society, as most jobs issue or the fulfillment of physiological needs, such as food and shelter. However, higher level needs (belonging is and loved needs, S team needs, and the need for self actualization) may influence levels of employee motivation (Davis Newstrom, 2009). Figure 2.1: Maslows need hierarchy Levels of job satisfaction Level can be defined as an extent, major, or degree of achievement. Job satisfaction is a difficult construct a defined. Job satisfaction can be defined generally as the degree to which individuals feel positively or negatively about their jobs. Importance of job satisfaction Job satisfaction is an important indicator of how employees feel about their job and a predictor of work behavior such as organizational, citizenship, Absenteeism, Turnover. Job satisfaction can partially mediate the relationship of personality variables and deviant work behavior. Common research finding is that job satisfaction is correlated with life style. This correlation is reciprocal meaning the people who are satisfied with the life tends to be satisfied with their jobs and the people who are satisfied their jobs tends to satisfied with their life. This is vital piece of information that is job satisfaction and job performance is directly related to one another. Thus it can be said that, A happy worker is a productive worker. Job Satisfaction: Importance to worker organization Job contentment and work-related achievement are main factors in individual satisfaction, self-worth, sense of worth, and self-development. (Bruce Blackburn, 2002) To the employee, job satisfaction brings a pleasant expressive state that can often lead to an affirmative work attitude. (Schneider, 2001) A pleased worker is more likely to be imaginative, flexible, innovative, and dependable. For the organization, job satisfaction of its workers means a work force that is enthused and dedicated to high quality performance. (Carrell Elbert, 2004) Augmented output- the quantity and quality of output per hour worked seem to be a by creation of enhanced class of working life. It is vital to note that the literature on the association between job happiness and output is neither definite nor consistent. (Glisson Durick, 2008) On the other hand, research dating back to Herzbergs time (2007) has shown at least low association between high confidence and high efficiency and it does seem logical that more satisfied workers will be likely to add more worth to an organization. Discontented employees, who are stimulated by fear of loss of job, will not give 100 percent of their effort for a very long time. Although apprehension is a powerful motivator, it is also a brief one, and also as soon as the threat is lifted performance will decline. Employment satisfaction profits the organization and includes reduction in complaints and grievances, employee absenteeism, work force turnover, and termination; as well as improved regularity and worker morale. (Ryan, 2009) Job liking is also linked with an improved work force and has been found to be a good pointer of prolonged existence. Even though only slight connection has been found amongst job satisfaction and productivity, Brown (2006) writes that few employers have discovered that satisfying or delighting work force is one of the most important prerequisite to satisfying or delighting customers, thus ensuring the growth of bottom line of the organization. Job Satisfaction: Employees Responsibility If job contentment is a worker advantage, certainly the employee must be talented to add to his or her own contentment and comfort on the job. (Joplin et al, 2007) The following suggestions can assist an employee to find his or her own satisfaction at job: search for opportunities to display skills and aptitude. This repeatedly leads to even more demanding work and higher responsibilities, with assistant increases in salary and other recognition and rewards. Build up extraordinary communiquà © skills. Companys value and rewards excellent reading, listening, writing and speaking skills. Be acquainted with more. Obtain new work related information and skill that helps you to complete job more economically and effectively. This will take off monotony and often gets one noticed. Reveal creativity and initiative. Merits like these are respected by most companies and often come with in recognition as well as improved responsibilities and promotions. Initiate teamwork and man management skills. A big part of job related achievement is the aptitude to work well with others to get the job done. (Lyons et al,2003) Accept the diversity in people. Accept people with their differences and their imperfections and learn how to give and receive criticism constructively. (Peterson Gonzalez, 2009) See the value in your work. Appreciating the significance of what one does can lead to satisfaction with the work itself. This help to give meaning to ones existence, thus playing a vital role in job satisfaction. Learn to de-stress. Plan to avoid burn out by developing healthy stress management techniques. Factors of job satisfaction Hoppock, the earliest investigator in this field, in 2005 suggested that there are six major components of job satisfaction. These are as under: The way the individual reacts to unpleasant situations, The facility with which he adjusted himself with other person The relative status in the social and economic group with which he identifies himself The nature of work in relation to abilities, interest and preparation of worker Security Loyalty Herzberg, mausaer, Peterson and capwell in 2007 reviewed more than 150 studies and listed various job factors of job satisfaction. These are briefly defined one by one as follows: Intrinsic aspect of job It includes all of the many aspects of the work, which would tend to be constant for the work regardless of where the work was performed. Supervision This aspect of job satisfaction pertains to relationship of worker with his immediate superiors. Supervision, as a factor, generally influences job satisfaction. Working conditions This includes those physical aspects of environment which are not necessary a part of the work. Hours are included this factor because it is primarily a function of organization, affecting the individuals comfort and convenience in much the same way as other physical working conditions. Wage and salaries This factor includes all aspect of job involving present monitory remuneration for work done. Opportunities for advancement It includes all aspect of job which individual sees as potential sources of betterment of economic position, organizational status or professional experience. Security It is defined to include that feature of job situation, which leads to assurance for continued employment, either within the same company or within same type of work profession. Company management It includes the aspect of workers immediate situation, which is a function of organizational administration and policy. It also involves the relationship of employee with all company superiors above level of immediate supervision. Social aspect of job It includes relationship of worker with the employees specially those employees at same or nearly same level within the organization. Communication It includes job situation, which involves spreading the information in any direction within the organization. Terms such as information of employees status, information on new developments, information on company line of authority, suggestion system, etc, are used in literature to represent this factor. Benefits It includes those special phases of company policy, which attempts to prepare the worker for emergencies, illness, old age, also. Company allowances for holidays, leaves and vacations are included within this factor. Reasons of low job satisfaction Reasons why employees may not be completely satisfied with their jobs: Conflict between co-workers. Conflict between supervisors. Not being opportunity paid for what they do. Have little or no say in decision making that affect employees. Fear of losing their job. Effects of low job satisfaction High absenteeism Absenteeism means it is a habitual pattern of absence from duty or obligation. If there will be low job satisfaction among the employees the rate of absenteeism will definitely increase and it also affects on productivity of organization. In the above diagram line AB shows inverse relationship between job satisfaction and rate of turnover and rate of absenteeism. As the job satisfaction is high the rate of both turns over and absenteeism is low and vive a versa. High turnover In human resource refers to characteristics of a given company or industry relative to the rate at which an employer gains and losses the staff. If the employer is said to be have a high turnover of employees of that company have shorter tenure than those of other companies. Training cost increases As employees leaves organization due to lack of job satisfaction. Then Human resource manager has to recruit new employees. So that the training expenditure will increases. Key parameters for Job Satisfaction Training and Job Satisfaction- Most of the literature in this area has focused on the impact of education and skills on job satisfaction rather than the effect of training as such. The relationship between skill acquisition and job satisfaction is not straightforward. First, there is the distinction between general and specific skills. (Quinn Staines,2009) The portability of general skills may raise job satisfaction as it is easier to move to other jobs where satisfaction is higher. In contrast, specific skills bind the worker to the firm and may reduce satisfaction by creating a barrier to exit as workers will lose a portion of the return on such skills if they move. (Near et al, 2003) This leads on to the question of the matching of individual skills and levels of education with job requirements. If workers are mismatched in terms of skill and education requirements, this may lower job satisfaction, as evidenced in the earlier literature. In one of the few studies to focus on skilling, Allen and van der Velden (2001) differentiated between education and skill mismatches, finding only a weak relationship between the two. Importantly, they found a significant negative relationship between skill mismatch and job satisfaction, while the link between educations mismatches and job satisfaction was insignificant. Training may influence workplace performance directly by raising output per worker, or be measured indirectly through its impact on the wage on the assumption that this is equal to the marginal productivity of labor. (Peterson Gonzalez, 2009) However, this will not be the case if there are imperfections in the product or labor markets. The nature of training has been examined in a number of studies. Thus Barrett and OConnell (2008) found that specific training had a bigger impact on wages and productivity than general training. Mason et al. (2006) found that both value added and product quality was higher where workers were trained to take charge of several production lines at once. Cosh et al. in a series of papers (2008, 2000 and 2003) found that training had a strong and significant effect on employment growth in small firms when it was undertaken regularly rather than on an ad hoc basis. Especially for larger firms there was also an association between intensity of training and profitability. Training may also stimulate innovation in the workplace (Bartle and Lichtenberg, 2007). Therefore it is doubtful whether different types of training impact either equally or positively on performance. Finally, training can have an indirect effect on performance if it increases job satisfaction by, for example, making it easier for employees to perform the job or feel more valued (as in Akerlofs 2002 conceptualization of the labor contract as a gift-exchange). Petty et al.s 2004 meta-analysis confirms such outcomes. In contrast, if workers feel dissatisfied they may react in a number of ways (Farrell, 2003): through a sense of loyalty they may stick it out; use a voice mechanism (Freeman, 2008, Freeman and Medoff, 2004); neglect their responsibilities to the employer by absence, lateness, striking or reduced effort (Akerlof and Yellin, 2006); or exit (Jovanovic, 2009, Burdett and Mortenson, 2008). Quits and Job Satisfaction- Until recently there had been relatively few studies by economists examining the role played by job satisfaction in quitting decisions. The main reason for this was the lack of large sample longitudinal data which could be used to identify job satisfaction in one period and job turnover in subsequent periods. Locke (2006) provided an extensive review of the literature in the psychology field, concluding that a negative correlation coefficient between job satisfaction and employee turnover was almost always obtained. However, correlation does not always imply causation and most of the studies cited by Locke used simple univariate analysis. In one of the seminal papers on job satisfaction, Freeman (2008) was one of the first economists to analyze the connection between quits and job satisfaction. Based on panel data from two different US sources, the National Longitudinal Survey (NLS, 2006-2001) and the Michigan Panel Survey of Income Dynamics (PSID, 2002-73 ), Freeman showed that job satisfaction was positively and significantly related to the probability of quitting. Moreover, he found not only that job satisfaction was quantitatively more important than wages, but also that the causality ran from job satisfaction to future quitting behavior. This relationship was confirmed by Akerlof et al. (2008) using data from the NLS Older Men Survey. Job Satisfaction and Absenteeism-Absenteeism is the term generally used to refer to unscheduled Strategies for Job Satisfaction Strategies for Job Satisfaction Introduction Job satisfaction is one of most important fields of study in the subject of human resource management. This important role of job satisfaction function leads the way in assuring high level of job satisfaction among the employees. Job satisfaction function of any HR vertical of an organization is primarily responsible for productivity of employees and the employee turnover. Since these two aspects can make or break the organizations performance in all areas, it requires attention from top management. (Lovelace Rosen, 2006) Job satisfaction function generally is part of the HR vertical with a clear mandate of motivating employee and continuously striving for higher employee job satisfaction through introduction of new policies and frameworks. The topic forms an integral part of organizational effectiveness and that has instigated me to choose this topic of job satisfaction. I shall try to study the existing literature on job satisfaction and will choose multinational companies to stud y their varied job satisfaction strategies and make analysis. (Parkes et al, 2001) Job satisfaction function is a vast topic and cannot be completely covered in this dissertation. Various researchers have already published their research articles on this subject. I shall be developing on it through understanding the different strategies used by MNCs in todays business environment for maintaining better levels of job satisfaction. Job satisfaction as stated earlier is a complex topic and hence I will try to break it down to simpler and more realistic frameworks to understand the thought process of an organization to ensuring better job satisfaction amongst its employees. (Gruneberg, 2009) According to Wood (2003), job satisfaction is the condition of contentment with ones work and its environment, denoting a positive attitude. Locke (2006) stated that, job satisfaction could be viewed as a pleasurable or positive emotional state resulting from the appraisal of ones job or job experiences. In other words, it can also be stated that, job satisfaction was simply a function of the degree to which a job provided the worker with positively values outcomes. Wanous (2000) said that, job satisfaction was a match between a persons need and the reinforcement received from work performed in an organization. The HR vertical of any organization shall try to achieve higher levels of job satisfaction through various techniques like awards program, job rotation, internal promotion scheme, family tours and training processes. (Rounds et al, 2007) There is no destination to achieving job satisfaction but the journey is perpetual in nature. Continuous improvement is the name of the game in achieving relatively good job satisfaction amongst the employees. The measure of job satisfaction can only be achieved through comparison in similar industries and through the employee turnover and productivity data. (Jackson et al., 2001) Job satisfaction is one of the most widely discussed and enthusiastically studied constructs. However, job satisfaction is among the most difficult constructs to define. A review of literature shows that constituted definitions of the construct vary from one researcher to the next. Wood (2003) describes the job satisfaction as the condition of contentment with ones work and its in my mind, denoting a positive attitude (p.8.). Locke (2006) stated that job satisfaction could be viewed as a pleasurable or positive emotional state resulting from the appraisal of ones job or job experiences. (p.1300) There are several reasons for studying job satisfaction. Organizations major job satisfaction primarily because of its presumed direct relationship to the short-term goals of cost reduction through increased individual productivity and reduced absences, errors, and turnover. (Cranny et al, 2002). Levels of job dissatisfaction have been found to be related to job turnover, absences, and tardiness. Turnover rates have been the most consistent major associated with job satisfaction. The potential negative consequences of employee turnover in terms of the impact of organizations. Negative effects of job turnover can include: increased costs to recruit, select and train new employer; demoralization of remaining employees; decreased social relationships among employees; negative public relations; disruption of a hi-fi and two-day activities; and decreased organizational possibilities to pursue growth strategies. In fact, several researchers reported a significant relationship between absenteeism and job satisfaction. According to Lawler (2007), the research evidence clearly shows that employees decisions about whether they will go to work on any given day and whether they will quit as affected by their feelings of job satisfaction. All the literature reviews on the subject have reached the same conclusion. The fact that present satisfaction influences future absenteeism and turnover clearly indicates that the commercial direction is from satisfaction to behavior. The literature also reveals that there is a correlation between job satisfaction and variables such as achievement, recognition, the word itself, responsibility, advancement, policy and administration, supervision, salary, interpersonal relations, working conditions, age, Tenure, educational level, job activities, and gender. The Purpose of the Study The purpose to choose this topic is to analyze the importance of job satisfaction in Multi National Companies (MNCs). The reason to go for MNCs is the increase in the shift over of the employees for future growth. The shifting, thus, includes the satisfaction in the given job role. Through my research, I will try to analyze the causes and effect relationship between the employee and the factors behind job satisfaction in a given MNC. Aim of the Study The main aim of the study is to investigate the remains leading to negative and positive job satisfaction in a MNC. The Objectives of the Study The key objectives of the chosen topic are: Estimating the causes of employee attitudes. Adjudging the results of positive or negative job satisfaction Measuring the employee attitude To assess facet-specific levels of job satisfaction To measure general job satisfaction, Literature Review There are several reasons for studying job satisfaction. Organizations measure job satisfaction primarily because of its presumed direct relationship to the short-term goals of cost reduction through increased individual productivity and reduced absenteeism, errors, and dissatisfaction has been found to be related to job turnover, absenteeism and tardiness. (Glisson Durick, 2008) Turnover rates have been the most constraints measure associated with job satisfaction (Atchison Lofferts, 2002; Brayfield Crockett, 2005, Dawis Lofquist, 2001). Mowday (2004) recapitulate the probable pessimistic significance of employee turnover in terms of the impact on organizations. There are various impacts of pessimism in job satisfaction on the turnover of the company such as: Increase in the recruitment cost. Recruiting new employees and then training them as well. It can lead to reduced social relations ships among employees. No or only few public relations. Reduction in companys prospects which can hamper the growth. According to Lawler (2005), the research evidence clearly shows that employees decisions about whether they will get to work on any given day and whether they will quit are effected by their feelings of job satisfaction. The fact that present satisfaction influences future absenteeism and turnover clearly indicates the causal direction is from satisfaction to behavior. There is a correlation between job satisfaction and variables such as achievement, recognition, the work itself, responsibility, advancement, policy and administration, working conditions, supervision, job activities and gender. Research Methodology Saunders et al (2005) Research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The research to be followed is a step-by-step process. This makes the entire research process systematic. Only primary research shall be used to draw inferences. (Ryan, 2009) The sources used shall be of international repute and will be trustworthy. The main source will be case study and also some books, journals, articles and publications including Internet sources. Chapter-2: Literature review An Overview Job satisfaction in considered to ones sensation or circumstances of intelligence regarding environment of their work. Job can be prejudiced by diversity of features like quality of ones relationship with their supervisor, quality of physical environment in which they work, degree of fulfillment in their work, etc. Positive attitude towards job are equivalent to job satisfaction where as negative attitude towards job has been defined variously from time to time. (Cherrington et al, 2009) In short job satisfaction is a persons attitude towards job. Job satisfaction is an attitude which results from balancing summation of many specific likes and dislikes experienced in connection with the job- their evaluation may rest largely upon ones success or failure in the achievement of personal objective and upon perceived combination of the job and combination towards these ends. According to pestonejee, Job satisfaction can be taken as a summation of employees feelings in four important areas. These are: Job-nature of work (dull, dangerous, interesting), hours of work, fellow workers, opportunities on the job for encouragement and progression (prospects), eventually system, attention in work, substantial background, and machines and apparatus. Management- managerial behavior, contribution, rewards and sentence, congratulate and responsibility, leaves strategy and preference. Social relations- associates and acquaintances, neighbors, approach towards populace in society, contribution in social activity scalability and background barricade. Personal adjustment-health and emotionality. Job satisfaction is an indicator of employee productivity and employee behavior at work. This may include inter employee relations, pro-activeness of employee, employee absenteeism no. of feedbacks from employees. These all factors are a direct measure of employee satisfaction of the job. The direct correlation has been established by earlier researchers and more so there is logical evidence to it in any business or industry. (Adams, 2003) The higher levels of job satisfaction is evident in an organization through lower absenteeism rates, low employee turnover, high employee productivity , proactively level of employees, labor unrest issues and participation in managerial decisions. (Saks Ashforth, 2007) Obviously, every organization desires for higher levels of employee job satisfaction; however it is a long drawn process with continuous improvement and direct focus from the senior leadership team of the organization. Job satisfaction cannot be used interchangeably with organizational morale; which the possessions of feeling have being accepted by and belonging to a group of employees through adherence to common goals and confidence in desirability of these goals. (Bedeian et al, 2002) Morale is the by-product of the group, while job satisfaction is more an individual state of mind. Definitions of job satisfaction Different authors give various definitions of job satisfaction. Some of them are taken from the book of D.M. Pestonjee Motivation and Job Satisfaction which are given below: As per Weiss, Job satisfaction is defined as a pleasurable, emotional, state resulting from appraisal of ones job. An effective reaction to ones job. For Blum and Naylor, Job satisfaction is general attitude, which is the result of many specific attitudes in three areas namely: Precise occupation features. Personal distinctiveness Group association exterior from the work According to Glimmer, Job satisfaction is defined, as it is result of various attitudes the person hold towards the job, towards the related factors and towards the life in general. Job satisfaction is defined as any contribution, psychological, physical, and environmental circumstances that cause a person truthfully say, I am satisfied with my job. Mr. Smith stated, Job satisfaction is defined, as employees judgment of how well his job on a whole is satisfying his various needs According to Locke, Job satisfaction is defined as a pleasurable or positive state of mind resulting from appraisal of ones job or job experiences. History of job satisfaction The term job satisfaction was brought to lime light by hoppock (2005). He revived 35 studies on job satisfaction conducted prior to 2003 and observes that Job satisfaction is combination of psychological, physiological and environmental circumstances. That causes a person to say. I m satisfied with my job. Such a description indicate the variety of variables that influence the satisfaction of the individual but tell us nothing about the nature of Job satisfaction. Job satisfaction has been most aptly defined by Pestonjee (2003) as a job, management, personal adjustment social requirement. Morse (2003) considers Job satisfaction as dependent upon job content, identification with the co., financial job status priding group cohesiveness. One of the biggest preludes to the study of job satisfaction was the Hawthorne study. These studies (2004-2003), primarily credited to Elton Mayo of the Harvard Business School, sought to find the effects of various conditions (most notably illumination) on workers productivity. Hawthorne Studies It is considered to be one of the best researches done on the job satisfaction. It was conducted by Mayo, Roethlisberger Dickson during the late 2000s and early 2000s at the Western Electric Company. Western Electric Management enlisted the help of Harvard business School professor is Elton Mayo, F.J Roethlisberger, and William Dickson, to help increase the output of workers assembling telephone release. The research started out as an investigation of the effects of physical working conditions on worker productivity, but ended up very differently. Mayo, Roethlisberger Dickson originally begin experimenting with the amount of lighting, expecting that productivity would rise as elimination increased to an optimum level. However, the hypothesis that productivity would write just as elimination increased to an optimum level was strongly disapproved why, after several experiments in large departments of the plant, it was discovered that changes in productivity occurred quite independently of B level of elimination. Mayo, Roethlisberger Dickson then started experimenting by introducing rest pauses of different lengths and different frequencies during the work day, supplying coffee breaks at various points in the day, and shortening the length of the world today at the work week. The results of the second part of the experiment were more amazing there was an upward trend in output, regardless of the introduction or withdrawal of rest periods, lunches, coffee breaks, shorter workdays, or shorten workweeks. Furthermore, avoid the experiment ended after a year, and the original conditions of work were restored in all previous privileges withdrawn, the daily and weekly output rose to our point higher than at any other time. (Mayo, 2003, pp.62-63) In addition, morale among the relay assembly room workers improved dramatically. There was a sharp increase in the amount of socializing among workers after ours. Moreover, absenteeism decreased 80% (Roethlisberger Dickson 2009). According to Dawis Lofquist (2001), the Hawthorne studies have been credited with limiting research into the causes of job satisfaction and dissatisfaction. These researches eventually illustrated that original alterations in job situations provisionally enhanced efficiency (called the Hawthorne Effect). Maslows hierarchy of needs Abraham Maslow, in a classic paper published in 2003, outlined the elements of an overall theory of human motivation. Maslow viewed human motivation in terms of a hierarchy of five needs: physiology needs; safety needs; belonging there is an alarm needs; S team needs; and, the need for self actualization (Maslow, 2000). According to Maslow, 2000, in the majors are motivated to fulfill whichever need was pre-potency, almost fourfold, for them at a given time. The pre-potency of the meat depended on the given current situation and recent experiences. Starting with physical needs, which were most basic, each member must be at least partially dissatisfied before the Indian visual experience to the desire to satisfy a need at the next higher level. Maslows need hierarchy is illustrated in figure 2.1. According to Sergiovanni (2004) and Davis and Newstrom (2009), physiological needs more likely to serve as motivators among workers in todays society, as most jobs issue or the fulfillment of physiological needs, such as food and shelter. However, higher level needs (belonging is and loved needs, S team needs, and the need for self actualization) may influence levels of employee motivation (Davis Newstrom, 2009). Figure 2.1: Maslows need hierarchy Levels of job satisfaction Level can be defined as an extent, major, or degree of achievement. Job satisfaction is a difficult construct a defined. Job satisfaction can be defined generally as the degree to which individuals feel positively or negatively about their jobs. Importance of job satisfaction Job satisfaction is an important indicator of how employees feel about their job and a predictor of work behavior such as organizational, citizenship, Absenteeism, Turnover. Job satisfaction can partially mediate the relationship of personality variables and deviant work behavior. Common research finding is that job satisfaction is correlated with life style. This correlation is reciprocal meaning the people who are satisfied with the life tends to be satisfied with their jobs and the people who are satisfied their jobs tends to satisfied with their life. This is vital piece of information that is job satisfaction and job performance is directly related to one another. Thus it can be said that, A happy worker is a productive worker. Job Satisfaction: Importance to worker organization Job contentment and work-related achievement are main factors in individual satisfaction, self-worth, sense of worth, and self-development. (Bruce Blackburn, 2002) To the employee, job satisfaction brings a pleasant expressive state that can often lead to an affirmative work attitude. (Schneider, 2001) A pleased worker is more likely to be imaginative, flexible, innovative, and dependable. For the organization, job satisfaction of its workers means a work force that is enthused and dedicated to high quality performance. (Carrell Elbert, 2004) Augmented output- the quantity and quality of output per hour worked seem to be a by creation of enhanced class of working life. It is vital to note that the literature on the association between job happiness and output is neither definite nor consistent. (Glisson Durick, 2008) On the other hand, research dating back to Herzbergs time (2007) has shown at least low association between high confidence and high efficiency and it does seem logical that more satisfied workers will be likely to add more worth to an organization. Discontented employees, who are stimulated by fear of loss of job, will not give 100 percent of their effort for a very long time. Although apprehension is a powerful motivator, it is also a brief one, and also as soon as the threat is lifted performance will decline. Employment satisfaction profits the organization and includes reduction in complaints and grievances, employee absenteeism, work force turnover, and termination; as well as improved regularity and worker morale. (Ryan, 2009) Job liking is also linked with an improved work force and has been found to be a good pointer of prolonged existence. Even though only slight connection has been found amongst job satisfaction and productivity, Brown (2006) writes that few employers have discovered that satisfying or delighting work force is one of the most important prerequisite to satisfying or delighting customers, thus ensuring the growth of bottom line of the organization. Job Satisfaction: Employees Responsibility If job contentment is a worker advantage, certainly the employee must be talented to add to his or her own contentment and comfort on the job. (Joplin et al, 2007) The following suggestions can assist an employee to find his or her own satisfaction at job: search for opportunities to display skills and aptitude. This repeatedly leads to even more demanding work and higher responsibilities, with assistant increases in salary and other recognition and rewards. Build up extraordinary communiquà © skills. Companys value and rewards excellent reading, listening, writing and speaking skills. Be acquainted with more. Obtain new work related information and skill that helps you to complete job more economically and effectively. This will take off monotony and often gets one noticed. Reveal creativity and initiative. Merits like these are respected by most companies and often come with in recognition as well as improved responsibilities and promotions. Initiate teamwork and man management skills. A big part of job related achievement is the aptitude to work well with others to get the job done. (Lyons et al,2003) Accept the diversity in people. Accept people with their differences and their imperfections and learn how to give and receive criticism constructively. (Peterson Gonzalez, 2009) See the value in your work. Appreciating the significance of what one does can lead to satisfaction with the work itself. This help to give meaning to ones existence, thus playing a vital role in job satisfaction. Learn to de-stress. Plan to avoid burn out by developing healthy stress management techniques. Factors of job satisfaction Hoppock, the earliest investigator in this field, in 2005 suggested that there are six major components of job satisfaction. These are as under: The way the individual reacts to unpleasant situations, The facility with which he adjusted himself with other person The relative status in the social and economic group with which he identifies himself The nature of work in relation to abilities, interest and preparation of worker Security Loyalty Herzberg, mausaer, Peterson and capwell in 2007 reviewed more than 150 studies and listed various job factors of job satisfaction. These are briefly defined one by one as follows: Intrinsic aspect of job It includes all of the many aspects of the work, which would tend to be constant for the work regardless of where the work was performed. Supervision This aspect of job satisfaction pertains to relationship of worker with his immediate superiors. Supervision, as a factor, generally influences job satisfaction. Working conditions This includes those physical aspects of environment which are not necessary a part of the work. Hours are included this factor because it is primarily a function of organization, affecting the individuals comfort and convenience in much the same way as other physical working conditions. Wage and salaries This factor includes all aspect of job involving present monitory remuneration for work done. Opportunities for advancement It includes all aspect of job which individual sees as potential sources of betterment of economic position, organizational status or professional experience. Security It is defined to include that feature of job situation, which leads to assurance for continued employment, either within the same company or within same type of work profession. Company management It includes the aspect of workers immediate situation, which is a function of organizational administration and policy. It also involves the relationship of employee with all company superiors above level of immediate supervision. Social aspect of job It includes relationship of worker with the employees specially those employees at same or nearly same level within the organization. Communication It includes job situation, which involves spreading the information in any direction within the organization. Terms such as information of employees status, information on new developments, information on company line of authority, suggestion system, etc, are used in literature to represent this factor. Benefits It includes those special phases of company policy, which attempts to prepare the worker for emergencies, illness, old age, also. Company allowances for holidays, leaves and vacations are included within this factor. Reasons of low job satisfaction Reasons why employees may not be completely satisfied with their jobs: Conflict between co-workers. Conflict between supervisors. Not being opportunity paid for what they do. Have little or no say in decision making that affect employees. Fear of losing their job. Effects of low job satisfaction High absenteeism Absenteeism means it is a habitual pattern of absence from duty or obligation. If there will be low job satisfaction among the employees the rate of absenteeism will definitely increase and it also affects on productivity of organization. In the above diagram line AB shows inverse relationship between job satisfaction and rate of turnover and rate of absenteeism. As the job satisfaction is high the rate of both turns over and absenteeism is low and vive a versa. High turnover In human resource refers to characteristics of a given company or industry relative to the rate at which an employer gains and losses the staff. If the employer is said to be have a high turnover of employees of that company have shorter tenure than those of other companies. Training cost increases As employees leaves organization due to lack of job satisfaction. Then Human resource manager has to recruit new employees. So that the training expenditure will increases. Key parameters for Job Satisfaction Training and Job Satisfaction- Most of the literature in this area has focused on the impact of education and skills on job satisfaction rather than the effect of training as such. The relationship between skill acquisition and job satisfaction is not straightforward. First, there is the distinction between general and specific skills. (Quinn Staines,2009) The portability of general skills may raise job satisfaction as it is easier to move to other jobs where satisfaction is higher. In contrast, specific skills bind the worker to the firm and may reduce satisfaction by creating a barrier to exit as workers will lose a portion of the return on such skills if they move. (Near et al, 2003) This leads on to the question of the matching of individual skills and levels of education with job requirements. If workers are mismatched in terms of skill and education requirements, this may lower job satisfaction, as evidenced in the earlier literature. In one of the few studies to focus on skilling, Allen and van der Velden (2001) differentiated between education and skill mismatches, finding only a weak relationship between the two. Importantly, they found a significant negative relationship between skill mismatch and job satisfaction, while the link between educations mismatches and job satisfaction was insignificant. Training may influence workplace performance directly by raising output per worker, or be measured indirectly through its impact on the wage on the assumption that this is equal to the marginal productivity of labor. (Peterson Gonzalez, 2009) However, this will not be the case if there are imperfections in the product or labor markets. The nature of training has been examined in a number of studies. Thus Barrett and OConnell (2008) found that specific training had a bigger impact on wages and productivity than general training. Mason et al. (2006) found that both value added and product quality was higher where workers were trained to take charge of several production lines at once. Cosh et al. in a series of papers (2008, 2000 and 2003) found that training had a strong and significant effect on employment growth in small firms when it was undertaken regularly rather than on an ad hoc basis. Especially for larger firms there was also an association between intensity of training and profitability. Training may also stimulate innovation in the workplace (Bartle and Lichtenberg, 2007). Therefore it is doubtful whether different types of training impact either equally or positively on performance. Finally, training can have an indirect effect on performance if it increases job satisfaction by, for example, making it easier for employees to perform the job or feel more valued (as in Akerlofs 2002 conceptualization of the labor contract as a gift-exchange). Petty et al.s 2004 meta-analysis confirms such outcomes. In contrast, if workers feel dissatisfied they may react in a number of ways (Farrell, 2003): through a sense of loyalty they may stick it out; use a voice mechanism (Freeman, 2008, Freeman and Medoff, 2004); neglect their responsibilities to the employer by absence, lateness, striking or reduced effort (Akerlof and Yellin, 2006); or exit (Jovanovic, 2009, Burdett and Mortenson, 2008). Quits and Job Satisfaction- Until recently there had been relatively few studies by economists examining the role played by job satisfaction in quitting decisions. The main reason for this was the lack of large sample longitudinal data which could be used to identify job satisfaction in one period and job turnover in subsequent periods. Locke (2006) provided an extensive review of the literature in the psychology field, concluding that a negative correlation coefficient between job satisfaction and employee turnover was almost always obtained. However, correlation does not always imply causation and most of the studies cited by Locke used simple univariate analysis. In one of the seminal papers on job satisfaction, Freeman (2008) was one of the first economists to analyze the connection between quits and job satisfaction. Based on panel data from two different US sources, the National Longitudinal Survey (NLS, 2006-2001) and the Michigan Panel Survey of Income Dynamics (PSID, 2002-73 ), Freeman showed that job satisfaction was positively and significantly related to the probability of quitting. Moreover, he found not only that job satisfaction was quantitatively more important than wages, but also that the causality ran from job satisfaction to future quitting behavior. This relationship was confirmed by Akerlof et al. (2008) using data from the NLS Older Men Survey. Job Satisfaction and Absenteeism-Absenteeism is the term generally used to refer to unscheduled

The World Bank, Tourism, and Sex Work Essay -- Essays Papers

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The Systematic Destruction of Womens Agency in Juárez, Mexico :: Gender Culture Murder Womens Agency Papers

The Systematic Destruction of Women's Agency in Juà ¡rez, Mexico As citizens, people rely on the state as an agent that acts on their behalf, by providing them with benefits such as basic protection. However, the state itself derives its power (or agency) from the fact that its citizens give up some of their individual agency in exchange for the benefits that belonging to a state provides. People are, thus, both the creators and the subjects of the state. In Juà ¡rez, Mexico the state has been shaped by a patriarchy that is very oppressive to women. The women are then subjects to this very oppressive state. Virginia Woolf claims that these women can gain agency and freedom by obtaining economic independence. But, in the case of Juà ¡rez, Mexico this economic freedom has deadly effects. Woolf's argument is very limiting and applied to a much more ideal situation. In this essay I will explore the climate in Juà ¡rez that seems to prove Woolf's theory wrong. I will also look at how her claims can offer hope to the women of Juà ¡rez so that they c an alter the climate so that everyone has agency not just the men and the state. Mexican culture has always placed the women in the home. Placement in the private sphere without the opportunity to earn money has always limited women's agency and freedom. Men have typically held the position of power because of their economic independence. As the holders of power in the public sphere, men have created a patriarchy in which the opinions have governed the laws that are passed within Mexico. Before the murders in Juà ¡rez began, and even still, women were offered very little protection by the government especially when it came to violence and rape. The machismo culture in Mexico sets up a climate in which young women can be beaten raped and murdered with little to no consequences. Domestic abuse laws in Mexico, state that a woman may not file domestic abuse charges if her wounds heal before the end of 15 days. Women are constricted to the private sphere according to Mexican culture. The women give up their rights to be in the public sphere with the hope and understa nding that they will be protected in the private sphere. They, however, do not receive this protection. Men can essentially beat their wives with no consequence. Additionally, rape laws are very lax.

Lord Byron’s Darkness Essay -- essays papers

Lord Byron’s â€Å"Darkness† Lord Byron’s â€Å"Darkness† illustrates a dark and pessimistic outlook for the world as we know it. The world loses all sense of hope and is left with only despair and darkness after the loss of the provider of thought and hope-sunlight. With the extinction of sunlight comes the destruction of social classes due to inevitable fear of death, and, as a result, all that is left is chaos. The psychological mind drastically changes its mannerisms and mode of thinking when faced with life and death situations. In the solitude of pitch-black infinite space, â€Å"men forgot their passions†-all values were lost, hopes and goals were put on hold, and only darkness existed. A world living in darkness was forced to displace its social classes and live one in utter darkness. All ...

Different businesses and their ownerships Essay

Introduction- The purpose of this report is to look at economic development matters and what encourages new businesses to locate to a new business park. I will be investigating two contrasting businesses that will create new jobs in the local economy. For the voluntary sector I have chosen Oxfam and for the private sector I have chosen Topshop. I have chosen Topshop and Oxfam as my two contrasting businesses. Topshop is a young girls and women’s clothes shop. This business is international and has stores all over the country. Topshop has 300 stores they are still growing and expanding. The owner of Topshop owns other retail shops like Miss Selfridge and Dorothy Perkins. Topshop is part of Arcadia, a public limited company is owned by shareholders, which may be members of the public. Their shares can be bought and sold on the stock exchange. Topshop is run by a board of directors. These people make the major decisions within the business. They have limited liability; this means if the business gets into debt and cannot pay it, the business will get sued. This is known as incorporation. The shareholders’ personal assets cannot be taken to pay the debt; they are then only liable for how much they have invested in the business. The purpose of Topshop is to sell range of clothes for the public to buy, also to make profit. Oxfam is an international charity that was founded in 1942 in England. This organisation provides help to poor countries and disaster affected areas. The purpose of this contrasting business is to help people rebuild lives working on long term projects with communities determined to help ensure they have a better future. Topshop have their own aims and objectives, their aims are: Profit and profit maximisation – they want to make as much profit as they can Survival- they as a business want to be able to survive within the clothes industry and not fail because other businesses similar to them are opening up. Growth- they also want to be able to grow and expand their business and set up more stores in different part of the world to maximise their profit. Their SMART objectives are: SMART stands for Specific, Measurable, Achievable, and Realistic, time Constrained. Their objectives are Specific because Topshop will only aim to focus on clothing and fashion accessories particularly directed at women. Measureable in this context will mean that Top shop’s market share can be easily assessed and get to know of their changing needs and wants. Achievable because their business strategies can be stretched to achieve the desired market share. Realistic would be whether they are actually achievable or not. Time constrained will mean they will achieve all the objectives by a certain time. Oxfam also have their own aims and objectives, their aims are: Oxfam’s aims are: To help people in poor countries and relieve poverty Help provide education for people who are in need of it They take donations like toys and clothes, and then they sell on for money and all the money goes to that charity. Raise money and encourage charitable giving. Oxfam’s objectives include To provide clean hospitals To be caring and welcoming to new people To be well organised Give the best possible treatment they can Give as much advice as they can Within Topshop there are a number of different stakeholders which influence the purpose of the business. The purpose of Topshop is to provide good products for customers and also to provide a good service. A stakeholder is anyone with an interest in a business. These can be individuals, groups or organisations and they are affected by the activity of the business. Topshop’s stakeholders: Customers- The businesses aims are set to please the customers and live up the customer expectations. The customers of Topshop expect high quality and value for money clothes and products. They also expect the latest fashion trends and to look good in them as they are paying so much. Topshop as a big clothing shop are aiming to make the working conditions better for the people that are producing their products so then the customers know the clothes have been made in good working conditions which is a benefit . If the customers at Topshop didn’t get what they wanted, they could go elsewhere. Therefore customers have an influence over how Topshop run their business. Employees- Topshop need employees to help the business to expand and open a range of stores. Employees can influence Topshop by contacting their trade unions if they’re not happy with their working conditions. Their point of view would be to make sure they have good rates of pay, good working conditions, contract of employment sick pay and holiday entitlements. Suppliers- For Topshop to make enough profit to keep the business running, they will need suppliers to be able to buy products and sell them to customers. Without suppliers the business wouldn’t survive. Owners- Owners are shareholders in the business, people that have invested in Topshop. If Topshop didn’t have shareholders then the business wouldn’t run as well. Trade unions- It’s an organisation which supports workers when they are in disputes with their employees over the rates of pay they are getting or working conditions they are in. If the manager of the business does not agree with the trade unions or employees then Topshop could lose staff over this. Local communities The community may shop in Topshop as it’s the closest store to them. This will influence Topshop by having local customers who may always have a quick look in their store when they have time. This will increase profit for  Topshop. Government- They make all the laws which Topshop have to stick to. This means if they don’t stick to these laws they could get fined and loses customers over. In conclusion, some stakeholders will have a much bigger influence compared to the others. For example staff could go elsewhere and find a new job and work there instead. Oxfam’s stakeholders Customers- Customers in Oxfam will buy products and the money made will go to the charity then gets passed on the people to provide them with foods, clothes etc. If Oxfam didn’t have customers then they wouldn’t be able to raise money and help people that are in need of education, clothes and food and water. Employees – Oxfam needs employees to help the commerce to expand its self and open more stores up around the world. Also they would need staff to help achieve their aims and objectives. The employees that work at Oxfam are volunteers and they don’t get paid. If they don’t have employees then the business wouldn’t be able to raise money for the charity. Suppliers- They have two types of suppliers, members of the general public who donate second hand goods. They influence Oxfam because if they didn’t donate to this organisation then Oxfam as a charity wouldn’t be able to stock their shops. The second types of suppliers have medical supplies which help people in third world countries. Owners- Oxfam is a charity and as such does not have owners but trustees who help to keep the organisation on track with its aims and purpose. Local communities- Local community donate and buy goods from the charity. They influence Oxfam because they buy goods of them and if they didn’t Oxfam wouldn’t be able to achieve their target of making money to give to that charity. Government – The government make laws and legislation which Oxfam must follow. They  influence them because Oxfam may have to change the way they work and how they run the business. In conclusion, the stakeholders of Oxfam have a big influence on the business and how they run the business. For example, employees have the biggest amount of influence because if the business doesn’t have enough staff they wouldn’t be able to expand the business and create more stores around the world to raise more money. Both organisations have a number of different stakeholders. Each of the stakeholders will have a level of influence on the businesses. Some stakeholders will have more influence than others. The stakeholders that I think would have the most influence in Topshop would be customers, employees, government and shareholders. Topshop’s main aim is to make a profit. Customers in Topshop want the latest fashionable clothes at reasonable prices. They also expect high quality products t hat last the season. If Topshop introduced clothes that did not meet their customers’ expectations then sales would decrease and Topshop would not be able to achieve their aims and objectives as they wouldn’t be making enough money to make a profit. Employees that work in Topshop have an influence on the businesses aims and objectives because if they didn’t have employees to work in the stores then they wouldn’t meet their aims and objectives as a business because people have any to buy the product off. Also employees are needed widely for expanding the business to different part of the world and opening more of the stores. The government also have a big influence on Topshop’s business aims and objectives as they make all the laws for not only that business but other businesses too and if the business doesn’t follow or stick to those rules then they will get fined and could have a bad reputation created which would have negative influences on them as current cust omers may be put off buying products from them and go to one of their competitors close by like New Look or River Island. Shareholders are the last of the four stakeholders I think have a big influence on Topshop’s aims and objectives. They are important because the store wouldn’t grow and expand if they didn’t have owners. Both organisations have a number of different stakeholders. Each of the stakeholders will have a level of influence on the businesses. Some stakeholders will have more influence than others. The stakeholders that I think would have the most influence in Oxfam would be volunteers, customers. I think volunteers would have a big influence on the businesses aims and  objectives for Oxfam because without volunteers, the stores wouldn’t be able to run and that means the charity would have money donated for the charity. Oxfam is not out there to make a profit; the business would be struggling not because of them not making a profit as there wouldn’t be anyone to work in the shops. Customers are very important in the influence of Oxfam’s aims and objectives as the business wants to have second hand goods handed in from the customers and then people will buy the second hand goods if they know the money is going to charity. If the customers weren’t coming into the charity shops then this would affect their aim to raise money because there is no-one to buy the products. Overall, I know that within the two contrasting businesses I have described above, they both have a number of different stakeholders that have an influence on their businesses aims and objectives.

Report on NatWest Bank’s Creativity and Innovation Essay

NatWest Bank is a member of the Royal Bank of Scotland Group (RBS Group). In 1968 National Provincial Bank (est.1833) and Westminster Bank (est.1836), fused as National Westminster Bank. Jointly, these banks could outline their history back down the centuries through a ancestry of influential constituents, since the 1650’s. The declaration totally astonished the public, but to both banks the benefits were obvious – the merger enhanced balance sheet strength, created opportunities to streamline the branch networks and enabled greater investment in new technology. The statutory process of integration was completed in 1969 and National Westminster Bank commenced trading on 1 January 1970, with the three-arrowheads symbol as its Logo of the company with 3,600 branches, established a wide range of new services, including the bank’s first credit card, Access, in 1972, and computer-linked cash dispensers, Servicetills, in 1976. Deregulation in the 1980s, culminating in ‘Big Bang’ in 1986, also encouraged National Westminster Bank to enter the securities business. County Bank, the Group’s merchant bank, acquired stockbroking and jobbing firms to create NatWest Investment Bank. In the mean time, the International Banking Division appeared to offer international banking services to large companies and to focus on expansion in the USA, the Far East and Europe. In the 1980s new services were developed such as telephone banking and touch- screen share dealing to assist the government’s privatisation programme. The 1980’s also saw the National Westminster Home Loans established in 1980 and the Small Business Unit in 1982. The Switch debit card extended the electronic transfer of money to point of sale in 1988. In the 1990s financial services markets world-wide underwent huge variations and in response the bank refocused its activities, exiting from a number of markets and adopting the title of NatWest. In March 2000, The Royal Bank of Scotland Group completed the acquisition of NatWest in a  £21 billion deal that was the large st take-over in British banking history. NatWest ranks fifth in the world and is now part of a financial services group which is the second largest bank by market capitalisation in the UK and in Europe. (NatWest 2006) Read more: Essay About National Westminster Bank Creativity and Innovation of the Bank: With granting a muscular competitive encourage to innovation, creativity and efficiency, it always attains lead on rival firms. Innovation is a driver of productivity growth. Novel products, processes and methods of working can relent efficiency gains and quality improvements not only within the innovating firm, but also within other firms that recap or institute on the innovation within their own firms. There are a number of reasons why the rate of innovation is likely to fall below socially optimal levels, and smaller innovating firms may face particularly severe barriers to innovation. The key constraints are: †¢ Limited access to risk capital: The informational impediments to free- functioning markets for SME finance were discussed earlier in this chapter, but it is particularly difficult for potential lenders or investors to assess likely risk and returns accruing to future research or to the implementation of unproven innovations. Newly-established innovating firms often m ake a loss and face severe cash-flow constraints in their early years. †¢Difficulties appropriating the full benefits of innovation: Whilst a competitive environment will provide the best general incentive for firms to innovate, firms need to be confident that they can reap the rewards of their innovation. This is why the intellectual property regime allows firms to prevent, for a limited period, their competitors from copying their innovations. This is a necessary reward for the costs of R&D, and helps to encourage innovation. Nevertheless, the internal return to innovation may still be modest relative to the industry-wide benefits that arise once the innovation can be replicated by other firms. †¢ Inability to diversify risk: While larger companies may have a large portfolio of innovative activity, innovation in smaller firms may be concentrated on a single product or process, and the cost of undertaking the necessary R&D may be very large relative to the overall financial assets of the company. Accordingly, where SMEs are risk-averse, they will be discouraged from investing in innovative activities with uncertain returns. Assembling the enterprise confront will rely on the innovation and creativity of entrepreneurs themselves, but the Government must also provide the right cond itions and the necessary support for successful enterprise. (Cosh and Hughes 2000) The NatWest Group has a total of 6 UK banking licences and licences from several other authorities. There are two principal costs linked with getting to the position where a bank is in a position to obtain and maintain its banking licence: 1) Implementing a reporting system that satisfies the requirements of the regulators. In addition to standard financial reports these would include implementing the systems to monitor and report capital adequacy, liquidity, credit risk, and interest rate risk etc. 2) Ensuring that there is the necessary infrastructure in place to satisfy individual regulatory requirements on operational areas such as money laundering, advertising and sales of financial products. There are also noteworthy sunk costs in coping with the provision of creativity infrastructure. To replace the existing branch and service centre network and administrative buildings is a major project in its own right and in addition to the costs of such physical assets, which are on the balance sheet it would be necessary to handle the stipulation of such facilities. Costs would also be involved in the provision of such items as HR policies, for example the sunk costs associated with setting up employee benefit programmes, such as pension plans, stock options, bonus schemes, car schemes, health care etc. The same tactic has been adopted and this turns up at an total expenditure of  £ [255] m. This is probably a conservative estimate. Over the period 1996 to 2000 NatWest incurred expenses of around  £ [13] bn in respect of its Retail Transformation programme, which was only a modification of part of its existing infrastructure rather than creation of a totally innovative one. (RBSG, 2002) NatWest depends entirely upon the qualities of innovation, and suffer more acutely from the rapidity of transform. Whether in presentation, writing, the visual arts or advertising, the progress of new ‘product’ is at the heart of all doings. Without this self- generated action, there is not anything to put up for sale. The sector therefore has a specific and challenging manufacturing process or value chain which, at each stage, demands different talents. At the raw development end of production (ideas generation, creating, training) there is a need for concepts, leading edge ideas and formulations, creativity, innovation and initiative customer orientation. Problem solving is paramount. At the moment of production (turning ideas into products, locations for production) – this first set of aptitudes is still important but must be supplemented by: _ï€  Intelligence, understanding of the market, industry foresight and strategic view; _ï€  Effective management o f resources; _ï€  Ability to develop and manage relationships with partners, explore new connections and collaborations with suppliers. The merger of the Royal Bank of Scotland (BoS) and Halifax to form HBOS resulted from increasing competitive pressures in the financial sector. Since about 1980, with the decline of heavy industries and growth of a service economy, like other clearing banks, BoS was obliged to expand further into small business lending and new retail products (e.g. residential mortgages, financial services, credit cards, etc.). Competition was exaggerated by banking deregulation, which led to the growth of a secondary banking sector, the transformation of many building societies (including Halifax) into banks, and new amalgamations into ever-larger banks (as cited in Leyshon and Thrift 1993). During this period there was increasing concern in the Scottish banking community about the potential for takeovers to erode a distinctive Scottish banking sector (as cited in Saville 1996: 717-40), which had been partly maintained by an historical ‘gentleman’s agreement’ between the English and Scottish banks to limit their presences in each other’s markets. In September 1999, BoS surprised The City of London by making a  £20.85 billion bid to take over NatWest Bank, in effect striking first in an environment where further bank mergers seemed inevitable. Many in the financial press were quick to point out that under these new terms, BoS and other Scottish banks could not expect to have the ir future ‘independence’ protected. In late November the Royal Bank of Scotland, BoS’s main competitor in Scotland, made a successful counter bid of  £25.1 billion. The City now anticipated a takeover of BoS, compelling BoS to keep pace with the Royal Bank. BoS and Halifax began merger negotiations in April 2001, and the new banking group, HBOS, began trading on the stock market on 10 September, 2001. The Halifax was the dominant partner in the merger, being about twice the size of BoS in terms of number of employees and market value at the time of merger, and supplying key organizational leadership, including the CEO. The core rationale of the merger was that it brought together Halifax’s substantial mortgage lending income and BoS’s expertise and placement in the corporate banking world to create new business opportunities for the merged organisation. It also saw the dislocation of BoS’s rather conventional, cautious and habitual banking ethos by the more modern, competitive and market driven ethos of the Halifax organisation. Thus the merger was experienced by staff as an encounter between two different corporate cultures, and two different national cultures, at the same time. By ‘the ideology of change’ it specifies an ideological condition that corresponds closely with Therborn’s conception of modernity. With this phrase I want to dire ct attention not so much to a set of ideas and beliefs about change, but more to a disposition, or attitude toward change. I mean to suggest a normatively charged attitude in which established ways of doing things are devalued and innovation and change is positively valued in principle, regardless of the particulars of any given situation. It is, in a sense, a ‘presumption of guilt’ in regard to the old, and ‘presumption of innocence’ in regard to the new. This attitude is deeply naturalised, so that the imperative and positive value of change is widely regarded as self-evident, and not easily questioned. Thus rather than the great social critiques and political programmes associated with the formation of modernity, I mean to invoke a routinized and normalized aspect of established modernity—seen in the way political parties and governments promote themselves through promises of reform, in the way corporations and public institutions are constantly restructuring in order to ‘modernize’ and keep pace with their competitors, and in the way consumer-citizens in capitalist society come to expect scientific and technological advances that will increase knowledge and improve commodities and services, while fashions in popular culture rapidly replaces one another. The ideology of change is mundane, relentless common sense. Some problems of ‘innovation and creativity’ lay with the organization and its leadershi p, rather than personnel, the exhortation to embrace change was ultimately being translated into a message of personal moral reform. In this way the ideology of change, while meeting resistance, percolated down to beleaguered selves seeking some greater purchase on their state of affiars. (Hearn 2006) HRM Strategic Milestones in NatWest: During 1990–91 County NatWest, an investment bank, asked all its business units, including its personnel department, to set up strategic milestones for a five-year period. Their performance was to be measured against those milestones at specified target dates. The requirement to produce strategic milestones as an input to the bank’s five-year marked an important watershed in defining the contribution of personnel to the business at a strategic level. It forced the department to reflect on the nature of that contribution. Senior management of the bank duly authorised 18 separate strategic milestones. The milestones were consistent one with the other, and overall addressed issues that consultation within business units and across the three personnel teams had shown to be critical to business success. Each milestone was assigned to a designated individual and was incorporated into his or her own targets of performance. Quarterly reviews on progress, involving the whole department, were subsequently held to ensure that the milestones were on target. The operational tasks that a centralised T&D planning process involves seek to ensure that: T&D considerations are taken fully into account when business strategy is formulated. They form part of a human resource plan within the wider business plan. At business unit/divisional level there are policies to ensure people are trained and developed in line with the needs of the business. At the individual level T&D is an integrated part of daily routine and procedures, helping people to achieve performance standards and behavioral objectives and building up the kind of workforce needed in terms of productivity, quality and flexibility. T&D staff operates a collaborative approach to planning at every stage in order to ensure a high level of buy-in from line management and other stakeholders. (Harrison 2001) Conclusion: NatWest Bank had recently a remarkable triumph over the competitors on November 15 2006 in the 12th Annual Convention- CCA Excellence Awards categorized for â€Å"Best Customer Focus: Financial Services† (details available on http://www.ccai.org.uk/events). The Bank is the second giant bank in the entire Europe (after Deutsche Bank) and incredibly progressed in a very short span of time (as discussed in the historical background). NatWest’s creativity and innovation â€Å"line of attack† led the bank to the stature of success. Chinua Achebe (1930 – ), Nigerian novelist, poet, and essayist rightly says: â€Å"Contradictions if well understood and managed can spark off the fires of invention. Orthodoxy whether of the right or of the left is the graveyard of creativity†. (Anthills of the Savannah) References NatWest; A History, (2006), NatWest Bank, available on accessed April 29 2007. Cosh and Hughes, (2000), Tackling Market Failures, British Bankers Association. Jonathan Hearn, (2006), National Identity, Organisational Culture, and the Ideology of Change in Scotland, BSA Annual Conference, Scottish Study Group. Rosemary Harrison, (2005), Producing and Implementing L&D Strategy, CIPD Publications. Appendix A: NatWest Glossary AER – Annual Equivalent Rate. This shows what the interest rate would be if interest were paid and added to your account each year. APR – Annual Percentage Rate. The interest payable on what you’ve borrowed is added up along with other charges (e.g. arrangement fees) and then expressed as an annual rate of charge. The APR helps you compare the true cost of borrowing, for example for a mortgage. The APR takes into account all fees and charges applied to the mortgage as well as the monthly payments over the life of the loan. arrangement fee â₠¬â€œ a fee to cover administration. arrears – money that was due to be paid but has not been paid. When you are behind in payments, you are in arrears. assets – your money, property, goods and so on that have a financial value. assurance – a policy that you pay for, and that pays money to your next of kin when you die. banker’s draft – a cheque drawn on the bank (or building society) itself against either a cash deposit or money taken directly from your own bank account. A banker’s draft is a secure way of receiving money from someone you don’t know and where a cash is inconvenient. Banker’s drafts are commonly used for large purchases such as homes and cars. base rate – the interest rate from which lenders set their rates for lending and savings products. It’s usually based on the base rate set by the Bank of England. capital – money that you’ve invested or borrowed (e.g. to buy a home). It doesn’t include the income or profit you get from an investment, or the interest you have to pay on a loan o r mortgage. CHAPS – Clearing House Automated Payment System. This is a system that enables money to be transferred from one bank account to another on the same day. chip and PIN – a system to reduce card fraud. A chip and PIN card has a ‘smart’ chip that holds your four-digit Personal Identification Number (PIN). When you pay in a shop with a chip and PIN card, you’ll be asked to enter your PIN into a keypad instead of signing a receipt. This PIN is the same number that you use to withdraw money at a cash machine. cleared balance/cleared funds – includes credits (cheques and cash) that have completed the clearing cycle. You can only withdraw or transfer money to another account with money from your cleared balance. The cleared balance is updated during the day as you make payments into and out of your account. clearing cycle – the process that your cheque goes through when you pay it into your account. A cheque won’t be cleared if, for example, the person who gave it to you doesn’t have en ough money in their account. credit card – allows you to borrow money to pay for goods and services without using cash or cheques. credit balance – the amount of money in your account. credit limit – the maximum amount of money that you may borrow. debit card – allows you to pay for goods and services without writing cheques or using cash. The money is taken directly from your current account (you don’t borrow the money as with a credit card). Some debit cards can also be used to guarantee cheques. debt – an amount of money that you owe to a person or company. Direct Debit – an instruction from you to your bank or building society allowing someone to take money from your account. The amount of money taken can vary, but you must be told the amounts and dates beforehand. Direct Debits allow you to pay bills automatically from your account on a regular basis. discounted rate – a variable rate that is set at a fixed percentage amount below the lender’s standard variable rate for a period of time. At the end of the period, the mortgage goes back to the lender’s variable rate. EAR – Effective Annual Rate. This is the amount of interest charged on an overdraft and is stated as an annual rate. Unlike the APR, the figure does not include any fees or charges. Equity (in property) – the difference between how much your property is worth the balance of your outstanding mortgage and any other debts secured on the property. Equity release – a way of releasing extra money by borrowing against the equity in your home. ERTF – Exchange Rate Transaction Fee. This is a fee that you pay when withdrawing foreign currency from a cash machine or when paying for something in another currency (e.g. when you’re on holiday abroad). The foreign currency is converted into pounds sterling (using the bank’s exchange rate) and a fee for doing this is added. fixed-rate interest – an interest rate that stays the same throughout an agreed period. flexible mortgage – a mortgage that allows you to make overpayments and underpayments on the mortgage without penalty, and, in some cases, to take payment holidays. gross – the whole amount before any deductions (such as tax or fees) are made. gross interest rate – interest before income tax is deducted. Insurance policy – a policy that you pay for, and that pays money to you to cover possibilities such as theft, damage to property, loss and so on. interest – the amount that you pay when you borrow money. It’s expressed as a percentage rate over a period of time. interest-free – no interest is charged on money that you borrow. interest-only mortgages – a loan on which you only pay the interest element. The amount of capital you owe remains the same throughout the term of the mortgage and is due to be repaid at the end of the term. interest rate – the rate at which you pay back interest, expressed as a percentage of the amount you borrow. investment – something you put money into that will provide income in the future (such as savings) or gain in value so that you can sell it at a higher price later (such as a house). loan – money that you borrow (e.g. to buy a new car) on condition that you pay it back. lifetime mortgage – a type of equity release product for the over 60s, which allows you to release money by borrowing against the value of your home. There are no monthly repayments, instead the interest is added to the loan and the whole amount is repaid when you die or move into long-term care, usually from the sale of the house. This means more interest will build up than with a conventional mortgage. mortgage – a loan to help you buy property on condition that the company giving you the loan has certain rights, including the right to sell the property if you don’t pay back the loan. net – the amount after deductions (such as tax or fees) are made. net interest rate – the rate payable after the lower rate of income tax is deducted. (NB the rate of tax may vary, so a net rate is usually only given as an example.) nominal annual rate – the rate of interest that would apply if the interest were not added each year and if there were no inflation. overdraft – borrowings from your current account. overpayment – higher or extra mortgage payments that you make (usually to pay off your loan or mortgage early). p.a. – ‘per annum’, which means ‘each year’. payment holiday – a period of one or more months when you don’t make repayments on your loan or mortgage, although interest continues to accrue during that time. PIN – Personal Identification Number. This is the four-digit number that you enter into a cash machine when you want to take out cash, and that you use when you pay with your chip and PIN card. Never give this number to anyone, or write it down. rate – the percentage interest rate charged by a lender. remortgage – replacing a mortgage with a new one (from your existing or a different lender), without moving home. You use the money you borrow for the new mortgage to repay the old one. repayment method – the means by which a mortgage is repaid. The two main repayment methods are ‘interest only’ and ‘repayment’. repayment mortgage – a loan where you pay back some of the capital as well as interest each month. The amount you owe is gradually reduced. return – the profit you get, for example, when you invest money. share – a unit of ownership in a company. share certificate – shows the amount of ownership. share dealing – the process of buying and selling shares. standing order – a method of making regular payments directly from your bank account. It’s a fixed sum and you tell your bank when to start and stop paying it. stock – another term for share. transaction – each time you pay money into or take money out of your account, it’s called a transaction. unarranged borrowing – an overdraft that is higher than your bank or building society has agreed to. uncleared balance – the amount of money in your account including all the uncleared items in your account and any items paid in during the day. underpayment – a loan or mortgage payment that is less than the amount that you should normally pay for that month. variable-rate interest – the interest rate that you pay on your loan or mortgage and that rises and falls roughly in line with a stated index, such as the base rate set by the Bank of England. (NatWest , 2006, available on http://www.natwest.co.uk/glossary.htm/>)