sales performance resulting from changing work schedules, sales promotions, and similar influences that affected individual results. It also took some vigilance to ensure that the records needed for the study were kept in a consistent and consci- entious manner in each store. According to the researchers, however, these prob- lems were not great in relation to the usefulness of the study results. “The evidence that the training program had a measurable effect on sales was certainly more convincing in demonstrating the value of the program than would be merely the opinions of participants that the training was worthwhile.” 54
LINKING WORKER BELIEFS TO INCREASED PRODUCTIVITY
ETHICAL DILEMMA
Survey Feedback: Nice or Necessary?
Is it unethical to ask employees for their opinions, attitudes, values, or beliefs on an attitude survey and then subse- quently not give them any feedback about the results? We know that sur- vey results that are not fed back to
employees are unlikely to be translated into action strategies, and that it is poor management practice to fail to provide feedback.58 Is it unethical as well?
(Hint: See the definition of ethical de- cision making in Chapter 1.)
equipment, information, budget, staff); and then they allow employees to pave their own paths. The best managers don’t define the steps for their employees or legislate style.
3. Focus on strengths. Rather than identifying workers’ weaknesses and at- tempting to fix them, where the gains will be short-lived, managers focus on strengths. They identify and reinforce strengths, and then figure out where workers’ strengths will serve the company best. 57
4. Find the right fit. According to Gallup’s Coffman, “Talent never becomes ‘talented’ without being given a role for it to shine.” The best managers continually encourage their employees to look in the mirror and assess them- selves in order to find the kind of work that will bring out their best talents.
IMPLICATIONS FOR MANAGEMENT PRACTICE
How can such substantial gains in productivity, quality, and profits as we have described in this chapter occur? They happen because high- performance management practices provide a number of sources for enhanced organiza- tional performance:59
1. People work harder because of the increased involvement and commitment that comes from having more control and say in their work. Managers who adopt democratic leadership styles influence employees’ perceptions of personal con- trol over their work.
2. People work smarter because they are en- couraged to build skills and competence.
Managers have considerable influence over the opportunities for professional growth and development of their employees.
3. Finally, people work more responsibly be- cause more responsibility is placed in the
hands of employees farther down in the organization. Again, managers who delegate responsibility appropriately can foster such feelings of responsibil- ity on the part of their subordinates.
These practices work not because of some mystical process, but because they are grounded in sound social science prin- ciples that are supported by a great deal of evidence. Managers should use them to create win-win scenarios for themselves and for their people.
SUMMARY
The overall theme of this chapter is that HR measurement is valuable to the extent that it improves vital decisions about talent and how it is organized. To have genuine strategic impact, HR measures must be embedded within logical frameworks that drive sound strategic decisions about talent. Talent refers to the potential and realized capacities of individuals and groups and how they are organized, including those within the organization and those who might join the organization.
As an organizing framework, we presented the LAMP model, where the let- ters LAMP stand for logic, analytics, measures, and process. Logic is the “story”
that connects the numbers. Analytics transforms HR logic and measures into rigorous, relevant insights that enable researchers and managers to draw correct conclusions from data. Whereas statistics and research design are analytical strategies for drawing correct conclusions from data, measures comprise the numbers that populate the statistical formulas. Process is the final element of the LAMP framework. It calls attention to the fact that decisions and behavior unfold within a complex social system and that effective measurement systems must fit within a change-management process that begins by influencing key decision makers. The purpose of the process phase is to create actionable insights that lead to genuine strategic change.
Payoffs from determining the cost of employee behaviors lie in being able to demonstrate a financial gain from the wise application of human resource management methods. The remainder of the chapter used the LAMP frame- work to present both hypothetical and actual company examples of such mea- surement in the areas of employee attitudes, absenteeism, turnover, work-life programs, and training.
LAMP
behavior costing direct measures indirect measures controllable costs uncontrollable costs attitudes
job satisfaction
organizational commitment absenteeism
turnover
work-life program return on investment indirect measures of training
outcomes criteria
transfer of trained skills break-even values control group design pretest–posttest only design direct measures of training
outcomes
KEY TERMS
DISCUSSION QUESTIONS
1–1 What are the key elements of the LAMP model? What does each contribute?
1–2 Given the positive financial returns from high-performance work practices, why don’t more firms implement them?
Questions
1. What figure will Cal Jenson report to Fred Donofrio for the amount that absentee- ism cost ONO last year?
2. Is absenteeism a serious problem at ONO? Why or why not?
3. What recommendations for action could Cal Jenson make to Fred Donofrio?
APPLYING YOUR KNOWLEDGE
Absenteeism at ONO Inc.
ONO Inc. is an auto-supply company with 11 employees. In addition, there are two su- pervisors and Fred Donofrio, the owner and general manager. Last year, ONO did $5 million in business and earned $250,000 in profits ($375,000 before taxes). The auto- supply business is extremely competitive, and owners must constantly be on the look- out for ways to reduce costs to remain profitable.
Employee salaries at ONO average $21.00 an hour, and benefits add another 33 per- cent to these labor costs. The two supervisors earn an average of $28.00 an hour, with a similar level (percentage) of benefits. Employees receive two weeks of vacation each year and 12 days of paid sick leave.
Over the last two years, Fred Donofrio has noted an increasing rate of absenteeism among his 11 employees. (There seems to be no similar problem with the two supervi- sors.) Last week, he asked Cal Jenson, his most senior supervisor, to go through the re- cords from last year and determine how much absenteeism had cost ONO. Further, he asked Cal to make any recommendations to him that seemed appropriate depending on the magnitude of the problem.
Cal determined that ONO lost a total of 539 employee labor-hours (67.375 days) to absenteeism last year. (This figure did not, of course, include vacation time.) Further, he estimated that he and the other supervisor together averaged 1.5 hours in lost time whenever an employee was absent for a day. This time was spent dealing with the extra problems (rescheduling work, filling in for missing workers, etc.) that an absence cre- ated. On several occasions last year, ONO was so short of help that temporary workers had to be hired or present employees had to work overtime. Cal determined that the ad- ditional costs of overtime and outside help last year totaled $3,100. Cal is now in the process of preparing his report to Fred Donofrio.
Case 2–1
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Questions This Chapter Will Help Managers Answer
1. How are employment practices affected by the civil rights laws and
Supreme Court interpretations of those laws?
2. What should be the components of an effective policy to prevent sexual
harassment?
3. What obligations does the Family and Medical Leave Act impose on
employers? What rights does it grant to employees?
4. When a company is in the process of downsizing, what strategies can it
use to avoid complaints of age discrimination?
5. What should senior management do to ensure that job applicants or
employees with disabilities receive “reasonable accommodation”?