The Role of Strategic Groups in Understanding Strategic Human Resource Management

The current issue and full text archive of this journal is available at www. emeraldinsight. com/0048-3486. htm The role of strategic groups in understanding strategic human resource management Judie M. Gannon Oxford School of Hospitality Management, Faculty of Business, Oxford Brookes University, Oxford, UK The role of strategic groups 513 Liz Doherty Business School, Shef? eld Hallam University, Shef? eld, UK, and Angela Roper School of Hospitality & Tourism Management, University of Surrey, Guildford, UK AbstractPurpose – This article aims to explore how understanding the challenges faced by companies’ attempts to create competitive advantage through their human resources and HRM practices can be enhanced by insights into the concept of strategic groups within industries. Based within the international hotel industry, this study identi? es how strategic groups emerge in the analysis of HRM practices and approaches. It sheds light on the value of strategic groups as a way of readdressing the focus on ? rm and industry level analyses.Design/methodology/approach – Senior human resource executives and their teams across eight international hotel companies (IHCs) were interviewed in corporate and regional headquarters, with observations and the collection of company documentation complementing the interviews. Findings – The ? ndings demonstrate that strategic groups emerge from analysis of the HRM practices and strategies used to develop hotel general managers (HGMs) as strategic human resources in the international hotel industry. The value of understanding industry structures and dynamics and intermediary levels of analysis are apparent where speci? industries place occupational constraints on their managerial resources and limit the range of strategies and expansion modes companies can adopt. Research limitations/implications – This study indicates that further research on strategic groups will enhance the theoretical underst anding of strategic human resource management and speci? cally the forces that act to constrain the achievement of competitive advantage through human resources. A limitation of this study is the dependence on the human resource divisions’ perspectives on realising international expansion ambitions in the hotel industry.Practical implications – This study has implications for companies’ engagement with their executives’ perceptions of opportunities and threats, and suggests companies will struggle to achieve competitive advantage where such perceptions are consistent with their competitors. Originality/value – Developments in strategic human resource management have relied on the conceptual and theoretical developments in strategic management, however, an understanding of the impact of strategic groups and their shaping of SHRM has not been previously explored.Keywords Strategic groups, Strategic human resources, Strategic human resource management , International human resource management, Hotel and catering industry, International business Paper type Research paper The authors would like to express their thanks to the organisations who participated in the research and the reviewers and Editors who provided insightful and excellent feedback on early drafts. Personnel Review Vol. 41 No. 4, 2012 pp. 513-546 q Emerald Group Publishing Limited 0048-3486 DOI 10. 1108/00483481211229401 PR 41,4 14 Introduction Most developments in strategic human resource management (SHRM) and international human resource management (IHRM) have drawn heavily on the strategic management literature (Becker and Huselid, 2006; Schuler and Jackson, 2007). Some of the earliest models associated with SHRM (such as Fombrun et al. , 1984; Beer et al. , 1984; Hendry and Pettigrew, 1986 and Guest’s (1989) model) provide insights into how leading HRM thinkers have approached the strategic dimensions of HRM. Such insights have focused on the links or ? be tween strategy and HRM, environmental analyses as the basis for strategic management informing (and in some cases informed by) HRM, and borrowing concepts and theories with their origins in the strategic management literature, such as organisational and product life cycles, and competitive strategies (Schuler and Jackson, 1987; Sanz-Valle et al. , 1999; Miles and Snow, 1984). Despite the advances made in both areas there has been minimal consideration of the ways that strategic groups, not only industries and ? rms, in? ence HRM strategies and practices in the pursuit of competitive advantage (Boxall, 2003). Strategic group research identi? es how groups of ? rms engage in similar strategies in order to compete effectively within industries and shape industry structure and competition. Panagiotou (2006 p. 440) de? nes strategic groups as: [. . . ] those groups of ? rms within an industry, which are characterised by similarities in their structure and competitive beliefs as well as t heir tendency to follow similar strategies along key strategic dimensions in a speci? operating environment. The performance differences between strategic groups are the focus for much of this research, but mobility between groups and the structural dimensions of industries have also received attention (Ferguson et al. , 2000; Leask and Parker, 2006; Porter, 1980; Reger and Huff, 1993). As such strategic group research has developed as a central research theme in strategic management. One of the most notable aspects of strategic groups research is that it highlights and reinforces the importance of particular industry contexts.This is an important consideration for the development of SHRM research as there is now growing recognition of the value of industry and sector speci? c SHRM research where the nuances and structural dimensions of industries are emphasized (Boselie et al. , 2009; Paauwe, 2008; Paauwe and Boselie, 2008; Tyson and Parry, 2008). The aim of this study is to explor e how the strategic group concept can inform SHRM approaches. Speci? cally it sets out to identify how strategic groups can help us understand why companies struggle to achieve sustainable competitive advantage.This aim is achieved by initially investigating the strategic group literature and evaluating where it adds insight and value to the SHRM approaches literature. Thereafter the ? ndings from an in-depth empirical study of the HRM practices and strategies deployed across a global industry are used to highlight the role of strategic groups in constraining companies’ capacities to differentiate their SHRM approaches and practices. Accordingly this article also satis? s the demand for more sector led SHRM research (Paauwe, 2008; Paauwe and Boselie, 2008; Tyson and Parry, 2008). This article unfolds as follows. Initially an evaluation of the strategic group literature is provided followed by an analysis of the contemporary debates in SHRM (Boxall and Purcell, 2000, 2003, 200 8; Boselie et al. , 2002, 2003). The limitations of the SHRM literature are re? ected on in light of the strategic group literature and the potential contribution this ? eld towards a more nuanced understanding of SIHRM approaches and practices.The research design for the study is subsequently outlined alongside an overview of the context of the research, the global hotel sector. The qualitative data analysis is then considered with the HRM practices and approaches which are found to be common across the whole industry, similar across particular strategic groups and distinctive to speci? c companies explored sequentially. The implications of these various layers of HRM practices and strategies, and speci? cally the strategic group dimension, are then discussed in relation to the extant research. Of speci? c note is the way such ? dings reinforce the challenges companies face when pursuing competitive advantage through human resources and how the national, industry and strategic grou p pressures for assimilation limit opportunities to develop idiosyncratic and integrated HRM interventions and strategic human resources. Literature review: building bridges between strategic groups and SHRM approaches Strategic groups The strategic group concept emerged within strategic management as an attempt to better understand the competitive backdrop and demands faced by companies operating in an industry (McGee et al. 1995; Porter, 1980; Short et al. , 2007). Strategic management analysis has typically taken place at the level of the ? rm and the industry, and has omitted the interface of ? rm and industry competitor behaviour. Originating from the broader ? eld of industrial organization economics in the 1970s, strategic groups were identi? ed as clusters of companies within industries (Porter, 1980). Such divisions arise because industries are not collections of heterogeneous companies but subsets of ? ms separated by mobility barriers limiting movement between groups (Fer guson et al. , 2000; McGee et al. , 1995). Strategic group research has facilitated a better understanding of how group structure can shape rivalry and ultimately performance, as well as group identities and reputations. It has also illustrated how strategic group reputations serve to reinforce mobility barriers to other industry competitors (Dranove et al. , 1998; Ferguson et al. , 2000; Leask and Parker, 2006; Peteraf and Shanley, 1997).The analysis of the business environment as an objective reality, achieved classically through cluster or factor analysis of company data (Reger and Huff, 1993), drives most investigations in this area. However, Panagiotou (2006, p. 441) summarises the problems of this prescriptive approach as leading to: [. . . ] a preoccupation by managers that strategic management is all about prescribing strategies for positioning a business in a particular industry structure, having ? rst carried out a thorough economic analysis based on the implicit notion th at industry structures are relatively stable and easily identi? ble. The role of strategic groups 515 More recently a cognitive approach to strategic group research has emerged based on the argument that managers’ simpli? cation of their complex competitive environments and perceptions of similarities and differences among their rivals will shape strategic decision-making (Panagiotou, 2006, 2007; Reger and Huff, 1993). Such managerial insights into competitive groupings offer clearer conceptions of the way decision-makers perceive their own organisations and their rivals and therefore how these determine and implement strategies.These arguments suggest that strategists’ PR 41,4 516 understand (and approach) their competitive environments in similar ways, and are related to the ideas of institutional assimilation and isomorphism (DiMaggio and Powell, 1983; Powell and DiMaggio, 1991). Therefore, the capacity of ? rms to pursue distinctive practices for competitive advant age may be limited by constraints, such as organisational inertia and forms of isomorphism (Reger and Huff, 1993; Boon et al. , 2009). Strategic groups are then another important aspect of the structural dimensions which foster this organisational sluggishness.These are critical insights where the pursuit of competitive advantage through human resources, HRM practices and strategies has gained substantial support in recent years (Becker and Huselid, 2006; Boxall, 2003). However, this quest for distinctive or idiosyncratic HRM practices and strategies to attain competitive advantage needs to be resolved against the pressures to conform and achieve social legitimacy within sectors. The next section evaluates the contemporary SHRM approaches and highlights where the strategic group literature contributes to their enhanced understanding.The strategic HRM approaches Three main SHRM approaches have emerged as the keystone for understanding and achieving sustained corporate success through human resources (Purcell, 1999, 2001; Boxall and Purcell, 2003, 2008). While the opportunities for simultaneously enacting these approaches are now well-rehearsed it is useful to revisit them brie? y as part of developing the theoretical connection with the strategic group literature. The best practice SHRM approach encourages companies to adopt sophisticated or â€Å"high performance† practices across their human resources in order to achieve competitive advantage (Pfeffer, 1998; Huselid, 1995).Considerable criticism of the best practice SHRM approach occurs in relation to what actually represents â€Å"sophisticated† HRM practices and the empirical basis on which these practices are suggested (Marchington and Grugulis, 2000; Boxall and Purcell, 2003, 2008). Furthermore, the conventional best practice SHRM approach suggests that these superior HRM practices should be adopted regardless of different industrial and national boundaries (Marchington and Grugulis, 2000; B oxall and Purcell, 2003, 2008).Recent evaluations of the â€Å"best practice† SHRM approach have emerged recognising that within industries there may be certain HRM practices and approaches which are obligatory (Boxall and Purcell, 2003, 2008). The â€Å"table stake† concept suggests there are established (HRM) practices adopted by all businesses in an industry which serve to legitimise their position in that industry. This concept has thus been recognised as an adaptation of the â€Å"best practice† SHRM approach (Boon et al. , 2009; Bjorkman, 2006; Boxall and Purcell, 2003; Paauwe and Boselie, 2003).The â€Å"table stake† version of best practice SHRM approach is based on the institutional assimilation literature where organisations struggle to distinguish themselves from their industry associates while simultaneously achieving legitimacy (institutional ? t) in their sector (DiMaggio and Powell, 1983; Powell and DiMaggio, 1991; Oliver, 1997). Isomorphis m is the process which constrains organisations’ attempts to differentiate themselves within the same institutional context (DiMaggio and Powell, 1983).Isomorphism emerges in two broad variations; competitive isomorphism where market pressures and performance targets are emphasised and institutional isomorphism where institutional factors associated with socio-cultural, technological and economic parameters are highlighted. The adoption of best practice SHRM approach across an international setting has also been roundly critiqued (Brewster, 1999, 2006; Sparrow et al. , 2004) due to the ingrained national institutional and cultural conventions, which are seen to regulate the value of various high performance HRM practices in other countries (Brewster, 1991, 2006; Sorge, 2004).However, this does not mean that across a country all industries have the same HRM practices. Much of the IHRM literature could be seen as disproportionately focused on the parent and host country culture s and systems in light of the evidence on SHRM approaches and practices in hospitals, local government and hotels (Boselie et al. , 2002, 2003). Such studies indicate that institutional and competitive isomorphisms differ across industry contexts creating distinct table stake HRM practices in different industries within the same country (Boon et al. , 2009; DiMaggio and Powell, 1983).Furthermore, such evidence recognizes that national institutional dimensions may have less of an impact than competitive institutional dimensions on some industries and their resulting people management practices. This level of industry interplay on the best practice approach is valuable but in light of the strategic group insights it is clear that companies do not compete directly with every other company in their industry. Instead they are likely to have particularly close rivals whose practices, products, managers, innovations and initiatives will be of speci? interest to them (Panagiotou, 2006; Pete raf and Shanley, 1997). As such there may be another layer of consistency and similarity in HRM practices due to the close rivalry of strategic groups, in addition to those identi? ed by the â€Å"table stake† version of the best practice SHRM approach across an industry. The â€Å"best-? t† SHRM approach suggests a ? rm’s market position and strategies drive and shape its HRM policies and practices. Within the â€Å"best ? t† SHRM approach a range of theories have emerged from those that more simplistically link speci? strategy choices to HRM practices and policies (Delery and Doty, 1996; Miles and Snow, 1984; Schuler and Jackson, 1987) to more complex models (Fombrun et al. , 1984; Hendry and Pettigrew, 1986) which envision a range of corporate characteristics (strategies, positions, portfolio characteristics) determining people management practices. Within the IHRM area, much of the research has also focused on the in? uential nature of national differ ences as well as strategic models (Perlmutter, 1969; Bartlett and Ghoshal, 1989, 2000; Edwards et al. , 1996).For example: the models of international orientation (Perlmutter, 1969; Heenan and Perlmutter, 1979); product life-cycle phases (Adler and Ghadar, 1990); and international responsiveness versus integration (Bartlett and Ghoshal, 1989, 2000; Edwards et al. , 1996) are all based on strategic choice arguments derived from the strategic management ? eld. The main thrust of the strategic dimension to IHRM has revolved around the question of whether HRM practices are determined by corporate or business strategies and customised or standardised across national boundaries with many authors providing detailed analyses of the contingency of speci? factors (Boselie et al. , 2002, 2003; Coller and Marginson, 1998; Easterby-Smith et al. , 1995; Ferner, 1994, 1997; Ferner and Quintanilla, 1998; Hannon et al. , 1995; Newman and Nollen, 1996; Rosenzweig and Nohria, 1994; Rosenzweig, 2006; T hompson et al. , 1998). The weaknesses of the â€Å"best ? t† SHRM approach are its distorted attention on the external context as determining strategies and practices based on market positioning, cultural and institutional factors; and its inability to secure competitive advantage where several companies within the same sector pursue similar strategies and marketThe role of strategic groups 517 PR 41,4 518 positions (Boxall and Purcell, 2003, 2008; Kamoche, 2001; Wright and Snell, 1998). Such criticisms are similar to those voiced by contemporary strategic management researchers on the objective and prescriptive versions of strategic management being the primary in? uence on strategic thinking and decision-making at the expense of managers’ and executives perceptions of positions and rivalries (Reger and Huff, 1993).Indeed Panagiotou’s (2006, 2007) research on executives’ perceptions, as opposed to the economic analysis of the competitive terrains, compe titor strategies and industry dynamics shaping strategic groups, highlights that executives whose ? rms belong to the same strategic groups react to events and market factors in similar ways. This suggests, that not only are companies constrained by the suggested strategies and market positions they develop, but that there are limitations to the options they can take to distinguish themselves because of the added level of similarity strategic groups create.Finally, the resource based view (RBV) SHRM approach has been proffered as an alternative to the best practice and best-? t approaches due its internal focus based on creating competitive advantage through the leverage of valuable, rare, inimitable, non-substitutable and rent achieving (human) resources (Morris et al. , 2006; Wright et al. , 1994, 2004). The empirical research supporting the RBV SHRM approach (Boxall and Steeneveld, 1999; Leonard-Barton, 1995; Marchington et al. , 2003) clearly highlights that human resources can ful? l the criteria of resources which deliver competitive advantage.The most valuable human resources are those identi? ed as the â€Å"strategic human resources† or â€Å"rainmakers† who ful? l the RBV criteria of adding exponential supplementary value to companies. By developing HRM practices, which are idiosyncratic and interdependent, the RBV approach argues that companies can capitalise on their proprietary knowledge and transfer it creatively and effectively across its workforce. Several authors (Bonache and Fernandez, 1999; Harvey et al. , 1999, 2000; Taylor et al. , 1996) have adopted this approach and identi? d that capitalising on internal resources to achieve competitive advantage is quite different from the best-? t SHRM approach because it surmounts the external views of the best-? t approach. This view is neatly outlined in the frustrations of Cappelli and Singh (1992 in Wright et al. , 2004 p. 11): [. . . ] many within strategy have implicitly assumed t hat it is easier to rearrange complementary assets/resources given a choice of strategy than it is to rearrange strategy given a set of assets/resources, even though the empirical research seems to imply the opposite.The RBV SHRM approach offers speci? c insights into the value of internal resources in securing successful international operations (Bonache and Fernandez, 1999; Harvey et al. , 2000). Speci? cally particular groups of human resources are seen to have an honoured position within companies where they transfer tacit knowledge to new markets and provide sustainable competitive advantage (Prahalad and Hamel, 1990; Scullion and Starkey, 2000). Taylor et al. ’s (1996) study used the RBV approach to identify the critical role of HRM competence within international ? ms, the part senior management play in identifying the company’s potential to develop HRM competence and the different groups of human resources who constitute ? rm strategic human resources. However, the weaknesses of this SHRM approach are its omission to clearly depict the interplay between internal resources and environmental factors, and the recurring evidence that ? rms struggle with the challenges of their competitive sector to achieve distinctiveness and success through their human resources and HRM practices (Boxall and Purcell, 2003, 2008). Once again the strategic groups literature provides speci? insights here in querying whether the pursuit of competitive advantage through the leveraging of the ? rm’s distinctive resources is restrained by the in? uence of their closest strategic group (Panagiotou, 2006, 2007). Clearly each of the SHRM approaches (table stake best practice, best-? t and RBV) have some resonance and these perspectives are summarised in Table I in terms of their initial focus and the levels of context where their attention is directed. There is an overall tendency across the SHRM literature for tensions, contradictions and imbalance (Boselie et al. 2009) as evidenced in the overly prescriptive best practice approach, the highly contingent best ? t approach (focusing on speci? c market or national context factors) and the RBV’s spotlight on the internal resources of the organisation. Individual adoption of these approaches is unlikely to provide a meaningful depiction of how companies might pursue competitive advantage via their human resources or HRM practices. Instead it is argued that companies can use a combined and simultaneous version of the three SHRM approaches in an attempt to balance the external and internal perspectives adopted by the best-? and RBV approaches, while also recognising the important in? uence industry isomorphism (table stakes) has on the creation of a set of HRM practices (Boxall and Purcell, 2003, 2008). Even where such a combined and simultaneous model of SHRM has been advocated (Boxall and Purcell, 2003, 2008) there appears insuf? cient understanding of, and insight into, the industry or sectoral level of analysis (Boselie et al. , 2009; Boxall, 2003; Paauwe, 2008; Paauwe and Boselie, 2008). By exploring SHRM practices and approaches across an industry, rather than across speci? national or company contexts, a better understanding of the internal and external challenges faced by competing organisations to achieving distinctive HRM strategies and practices becomes manifest. Alongside this evaluation of the SHRM approaches, the strategic groups literature highlights that these clusters of close rivals may compound the SIHRM approaches Primary focus Level Company/? rm The role of strategic groups 519 Resource based view (RBV) Competitive advantage achieved through developing resources Internal which are Valuable, Rare, Inimitable, Non-substitutable and Rent achieving Best ? Based on crafting HRM practices tied to strategic management External models – typically through strategic analyses tools of market position Based on aligning HRM practices to different in ternational and domestic cultural and institutional contexts and company demand for standardisation Best practice Originally identi? ed as sophisticated practices capable of External achieving competitive advantage Now associated with HRM practices which are â€Å"table stakes† essential for operating with social legitimacy within an industry Competitive market National contexts and competitive market Industry Table I.The initial focus of SIHRM approaches PR 41,4 challenges ? rms already face in realising differentiation through their human resources and HRM practices. Indeed where industry analyses highlight the importance of conformance of industry members, to particular HRM practices and systems, strategic groups suggest another layer of orthodoxy among closest rivals which limit the pursuit of distinctive competitive advantage by ? rms. Research design Analysis of strategic groups requires an industry focus and this research was undertaken within the context of the intern ational hotel sector.This sector has been identi? ed as international by nature (Litteljohn, 2003; Litteljohn et al. , 2007) with companies achieving growth through a range of market entry modes, typically engaging with different equity partners (Whitla et al. , 2007). Managing portfolios of hotels with diverse ownership arrangements (such as the asset light options of management contracts, franchises and part equity agreements) has created challenges for international hotel companies (IHCs) (Beals, 2006; Eyster, 1997; Gannon et al. , 2010; Guilding, 2006).Traditionally hotel general managers (HGMs) have been seen as strategic human resources (Boxall and Steeneveld, 1999; Marchington et al. , 2003) responsible for creating pro? table hotel units through their leadership and operational expertise in the hotel industry (Forte, 1986; Kriegl, 2000; Ladkin and Juwaheer, 2000). However, the asset light market entry modes developed more recently as a result of IHC portfolio expansion have resulted in managers and executives experiencing different challenges and requiring enhanced skills sets.At the heart of this study was the aim to explore how IHCs have developed IHRM strategies and practices to manage their international managerial resources within the broader context of the sector’s competitive forces, growing industry concentration and in the presence of strategic groups (Curry et al. , 2001; Litteljohn, 1999; Roper, 1995). Any attempt to capture people management strategies and practices across an industry, as well as at the ? rm level, involves the adoption of a comprehensive sample of organisations. This study used an industry de? nition of global operations based on companies operating hotels across ? e out of the six economically viable continents, as a purposive sample technique (Saunders et al. , 2000). This research stage comprised substantial secondary data collection on the broader international hotel industry with information on service levels, ownership modes, brands, portfolios and geographical penetration and the information is captured in Table II. Only nine companies met these global criteria and eight of these nine companies granted access to their senior human resource executives (typically Vice Presidents of Human Resources) and administrative teams, and HR systems and materials.The ? eldwork interviews took place at the European corporate headquarters, regional of? ces and in hotel units for the eight companies. Interviews with the senior HR executives for each of the eight companies form the main part of the data. These interviews lasted around four hours on average. In addition, time was also spent with administrative teams, reading documentation and observing meetings. A checklist was developed to complement the interview questions and data, and to systemise the collection of company documentation, observations and interactions with the administrative teams (Robson, 2002).Documentation included HRM policies, pe rformance appraisal forms, training manuals, organisational charts, company communications, job descriptions, succession plans and demonstrations and hard copies of HR databases. The interview 520 International hotel companies Suggested strategy and methods of growth Differentiation strategies – based on the power of the company’s hotel brand name. Expansion in prime city centre and resort locations and the development of hotel clusters in countries or regions achieved through management contracts and joint ventures Various strategies deployed at the different market levels.Budget brands operate on a no frills strategy. International luxury properties follow a differentiation (premium price) strategy. One third of properties are owned and two-thirds are management contract arrangements. Growth through management contracting, franchising or marketing agreements and some ownership Focused differentiation strategy based on distinctive design and architectural features ass ociated with properties and attention to detail service style. Grows solely by securing management contract agreements with select investors Differentiation strategy based on developing modern and ef? ient ? rst class hotels. Growth achieved through management contracting, rather than ownership, and a global partnership with one of America’s largest international hotel corporations Operates at different market levels – particularly concerned with distinctiveness and value for money and therefore a broad hybrid strategy is identi? ed Mixed type of operation is used across portfolio; approximately 46 per cent owned, 21 per cent leased, 22. 5 per cent management contracts and 10. 5 per cent franchised (continued) 150 ? Prestige international brand National UK mid-market brand 48 Number of hotelsBrands Number of countries Anglo-American Premium Britbuyer 900 Nine brands at international and domestic levels: Upscale Mid market Budget 50 Contractman International 200 Four lu xury or upscale brands 35 Euroalliance One upscale brand 16 50 * Euromultigrow 2,500 ? Seventeen brands split into: Upscale and midscale Economy and budget Leisure hotels 73 521 The role of strategic groups Table II. Pro? les of global hotel companies in sample PR 41,4 522 International hotel companies 2,300 ? Five brands: two at mid market Prestige brand Budget brand Holiday resorts 63 FranchiseKing GlobalallianceUSBonusbranda 700 Seven brands Two at both mid market and budget levels Prestige brand Suites Holiday resorts Prestige brand Mid-market brand – North America 63 35 USmixedeconomy Note: a This company did not participate in the ? nal stages of the research Table II. Number of hotels Brands Number of countries Suggested strategy and methods of growth Hybrid strategy based on presence across a range of market sectors but competitively priced in each sector. Company documentation states the aim as â€Å"To be the preferred hotel system, hotel management company, and lo dging franchise in the world.To build on the strength of the FranchiseKing name utilising quality and consistency as the vehicle to enhance it’s perceived ‘value for money’ position in the middle market. † Focused differentiation strategy based on international exposure and expertise in the luxury hotel market. Growth through management contracting, franchising or marketing agreements and some ownership Deploys several strategies including a hybrid strategy for its domestic units and a differentiation (with premium price) strategy for most of its international properties at the prestige level.Growth through management contracting and franchising, with limited ownership Adopts a variety of strategies including a hybrid strategy for its domestic units and a differentiation (with premium price) strategy for most of its international properties. Growth through management contracting some ownership and franchising 190 Prestige brand Mid-market brand – Nor th America 70 460 transcripts, ? eldwork notes and documentation allowed cases to be written for each company which were sense-checked by industry informants and against the research team’s notes and observations.Access was granted to the eight companies on the basis of offering con? dentiality to participants and organisations. Each company was protected through the allocation of pseudonyms and all data and notes collected removed company names and trademarks to provide con? dentiality. This is in keeping with the widely acknowledged dif? culties of gaining access within this industry (Litteljohn et al. , 2007; Ropeter and Kleiner, 1997). The cases built on the interview transcripts, observations and company documentation data meant that ualitative analysis was achieved through the tools and computer aided techniques recommended by key authors (Miles and Huberman, 1994; Silverman, 1997, 1999). The process of initial coding identi? ed HRM practices, management criteria and co mpany strategies and characteristics. Descriptive coding was then used to highlight speci? c activities and relationships between HRM practices and approaches, and company characteristics. Further interpretive coding and analytic coding were highlighted through the themes presented by the respondents and the theoretical relationships arising from the data and initial coding (Silverman, 1997, 1999).Of particular importance were the themes of similar and distinctive HRM practices deployed by the companies, strategic groups and across the sample. Results Across the sample of eight IHCs evidence of common HRM interventions deployed included: a reliance on strong internal labour markets for unit management positions; training programmes with universal components; the use of performance appraisal as a mechanism for monitoring and evaluating human resources talent, the deployment of speci? c contractual agreements and conventions; the recurrent use of corporate communications channels; and speci? HRM responses to cultural and international challenges. The shared aims of these practices indicated that the IHCs were adopting the table stake version of the best practice SHRM approach across their international portfolios (Boxall and Purcell, 2003, 2008; Boselie et al. , 2003, 2009). The next stage of data examination involved the identi? cation of company speci? c HRM practices based on the best ? t and RBV SHRM approaches. However, subsequent analysis of the qualitative data began to identify another layer of similar HRM interventions centred on the appearance of strategic groups within the sample.There appeared to be similarities between the companies based on strategic variables such as parent company ownership, the scope of the hotels organisations’ activities (levels of internationalisation, geographical coverage, and market segments); resource commitments (including size, brands and market entry modes); and centric and transnational orientations. As a resul t the sample was demarcated into three strategic groups. These are labelled the Multi-branders, Mixed Portfolio Purchasers and Prestige Operators.Table III summarises the strategic similarities and differences between the three groups and their IHC members. Patterns of HRM interventions across the three strategic groups are apparent from the data supplied by the executives, their teams and the documentation. These patterns focus around six areas: The role of strategic groups 523 PR 41,4 Similarities Differences 524 Table III. International hotel company strategic groups Strategic Group 1 – The Multi-branders (two companies) National cultural origins FranchiseKing and Parent companies – related horizontally Euromultigrow diversi? d Mid-market brand dominates in Large size – 2,000 ? hotels one company while distinct High levels of internationalisation but brands used for different market strong domestic base (French and USA) segments by other Multiple brands (luxu ry to budget) Dif? culties aligning parent company, brand One company uses more names and operations franchising Hybrid strategies Range of market entry modes Ethnocentric orientation Global organisation Strategic Group 2 – The Mixed Portfolio Purchasers (two companies) Britbuyer and Similar size (between 400 and 1,000 hotels) Diversi? ation of parent companies is different USmixedeconomy Mid-position in internationalisation index Strong domestic presence and distinctive One company has more international operations ownership/partial ownership of Range of market entry modes hotels Acquisitive growth of European prestige brands One company has much smaller Brands offered at similar market levels Challenges of aligning disparate domestic budget brand domestic interests and international portfolios, corporate strategies and new acquisitions Ethnocentric orientation but with some geocentric aspirations Multinational rganisation Strategic Group 3 – The Prestige Operators (f our companies) Two companies have separate Parent companies – related diversi? ed Anglo-American domestic operations Similar size (between 50 and 202 hotels) Premium Similar levels of low internationalisation Contractman Two companies have grown Focus on luxury, ? st class hotel market International through strategic partnerships (resort and business) Euroalliance Strategies broadly differentiation and Globalalliance One company uses a broader focused differentiation range of market entry modes Growth primarily through management contracting Broadly geocentric but with some aspects of ethnocentrism Transnational organisation (1) (2) (3) (4) (5) (6) the levels where HRM is focused; different views about management skills and transferability across brands; how international and domestic operations function; extent of owner in? ence and cultural differences; how and where managerial talent is found; and where speci? c career interventions emerge. Table IV captures some of the co mments from interviews across these six levels and the three strategic groups. The HRM interventions and features developed by the three strategic groups are outlined in Table V along with the strategic variables which distinguish the groups. Strategic group 1: Multi-branders The sheer size and scale of their multi-branded operations indicated parallels between the HRM approaches taken by the Multi-branders (see comments in Tables IV and V).Both companies boasted a critical mass of hotels in key countries or regions of the world resulting in more localised recruitment and development approaches. For example, they operated â€Å"UK only† management training schemes and then speci? c recruitment initiatives tailored to educational systems, notably the French training and German apprenticeship schemes. The size of these two companies also meant they allowed their distinct brands to develop individually which had apparently resulted in some speci? brand HRM practices. Both compan ies recognised there were few opportunities for managers to transfer between the different brands leading to bottlenecks in internal labour markets, where some brands grew more quickly and offered extensive transfer and promotion possibilities. The Multi-branders had attempted to deal with these issues in slightly different ways, though both now had structures, enabling moves between managerial levels across brands to achieve some overall parity across their company.In one company (Euromultigrow) there was a guide to the different positions within each brand to encourage internal brand transfers of human resources. This guide was based on extensive negotiations with managers across the company’s brands, although parent country nationals (PCNs) dominated among these managers and the company’s University was responsible for the roll-out training for this guide. Franchiseking had developed a competency-based HRM system designed to identify common areas of expertise across its brands and as one HR executive identi? d all managers with line responsibilities had to attend and use this framework. The competencies were developed in accordance with a HRM consultant ? rm and used existing and future â€Å"high potential† managers across the company’s portfolio to identify appropriate behaviours of successful managers. Competencies were heavily in? uenced by the company’s existing management team comprising mainly PCNs. The company then ran a series of training sessions for its senior managers so the competencies formed the basis for all selection, performance appraisal, promotion and training decisions and activities.These attempts to closely manage their large portfolios of standardised brands across geographically disparate locations meant the Multi-branders adopted an ethnocentric orientation to internationalisation with PCNs dominant in subsidiary management positions, which runs somewhat counter to their critical mass of units and attempts to localise too. The Multi-branders commented less extensively, compared with the members of the other two strategic groups, on the level of interference from property owners where management contracts were used.They argued this was probably because their highly standardised brands, even at full-service levels, meant owners knew what to expect, and they did not attempt to interfere in the day-to-day management of hotels. The selection of managers for managed properties was also less troublesome for the Multi-branders. In most cases executives could appoint whomever they wanted and The role of strategic groups 525 PR 41,4 526 The levels of focus for HRM Table IV.Responses from HR executives from the strategic groups Multibranders â€Å"Our area, regional human resource executives run national versions of our company University training and recruitment programmes to ? t with national vocational education. † Assistant HR director for Euromultigrow EAME â€Å"We have a critical mass of hotels in certain countries and have built real presence so we need to adopt some of their practices as long as they ? t now with our competences. † Corporate Training and Development Director FranchiseKing â€Å"In France, Germany, the UK and the Benelux and Scandinavian countries, where we have critical mass, they have some ? xibility for recruitment and training. It has been a bit of a struggle with our acquisition of M to get this right, though. † Britbuyer HR EAME director â€Å"Some areas, with more hotels, have a little bit more autonomy than others and we have them do their own management recruitment and training, based on our head-of? ce materials. † Vice President HR USmixedeconomy Mixed Portfolio Purchasers Prestige Operators â€Å"We run a graduate management programme to ensure we have our next crop of managers waiting in the wings. We also have an executive management programme which includes an MBA – both are designed to g et us the GMs of the future. Corporate Director of Human Resources Globalalliance â€Å"Our graduate management programme is being revitalised for next year and we’ll be targeting the brightest from the hotel schools in Holland and Switzerland for EAME. All our graduates must have language skills and meet speci? c knowledge requirements. † Anglo-American Premium Vice President of HRs â€Å"I don’t think graduate management schemes per se work. Instead we recruit graduates, mainly from Switzerland and the Dutch schools, into real jobs and although they’re a hotel resource, we (headquarters) monitor their progress and target them with speci? courses to try and bring them on. † HR Vice President Euroalliance (continued) Multibranders â€Å"We had to respect what was there. The predominant national culture of the newly acquired company) meant that we had a lot of communicating and educating to do within our company and within theirs. We moved managers within (names the acquired company) between units to give them a fresh start and many of them are still with us. It worked out well really. † Regional HR director USmixedeconomy Mixed Portfolio Purchasers Prestige Operators Views about management skills â€Å"No, not so many people transferred.It was and transferability across brands quite common between one brand and also quite common between (names two other company brands at the same market level) but not at all between the others. It was dif? cult, not good. Now we will have a stronger parent company from this new structure. † HR Vice President for Euromultigrow GMs skills needs â€Å"fall into four skill sets which†¦ one is managing myself based on the premise that if I can’t manage myself then I can’t really manage anybody else. Then managing others and then the third one is problem solving and decision making and the fourth one is pro-active achievement.Very dif? cult to measure, but the actu al achievement levels and the go for it and taking that extra risk, the entrepreneurial part. And then there is the languages and â€Å"We have been training them in the use of behavioural event interviewing to help them, â€Å"When we acquired company [M] there was cultural bit. † HR Vice President Euroalliance . . . to spot the competencies. This allows us a bit of a standoff basically because they to see where in the portfolio of brands they wanted to be acquired by somebody else†¦ It â€Å"It feels it is dif? ult to see where a young manager’s next move is in an international can move to† Corporate Training and didn’t help that the CEO of our company company without the right language skills Development Director FranchiseKing went ‘round their hotels saying ‘get rid of this’ or ‘do that’. Things have changed now, to allow widening of transfer options. †Anglo-American Premium Vice again. There’s more a ppreciation of what President of HRs [acquired company] does right on the international scene and we’re a lot more â€Å"There are core or critical parts to our open to learning from them.It’s now twobusiness; marketing and sales, managing way. † Britbuyer HR EAME director human resources, ? nancial management, creative decision –making and leadership. These need to be displayed across cultures across properties to make it as a GM. † Vice President HR Contractman International (continued) The role of strategic groups 527 Table IV. PR 41,4 528 How international and domestic operations function â€Å"For an international GM you need languages and international experience – that is why some managers from brands back home don’t make it. Vice President HR USmixedeconomy Table IV. Multibranders â€Å"Most of these potential GMs do tend still to be the same nationality as the company, but I don’t know why. We don’t necessarily want that, at all. † HR Vice President for Euromultigrow â€Å"All GMs are informed that the best way to read and become familiar with the (competency) guide is to read the English version ? rst – this is the authoritative version. † Corporate Training and Development Director FranchiseKing Mixed Portfolio Purchasers Prestige Operators â€Å"Why the four different parts of the world?Well each one has some strengths. I mean that States you take marketing and very different human resources. Asia you still have the luxury of being able to have a lot of employees and a far bigger budget because costs are lower. Japan because the way, the mentality of the Japanese market and customer is different, and Europe to do same thing but with a very tight budget because costs are so high. † Vice President HR EAME Contractman International â€Å"Our domestic brand managers aren’t our international mangers. There is no transfer, well ok I can think of one or two. You need international experience which creates a bit of a catch 22 – because it is the old thing of ‘you can’t get the job without the experience and you can’t get the experience without the job’. † Britbuyer HR EAME director â€Å"A future GM must have worked outside his or her home country before they can be promoted to this level. It is important for managers to have language skills not only to help them operate in particular locations but also because there are far more career opportunities for those individuals who can demonstrate language pro? ciency. Transfers are then an important aspect of developing a career. Anglo-American Premium Vice President of HRs (continued) Multibranders â€Å"Well most of the time, it depends on the case of course, most of the time, the shareholder of the hotel will be an investor but he will not be an operational actor. He is interested in the bottom line, not what goes on inside the hotel. † HR Vi ce President for Euromultigrow Mixed Portfolio Purchasers Prestige Operators â€Å"Usually owners interview the three candidates we put forward for each GM position and invariably, well they select the candidate preferred by the company, though Vice Presidents often have to use some powers of persuasion. Anglo-American Premium Vice President of HRs â€Å"We have to know our owners really well to give them the GMs they want and need. That’s a tough call when you’re growing so much. † Vice President HR Contractman International â€Å"Some owners are really dif? cult and have to be managed carefully. That’s where our Regional guys come in. Others are great and they are our business partners, with us for the long haul. â€Å" HR Vice President Euroalliance â€Å"Owners do have a lot of in? uence because if we give them somebody and they say ‘we don’t think this guy’s any good’, well!Although we could force them on them it isnâ⠂¬â„¢t a very sensible thing to do. So the owning company does have a big bearing on the GM slot. † Corporate Director of Human Resources Globalalliance (continued) Extent of owner in? uence and cultural differences â€Å"We have owners, for example, . . . but we have owners who are very, very clear about the people who we are likely, or more often than not, we can’t employ. Usually it’s in terms of nationalities and colours, race and sexual preferences they don’t like.It is their hotel and if they say ‘I don’t want somebody with red hair’ then you don’t put somebody â€Å"Owner interference depends on our brands, with red hair in, it’s as simple as that. † Britbuyer HR EAME director the more exclusive the brand the more in? uence but mainly we propose people ‘this candidate has our ? rm support’. â€Å"The frequency of moves our managers Obviously the quality of the relationship make are also driven by how tightly an with the owner is very important and you owner wants to hang on to them.So we’re must respect their wishes pertaining to GMs constrained by hardship factors, and but it doesn’t cause us much trouble really. † owner’s predilections and preferences. † Vice President for HR FranchiseKing Regional HR director USmixedeconomy The role of strategic groups 529 Table IV. PR 41,4 530 How and where managerial talent is found Table IV. Multibranders â€Å"We have our area, regional human resource people help our GMs identify their managers who might one day make it, who have the potential to be GMs too. The area human resource people then run some courses and do the training we have developed through our company university. HR Vice President for Euromultigrow Mixed Portfolio Purchasers Prestige Operators â€Å"How do we manage our GMs? Well we include all managers here – well it’s a very integrated approach to career development , or management development and the annual appraisal and it all comes together with succession planning and the work we coordinate here (gestures to the corporate head-of? ce). † Corporate Director of Human Resources Globalalliance â€Å"We’re [the executive team] in the hotels a lot, and the President was really great, yesterday he was saying ‘You know everybody whether you’re ? ance or business development or marketing, when you’re in the hotels and you spot people who are really good, notice it, you know get a note of the name, make sure that we’re also all talent spotting our own people. † HR Vice President Euroalliance â€Å"We must therefore nurture excellence in every one of our employees, especially our local nationals – the people who live in the countries where we operate hotels. † Vice President HR EAME Contractman International â€Å"At the Vice President and divisional director levels we’re always trav elling, listening to what are people are saying and telling them about what’s happening across the company.And spotting talent too. † Anglo-American Premium Vice President of HRs (continued) â€Å"I mean I am very conscious from this conversation we are not doing all we could to develop the next generation of GMs. It is partly because the number two position in some units has disappeared. So there aren’t enough opportunities for heads of departments to move on and develop their experience. We haven’t had a problem so far but as we increase (grow) we might be struggling for the right calibre of GMs in a â€Å"Some of our approach to identifying GM few years time. Britbuyer HR EAME potential is systematic, some is opportunistic. We’re trying to become more director systematic, through the new competencies process. We’ve recognised we have to have â€Å"You must realise that traditionally we have more local nationals and fewer expatriates. â €  consciously developed very good resident managers/EAMs (Executive Assistant Corporate Training and Development Managers) so when these individuals took Director FranchiseKing over their own units there was a very low risk of failure.Since our purchases and down-sizing, however, there are now some properties that no longer have a number 2 manager. Thus we have effectively stopped developing this ‘almost’ risk free human resource – it may cause us problems in the long term. † Vice President HR USmixedeconomy Multibranders â€Å"Our restructuring of brands and growth in franchising means we have to be clear about what managers do to make the hotels successful. Our company university is critical for training to our brands so all our managers know. † Assistant HR director for Euromultigrow EAME Potential GMs . . â€Å"It’s very intensive (the assessment centre) with personal counselling, tests to see where their stresses and strains are, and management skills across the board, running from 8 in the morning to 10 at night. It’s really very intensive and we have people â€Å"When we go outside, well we steal from the from across the world, with different â€Å"Performance of our business is crucial and competition and just rely on the grapevine or languages and cultures, the mix of people is seen to be the best element of these maybe on-spec applications.There’s some that is why so much investment and events. †Anglo-American Premium Vice development had been made in this area of use of executive search but that’s very President of HRs expensive. † Regional HR director competencies and performance management. There’s been a clear growth in USmixedeconomy â€Å"For the assessment centre a report is pro? ts since the competencies were ? rst written on them based on what we feel they developed. † Vice President for HR demonstrated, in the way they acted during FranchiseKing th e course.What is okay and the right way, what’s to be demonstrated and what’s to be discussed, where they feel they need development in, and from that we can more or less determine the time span its going to take so that they’ll be ready to be a GM, and what has to happen in-between so the individual development is planned. † Corporate Director of Human Resources Globalalliance â€Å"In fact it is incredibly incestuous and people just seem to appear or materialise. We wouldn’t directly poach someone, well . . . , but if someone made it clear to us they’d be interested then we’d feel ? e about calling them up. † Britbuyer HR EAME director â€Å"They all go on a leadership development programme and I design and I teach those with a co-trainer, I like to see that I’m there with them for a full week and we run an assessment process with the leadership development programme. So they’re booked for tests and exercises ba sed on the four management skills areas and they have individual feedback during the brief to let them know how they’re doing. This sets them with an individual plan for the future. † HR Vice President EuroallianceMixed Portfolio Purchasers Prestige Operators Where speci? c career interventions emerge The role of strategic groups 531 Table IV. PR 41,4 Strategic groups Strategic group variables HRM outcomes Brands and market segmentation Multi-branders Hard brands, serving several different market levels 532 Mixed Portfolio Purchasers Prestige Operators Allows more localisation of management talent due to standardisation and clear criteria for operating brands Movement within and between brands facilitated to prevent career bottlenecks Some soft (international) and some Dif? ult to facilitate movement hard (domestic) brands between international brands due to recent purchases, no transfer between domestic and international brands due to skills mismatch Importance of comm unication to assimilate new acquisitions Softer brands Emphasis on transfers to develop managerial experience of different countries/markets, and types of hotels Encourages and facilitates employees at all levels to gain international experience Large diverse organisations, structured on the basis of brands and some geographical factors Critical mass of units in some locations Organised on International and domestic divisions.Slow assimilation of newly purchased international brand Some critical mass of units Companies have developed guides to articulate management positions and skills across brands Critical mass allows multi-unit UGMs and more local recruitment and selection activities Some local recruitment and selection, less development through strong internal labour market and more acquisition of management talent Critical mass allows more localisation of management talent but not co-ordinated effectively throughout the companies Regional of? es co-ordinate transfers and HRM pr actices but also learn from subsidiaries to pass experience, knowledge and expertise on across other regions. IT plays an important role here Across company recruitment and development schemes rather than localised versions. Provides single ports of entry at (sub) department management level to locals (continued) Structure and organisation Multi-branders Mixed Portfolio Purchasers Prestige OperatorsSmaller portfolios organised on regional lines Limited critical mass of units Table V. The IHC strategic groups, their strategic variables and the HRM outcomes Strategic groups Centric orientation Multi-branders Strategic group variables Primarily ethnocentric HRM outcomes The role of strategic groups Mixed Portfolio Purchasers Prestige Operators Highly standardised services seem to facilitate low reliance on PCNs at subsidiary level though they are prevalent at executive level Dif? ult to discern – bypassing of PCNs still mainly in place for acquired companies, some stages through acquisitions locations with HCNs (critical (McKiernan, 1992) mass) but dominated by Western nationals Aspiring geocentric Attempts to harness managerial talent from around the world regardless of nationality through co-ordinated and integrated HRM activities UGMs still primarily from Western (European and American) backgrounds, executives in particular 533 Methods of growth and market entry expertise Multi-branders Growth through hard brands and the development of suitable investors (master franchisees and owners)Mixed Portfolio Purchasers Prestige Operators UGMs have speci? c knowledge and skills in operating highly standardised hotel services and passing knowledge onto others (franchisees) HRM mechanisms de? ne performance and selection criteria for managers and employees Acquisition used alongside mixed UGMs are likely to have expertise methods of market entry (mainly in exploiting value from purchased properties management contracts) De-layering of organisational hierarchies (d isappearance of deputy UGM position) and local recruitment initiatives were seen to help realise returns on their acquisitions Managers demonstrate speci? Growth primarily through pro? ciency in managing more management contracting, some marketing agreements, and equity luxurious and culturally adapted hotels and their owners investment. Global but local More extensive and integrated outlook HRM interventions, which support extensive transfers and development opportunities, throughout human resources, not just managers Table V. PR 41,4 534 only in a few hotels or in speci? c countries and with speci? c types of owners (for example, governments) were there two or three managers presented to owners in a â€Å"beauty parade†.The Multi-branders were more concerned about the co-ordination of franchise operators and training and communication were seen to be vital mechanisms for managing these issues. These were the only companies who identi? ed mandatory training courses for manag ers and held speci? c courses that their franchise partners were obliged to attend. Constant travelling by corporate executives was seen to further reinforce company values and assist in harmonization between geographically disparate franchised, managed and owned units.Both companies showed evidence of strong similarities associated with managing their multi-branded, and multi-market entry strategies and large, diverse portfolios. Dividing their HRM interventions into areas or countries where there was a critical mass of units was appropriate given the scale of their operations. Strong values, often based on the origins of the company, ? were communicated through frequent communiques and training opportunities further reinforced the brand standards and achieved appropriate levels of corporate synergy in the face of competition from their smaller but potentially more nimble competitors.Strategic group 2: Mixed Portfolio Purchasers The Mixed Portfolio Purchasers had been through consi derable periods of change and growth prior to the researchers’ ? eldwork. In addition to acquiring smaller European hotel chains they had substantially expanded their domestic and international portfolios through other acquisitions and mixed market entry methods. Both had international and larger domestic sections which were managed almost completely separately, although

African American-European American Iat Essay

The version of the IAT, that I chose to take is the African American – European American IAT. There were a few steps in order to complete the test; the first step was to fill out information about myself. The questions that I answered were related to my age my educational status, nationality, religious beliefs and my current state of employment. The next step of the test was to choose either ‘E,† or ‘I,† to indicate my choice of African American for a picture of a African American or European American for a picture of a European American. The next series of questions asked me to select either African American grouped with â€Å"bad,† or European American with â€Å"good’. Another series of questions was visually posed this time with, African American grouped with good and European American grouped with bad. The results show that data suggests a strong automatic preference for European American’s compared to African Americans. My automatic preference was toward European Americans. The results of this test aren’t very surprising to me. In class we were told how the test would go, so I already knew what to expect. There was a small bit of doubt whether or not the test would indicate a strong preference for one or the other at all though, because I am Hispanic. I would have speculate that based on the fact that I grew up primarily in white suburbia in a private school that almost exclusively consisted of all white students, that my preference is a subconscious choice. I am most familiar with European Americans therefore I chose them over African Americans. There is a distinction between implicit attitudes and explicit attitudes, that distinction is simple. Implicit attitudes are the attitudes that we don’t think about, they are automatic. Explicit attitudes are the attitudes that are consciously controlled. According to Gawronski and Bodenhausen, in the text, Social Psychology,†Our automatic implicit attitudes regarding someone or something often differ from our consciously controlled, explicit attitudes†(p.51). From the results of the IAT that I took, I would have to say that my implicit attitudes towards African Americans, do not match my explicit attitudes about African Americans. The reason that I believe that my implicit attitudes are different from my explicit attitudes is that I usually make a conscious decision to be friendly and welcoming to any person that I come in contact with regardless of gender, race, age, or sexual orientation. The results are mildly surprising, however, I believe that I am more accustomed to being in the company of European Americans, and therefore I show a distinct implicit attitude favoring them. Implicit attitudes are a dangerous thing; we should pay particular attention to how we label people explicitly, so that with time, we can manipulate our unconscious attitudes and impulse reactions to certain people. A good example of problems that people run into with their improper mind set comes to us from our text, Social Psychology. Age is the example Bugental and Hehman used in 2007, when they discovered that people treat the elderly differently than they do people whom are younger, they explain that â€Å"People’s perceptions of the elderly- as generally kind but frail, incompetent, and unproductive- predispose patronizing behavior†¦Ã¢â‚¬ (p. 308). It’s that attitude that people hold about the elderly that according to Bugental and Hehman, â€Å"predispose patronizing behavior, such as baby-talk speech that leads elderly people to feel less competent and act less capably’ (p. 308). It is important that we change our thinking, because if we continue to have the same biases, we not only do our selves a disservice in being implicitly and or explicitly inappropriate in our attitudes, but we also risk the chance of hurting others in our actions. Works Cited Myers, D. C. (2010). Social psychology (10th ed. ). New York: McGraw-Hill. Pages 51,308 Psych 312 Extra Credit 10pts 5-8-13 Eli J. Guymon Gender – Career IAT The second test that I took was the gender – career IAT. Before the test began, I was asked to report my beliefs about women versus men in the work force and women versus men in the home life. The second set of questions asked me to fill out information about myself. The questions that I answered were, what is my age, my educational status, nationality, religious beliefs and my current state of employment. Following those questions were questions about my family growing up, they wanted to know if I had a mother as a primary care giver, and if she worked outside of the home, specifying what she did for a living, and if there was a secondary caregiver, such as a father or step father, where they employed outside the home, and what their occupation was. The next step of the test was to choose either ‘E,† or ‘I,† to indicate my choice. The groupings in the first series of visual concepts to match were men’s names with the word men and women’s names with the word women. The next step was to match men with career minded words and women with household related words. Finally in the final sets of matching words the groupings were reversed so that men and household related items were a pair and women with career minded words belonged together. According to the results, data suggested little or no association between male and female with career and family. I did not have a automatic preference. My explicit and implicit attitudes match, I do not consciously nor do I subconscious place anyone in a group that favors either individual in the work place or family. I am not surprised by my results because I was raised in a home where my mother was a primary care giver but I also received care giving from my step father. Both my mother and my step father worked outside of the home. Both my mother and my step father shared responsibilities equally except where one person seemed to enjoy a task more than the other, that partner would assume say a specific domestic role that the other was happy to not have to do. For an example of a domestic role that both of my parents needed to be done but one seemed to favor it over the other, grilling outside, was my step fathers domestic role because my mother did not enjoy doing that work, and my step father rarely did his own laundry, because it was a task that my mother felt comfortable doing by herself.

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EMC Plc Strategic Management - Essay Example What’s more, existing companies have barriers to new entrants such established market strength and shares of the already established firms, cumbersome process of registration, high initial capital outlay, and developed brand loyalty amongst existing customers. As such, new entrants are likely to find it difficult to penetrate into such existing markets and industries calling for efficient and effective strategies. Regarding established industries and market, automotive industry and market is one of the deeply established with many players but controlled by few. Some of the great players within the industry include GM, Ford, Daimler, Chrysler, Toyota, Honda, Nissan, Peugeot, Renault, Hyundai Motor, Mazda, and Fiat amongst others (Nieuwenhuis & Wells, 2005; p 69). European Motor Company (EMC) operated as part of a large industrial conglomerate with interests in the aerospace, defence and medical sectors before is acquisition several years ago to an automotive group who made significant investment in the company for a few years. Nevertheless, the automotive group felt unable to support the business any further because of a rapidly declining market share. The following is an analysis of EMC Plc and the automotive industry. Main analysis of this paper focuses on both internal and external market factors. Attaining such an analysis is possible through various strategic management tools and models such as PESTLE, SWOT, Porter’s Five Forces, and Critical Success Factors that have so far been of importance to the organization. In addition, this analysis focuses on strategic direction of EMC Plc covering a period of 5 years (Nieuwenhuis & Wells, 2005; p 75). Such strategic direction employs the use of strategic defining tools and concepts such as mission, vision, overall target markets, strategic rationale, as well as financial objectives. The analysis winds up by providing strategic development and progress coupled with reflective portfolio. In order to attain these, the paper is divided into three parts with different sections. Part 1: Initial Strategic Position and Intentions 1.1 External and Internal Initial Situation Industries and firms face different factors both from within and outside. External environmental factors refer to those that business organizations and industries have no control over for instance, political, economical, socio-cultural, technological, legal, and environment. On the other hand, internal environmental factors are those that a firm or industry may control such as the strengths, weakness, threats, and opportunities (Watson & Head, 2009). The following discussion uses various tools to explain automotive industry’s environmental factors and their effects on EMC Plc’s operations. 1.1.1 PESTLE Analysis EMC Plc is likely to experience political, economical, socio-cultural, technological, legal, and environment as illustrated in Appendix 1(a). EMC Plc experiences political stability and advantages from various political factors such as degree of government involvement in business activities, the serene political atmosphere that European

Accounting Implications to Enron Corporation Case Study

Accounting Implications to Enron Corporation - Case Study Example It is evidently clear from the discussion that the Enron Company had a robust outlook of accounts; it was highly valued stock, and it had a good reputation for making profits. Being a fast-growing company with high promotion activities, Enron was heading for great heights in business. These characteristics are ideal for any person who wants to invest, and therefore, Enron had many investors coming. The accountants did not lay out their true and fair financial records. The accountant’s application of creative accounting practices to manipulate the accuracy of the records was a common practice. The management did this by establishing many limited liability special purpose entities in order for Enron’s accounting officers to transfer liability. This bid to ensure all accounts appear without liabilities was a strategy that seeks to maintain a robust and increasing stock price, thereby keeping its investment grade credit ratings. The role of the accountant is to ensure the m aintenance of accurate books of accounts, a role that the accountants clearly did not perform. Confidence in the financial information produced by professional accountants is one of the main driving forces for public investments. Accountants have the role of safeguarding the public’s interest by providing information that is true and fair for investors’ decision-making. The manipulation of accounts in order to favor the company and thereby deceive the public to rush to invest is unethical. There is a conflict of interest in these dealings. The accountant has to oversee the maintenance of the image of the organization and at the same time protect the interest of the public. This context becomes worse when an accountant also has personal interests in the dealings of the organization. In such instances, accountants should declare any form of conflicting interests and seek guidance when working during such situations. However, this was the fraud by the organization; the pu blic interest should take precedence over personal and organizational interests.

Middle east and international relation Essay Example | Topics and Well Written Essays - 1750 words

Middle east and international relation - Essay Example that substantially ‘oils’ the world since large volumes of crude oil, a key source of energy for human global use, are mined in this region (Ismael p.183). As a result of its strategic position and numerous reserves for petroleum resources, Middle East has evolved as one of the most critical regions of contemporary world. In terms of political stability, Middle East has not been lucky as most nations of the region experience unstable political environment, an opportunity that has been exploited by superpower nations as they fight it out to gain advantage in the region (Ismael p.183). Economically, this is a region characterized by poor economic record for almost the previous two centuries. Compared to other western countries, the region’s per capita income is seen to be less than a third of per capita income in most of the advanced nations and life expectancy is almost eight years lesser (Kuran p.1). On overall, major nations of the region are characterized as poor performers economically (Kuran p.1). One theory that still remains disputed for providing reasons for underdevelopment of the region postulate that Islam ‘inhibits’ economic development of the region through its ‘culturally insensitive’ aspects such as â€Å"fatalism, personalism, laziness, lack of curiosity, mistrust of science, superstition, conservatism and traditionalism† (Timur p.2). Therefore, the essence of this paper is to look at issues of Middle East as it influences international relations. Israel-Palestine conflict is an issue that cannot be resolved today, tomorrow or the day after. It is a hot issue that both sides backed by their various international allies have approached with particular definite positions hardening every day. The problem originates from events of 29th November 1947 when the United Nations’ General Assembly passed a resolution to partition Palestine into two countries one occupied by Jewish and another occupied by Arab (Karsh p.8). Jerusalem was to

Defining the Humanities Essay Example for Free

Defining the Humanities Essay After reading this week’s lecture and my understanding of what humanities are is the study of what people have experienced and how they express this experience. Humanities are how people have interacted throughout their existence and how people interact today. Humanities are the study of the philosophical beliefs of a culture. The philosophical approach to understanding a culture is what separates humanities from science and history. Science and history are exact and rarely are open for debate once it is proven to be fact. Science will set out  to prove its point, whatever it may be, through precise calculations. Science also studies theory and probability. Science lacks imagination in their calculations whereas humanities use imagination to understand past culture. Science wants to prove how people came to exist whereas humanities seek to understand why people exist. History is different from humanities because history studies documentation as facts and undisputable regarding what happened. Humanities seek to answer why it happened and to understand it. History was recorded in books in  libraries, Humanities are written on walls in caves or in the design contained in buildings. Today cultures express their interests, their experiences, and their values through many forms such as art, music, and movies. Sharing experiences is perhaps the most basic form of explaining who people are. By sharing these experiences in the forms of art, music, and movies, it allows us to share information about us through our creativity. In today’s culture these three forms of expression allow people to show their individuality and to connect with many on different levels. Art takes many forms and is interpreted by an individual differently. Colors and design reflect our feelings. Black and white expresses loneliness and pain whereas bright colors express happiness. A painting for example, allows an artist to express themselves in a way he or she feels. It is their visualization of their thoughts (Kitchin, 2004). Society looks at the painting and is free to interpret it their way. One person may see happiness whereas another sees sadness. A picture of time square could mean chaos and seem overwhelming to one from a rural area where someone from a city sees everything he or she needs. People continue to express themselves with music. The meanings behind the words of the songs often come from the feelings and the experiences of the author. It is the responsibility of the musician to express those feelings and experiences through sound. Music with soul (Hakes, 2011). Music has been very important to our culture. Think of how important the Beatles were to world or even the Grateful Dead. My personal favorite band is Linkin Park. They are my favorite because I can relate my life to the words of their song. Their music attracts those DEFINING THE HUMANITITES 3 who appear to be weak or who do not appear to be societies strongest. Their song â€Å"The Little Things Give You Away† was written about Hurricane Katrina. The devastation from Hurricane Katrina was widespread devastation. Their song attempts to reflect through music the pain and suffering affected by it. Movies are much like music however instead of only simply able to hear words and visualize it; the movies create the visualization for the person. Movies use categorization such as romance, action, and drama. Movies based on real life events attempt to capture those events and explain them. Movies can show the romance side of a situation or even the heroics. The recent movie Argo is about the falling of the United States Embassy in Iran, which was overrun. This movie reflects the horror that six members went through while showing the heroics of a CIA member to return the members of the Embassy to the United States. These three forms of expression will continue to exist as time continues. They are acceptable means of  expressions and are a very important part of today’s society. All three bring joy to people and if capable a person can express him or herself like none before. DEFINING THE HUMANITITES 4 References Kitchin, M. (2004). Art and expression. Retrieved from http://www. students. sbc. edu/kitchin04/artandexpression/artandexpression. html Hakes, T. (2011, March 11). Music as expression vs. music as entertainment. Retrieved from http://abovegroundmagazine. com/blogs/letter-from-the-editor/03/15/music-as-expression-vs- music-as-entertainment/

Psychology and Perspectives Essay Example for Free

Psychology and Perspectives Essay Human beings are given the unique capacity to view things not just the way they are but also on the pre-programmed processes we use in describing a situation. These perspectives can come from many different external influences and by internal factors involving our personal and historical development. On these reason we can employ psychology to study why and how we view things and how these factors influence our perspectives. There are many psychological perspectives presented in the field to distinguish our differences from other people. However, though we have been guided by these explanations on how we react mentally and physically over a situation, these perspectives, though they are limited, complement each other to form a unified explanation on our views. Their questions present different answers which can describe the paradigms of human existence and process, based on the different aspects of their functions and influences. This paper will discuss several psychological perspectives and their relationship to our daily routine of looking at things differently from others. View point and summaries of related topics will be discussed applied with the neuroscience, evolutionary, psychodynamic, behavioral, behavior genetics and cognitive perspectives. These perspectives are best to explain the differences people have on viewing a situation. Neuroscience Perspective First, the neuroscience perspective looks at the internal viewing functions of a person. This involves the processes of the brain in conceiving a situation and the underlying influences that affect a persons behavior. It describes how the body and mind control our emotions, memories, and sensory processes to react on a given situation. In The Girl with a Boys Brain by Carlin Flora, neuroscience perspective is used in determining a persons tendencies and irregularities by identifying brain processes and disorders.   Kiriana Cowansage has had obsessions and successes in many areas of her life. However, though her brain is above the average intellectual norm, she often gets lost in her own neighborhood. She is then diagnosed to have Aspergers Syndrome, a mental disorder highly functional in the autism family. This condition is found usually on boys due to their innate tendency to systematize. Kiriana is said to be weak in relating with other people and in situations she is in. Often times she gets confused by unfamiliar events and get lost helplessly in it due to her faulty sensory processing systems. Kirianas behaviors are apparently affected by her condition and needs attention on how inner processes to solve her problem. This inner view to explain a persons behavior and practices is described in neuroscience perspectives. Evolutionary perspective Evolutionary perspective relates our ancestral environment to be affective of our behaviors at present. The historical development of people and their retained and their passed characteristics are considered to be factors that affect their emotions and tendencies. Evolutionary psychology taps on the affective structures of human ancestral environments on the establishment of emotions, personalities, cognitive processes, and mental disorders (Nesse, p6). In a Psyched for Success article publsihed in October 2003, evolutionary perspective is used in describing the causes and implications of depression. There they raised the question of whether depression is simply a disorder or a sign of emotional fatigue. The article states that, in centuries past, aspects of human life have been internalized and passed through generations to our present life. These aspects of the past are still being used but are insufficient or inappropriate because of our more complicated present. Depression is said to signal this mismatch between our old ways and our new situations (2003). Since life today are relatively harder, people cannot cope completely with new and unfamiliar events presented to them thus causes stress and signals a people to step back and reassess the situation and their reaction. Psychodynamic perspective Psychodynamic perspective asserts that inner conflicts of the past affect a persons behaviors and emotions at the present. It is based primarily on Freuds concept of the unconscious where all repressed feelings are stored and affect our views unnoticeably. People who have abusive and violent experiences in the past are more likely to have repressed emotions stored in their unconcious and these defines who they are in the present. The article In the Name of Love describes adult relationships to be greatly affected by peoples relationships during childhood. Johnson and Maranos report relates the attachment theory of infancy, the characteristic of a child to rely and depend on an immediate relative, a mother usually. This attachment is then carried as children grow old and establish their own relationships with other people (Johnson and Marano, 1994). Partners rely on each others affection and availability. When people are in fear or anxiety, they will certainly ask for support from their partners. Children and adult relationships are underlined by the common need of a person for attachment and security. Behavioral perspective Most of the time there are environmental stimuli that automatically or force us to make a reaction. Behavioral perspective describes this immediate factors as affective to ones behavior. Psychotherapy utilizes this perspective to describe a persons behavior through various stimulus and on many occasions it is used to erase or establish a behavior in a person. In an article by Tim Bower and Robert Epstein, behavioral perspective can detect psychological disorders on patients and consequently affect a therapists own personality. Due to the reinforced and repeated exposure to the cases and situations of patients they treat, therapist have a tendency to absorb behaviors and manifest it in their own lives. In a certain instance, psychologists who experienced having a patient suicide felt guilt and self-incrimination which could lead to other unprofessional behaviors. Also, the distress caused by their patients faulty disclosures have affected their lives with their own families the same with how their family relationships affect their professional responsibilities. Also, mental health workers are at greater risk of substance abuse due to their treatment of patients with the same behavior (Epstain and Bower, 1997). Genetic behavior perspective The genetic behavior perspective relates to the innate causes of behaviors. The hereditary influences that people often are affected in their responses to stimuli are regarded with much research and attention to prove. The concept of being born and not made can be found on this perspective as what the article Bruce Avolio explained. In Are Leaders Born or Made?, he stated that genetic codes also contain behavioral preferences and tools for people be what they are â€Å"meant† to be. Leaders are equipped with high energy, desire to affect others, determination and intelligence. Scientist have spent time and effort in proving that these qualities are innate and   are gifts to chosen individuals tasked become leaders. However, these characteristics are later found with the possibility of being learned and instilled to us by our parents at the early stages of life (Avolio, 1999). Also, in the article, My Genes Made Me Do It, Peele and DeGrandpre genetic codes programmed with certain behaviors are being used as excuse for tolerating certain actions (Peele and DeGrandpre , 1995). Often times, people are fooled with wrong theories on genetic behaviors and on this note researchers are focused on specific areas of life which can really be passed genetically. Also, if our personality is already determined during the early stages of conceiving, people tend to withdraw efforts on changing their behaviors. This perception is considered to have monumental consequences on how we view ourselves and on personal development. These psychological perspectives – neuroscience, evolutionary, genetic behavior, behavioral, and psychodynamic – are established to have various views on how human beings behave and relate to others. Though these perspectives raises differing questions and answers, they all relate a persons process and structure for behavior. The study on these perspectives not only open various doors for psychological exploration but also give different means on how to describe personalities and offer treatments on the disorders which haunt people over the course of their life by identifying the internal and external etiologies of their abnormalities. Also, these only prove that wherever human perspectives are present, psychological approaches can be utilized to determine the wide range of causes and influences of these views.

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