Workplace culture and productivity

WORKPLACE CULTURE AND PRODUCTIVITY By Alan Augustson Survey and Questionnaire Design Harris School of Public Policy Studies The University of Chicago ABSTRACT This survey offers a means of defining workplace culture and measuring its relationship to productivity. It is intended to be used together with internal organizational measurements of productivity, in order to facilitate change among organizations interested in improvement. CONTENTS I. INTRODUCTION II. DEFINING WORKPLACE CULTURE, AND IDENTIFYING ITS ELEMENTS III. INTRODUCTION TO THE SURVEY A. DESIGN AND TESTING B. APPLICATIONS C. ADMINISTRATION OF THE SURVEY IV. THE SURVEY I. INTRODUCTION It should seem rather natural that human capital, and its development, are areas of particular interest to me. After all, I have labored in about two dozen workplaces in my lifetime, nearly all of them hopelessly dysfunctional. One cannot study the world's best business practices, all the while subjecting himself to the world's worst, without developing a fascination with workplace culture and its relationship to productivity. With both public and private entities feeling the effects of adverse economic conditions that are likely to last for years, employers appear on the surface to be blessed with a buyer's market for labor. However, these employers are themselves at the mercy of a shrinking consumer base, one that has been complaining of poor service for decades, and one that itself now seems to have a buyer's market. Corporations and bureaucracies cannot have missed this, as many now are at least paying lip-service to a new, customer-centered service philosophy. Indeed, an entirely new industry called Customer Relationship Management (CRM) has emerged, bearing tools and practices that some believe can give flesh to that ideal. But can a change in philosophy have any meaning outside the boardroom? Can a firm "dumb down" its hiring standards and shortcut its training processes, in an effort to save on personnel costs, and then seek to provide a better consumer experience through "smart" software and scripted procedures? Principal-agent theory suggests that this cannot happen, without substantial accompanying changes in the day- to-day operating environment in the proverbial trenches. Without adjusting the balance of positive and negative reinforcement, the detachment between behavior and bottom line is maintained in the mind of the employee. Given the same system of incentives to cooperate or defect, the employee will conserve his or her effort toward the customer, and neither will notice any change in the overall experience. II. DEFINING WORKPLACE CULTURE, AND IDENTIFYING ITS ELEMENTS For purposes of this proposal, I would like to define "productivity" as the mean units of output per employee in a workplace. Although output will obviously take different forms in different environments, it may still be possible to compare one workplace to another using this definition. Even if this is not possible, one can still benchmark current levels of productivity in a single workplace, and thereafter test for improvements in a longitudinal study. I have identified (and seek to measure and test) the following factors that that can be described as "cultural" in nature, and that I hypothesize will show a significant relationship to productivity: • Opportunity: Granted, no one moves from the mail room to the vice president's office anymore, if indeed people ever did. Such scenarios are more the realm of bad fiction. But to what extent do employees feel empowered to better their salaries, perks, and overall positions; through their own actions and within their current employment environment? • Autonomy: With anarchy at one end of the continuum, and dictatorial micromanagement at the other; to what extent do employees feel empowered to make their own moment-to-moment decisions and exercise their own judgment within a given workplace? • Security: To what extent does an employee feel replaceable, or irreplaceable, in his or her current job? This factor may assume any of a number of contexts. For instance, is a job felt to be so undesirable that no one else would want it? Or, is a workplace so inefficient that it actually takes an effort to get oneself fired? • Significance: This differs from security in that it takes into account the health and position of the company in the mind of the employee. To what extent does a given employee sense the direct relationship between his or her efforts and the success of the organization? Can a job be perceived as so insignificant that it truly does not matter how well or how poorly it is done? • Polarization: Does an "us versus them" relationship exist in the minds of employees, with respect to management? If so, then how often (if ever) does one of "us" get promoted to one of "them"? Are new supervisors and managers developed internally, or are they almost always hired in from elsewhere? Do employees, who satisfy all current requirements, receive any training or grooming for the next level? Are managers perceived as competent, i.e., do they understand the processes that they manage? • Morale: Given that different organizations have differing abilities to compensate, promote, etc.; to what extent do employees feel valued for their performance and contributions in their current roles? Is input ever solicited from employees prior to making a substantial change (e.g. in benefits, procedures, etc.) that directly affects them? • Resources: Do employees feel that they have the tools and information needed to do their jobs and make correct decisions? Is information consistent across different channels? Is policy and procedure followed and enforced evenly between different employees and different departments? Do employees have to defer decisions that they feel quite capable of making themselves? Is effort wasted on redundant or duplicative tasks, made necessary by current procedures or policy? These (and, I'm sure, other) factors constitute the elements of workplace culture that I believe will show a significant direct relationship to productivity. III. INTRODUCTION TO THE SURVEY A. DESIGN AND TESTING I have designed a comprehensive survey that will measure the cultural factors within a subject workplace. Using this survey, I would hope to make contact with human resources professionals at private firms and at government agencies, interested in measurement and improvement of productivity (as they all claim to be). Surveys would be administered under conditions of anonymity, and the results maintained along with the organization's own benchmark measurements of productivity (as defined above). If the organizations chosen for study are sufficiently similar in terms of the work being done (e.g. call center work), then the units-of-output-per-employee measure should produce no great differences of scale. Analysis of multivariate regression could then be used to identify the extent to which the above factors contribute to productivity. Data can also be analyzed for similarities and differences between public- and private-sector workplaces. Again, if said organizations are very dissimilar, and if the differences of scale are too great, meaningful results can still be obtained internally by using a longitudinal study. Those firms who perceive areas for workplace improvement may choose to develop programs to that end, and measure both productivity and morale again after a specified period of time. The percent change between "before" and "after" measurements would transcend differences of scale, and multivariate regression becomes useful again. B. APPLICATIONS I would like to use this research and these results to illustrate organizational behavior to researchers and other students, and in advising firms and government agencies bent on meaningful change. I am confident that this study, and others like it, would contribute to the growing body of knowledge on the behavior of workgroups. C. ADMINISTRATION OF THE SURVEY For best results, this survey should be administered via the Web. This will preserve the anonymity of respondents. Consent is assumed as a condition of proceeding with the survey. However, for purposes of this written copy, the survey will appear in a format such as would be used in an oral interview. Respondents are not to have access to surveyor instructions. Said instructions will appear [IN BOLD CAPS] wherever needed in the text of the survey. [...]... ever, seen one of my co-workers get promoted to a supervisory or managerial position [1]True 5.2 Managers around here have a very good understanding of their employees and what they do [0]True 5.3 [1]False In this workplace, they start grooming people to “move up” and assume new responsibilities as early as possible [0]True 5.6 [0]False As long as I meet all the requirements, I have just as good a chance... skills and personal qualities [1]True 3.2 Almost anyone could do my job [0]True 3.3 [0]False I have co-workers whom I really feel should have been fired long ago [1]True 3.6 [0]False I push myself to excel, specifically because I like this job and want to keep it [1]True 3.5 [1]False It seems nearly impossible to get fired from this job [1]True 3.4 [0]False [0]False We have a high turnover in this workplace; ... followed and enforced pretty evenly, for all employees in all departments [1]True 7.3 [0]False I have to get a superior to make certain decisions, that I know I could be making myself [0]True 15 [1]False The tools I use in my job, are all up to date and high in quality [1]True 7.6 [1]False I sometimes get two different answers from two different bosses [0]True 7.5 [0]False I worry that my co-workers and. .. like this job and want to keep it [1]True 3.5 [1]False It seems nearly impossible to get fired from this job [1]True 3.4 [0]False [0]False We have a high turnover in this workplace; people are coming and going all the time [0]True [1]False [SECTION 4 SIGNIFICANCE] [CODING: MARK A “1” OR A “0” DEPENDING ON THE CODE YOU SEE NEXT TO THE CHECKED RESPONSE.] Respondent: Please mark only one answer, “True”... I don’t recommend our product or service to close friends [0]True 4.5 [1]False Almost everything I do at work feels important [1]True 4.4 [0]False [0]False The training program for this job is very demanding [1]True [0]False [SECTION 5 POLARIZATION] [CODING: MARK A “1” OR A “0” DEPENDING ON THE CODE YOU SEE NEXT TO THE CHECKED RESPONSE.] Respondent: Please mark only one answer, “True” or “False”, for... RESPONSE.] Respondent: Please mark only one answer, “True” or “False”, for each statement below as it applies to you 2.1 I make my own decisions on the job [1]True 2.2 My superiors know that I know my job, and they trust me to do it well [1]True 2.3 [1]False I feel that I am watched or monitored almost constantly while working [0]True 2.6 [1]False On at least one occasion with this employer, I have had a... promotion [0]True 5.5 [1]False New managers here are almost always brought into the company from outside [1]True 5.4 [0]False [1]False Sometimes I perceive a distinct “us versus them” attitude between labor and management [1]True [0]False [SECTION 6 MORALE] [CODING: MARK A “1” OR A “0” DEPENDING ON THE CODE YOU SEE NEXT TO THE CHECKED RESPONSE.] Respondent: Please mark only one answer, “True” or “False”,... [1]True 6.2 This company often makes big changes (to policies, benefits, etc.) without asking us about how those changes will affect us [0]True 6.3 [1]False We have focus groups, suggestion programs, and other things to inspire regular employees to offer good ideas [1]True 6.6 [0]False My superiors rarely, if ever, ask for my opinions [0]True 6.5 [1]False I really enjoy working here [1]True 6.4 [0]False... Hispanic, Latino, or other Spanish-speaking American not originating directly from Spain [I] Native American, American Indian, or other non-Spanish-speaking American aboriginal [A] Asian or Pacific Islander, including persons from the Indian subcontinent [W] White, Caucasian, or other American deriving from Europe (including Spain), from the Mediterranean Rim (including Arabic-speaking Northern African . WORKPLACE CULTURE AND PRODUCTIVITY By Alan Augustson Survey and Questionnaire Design Harris School of Public. defining workplace culture and measuring its relationship to productivity. It is intended to be used together with internal organizational measurements of productivity,