Happy Employees are Productive Employees - Case Study Example

Happy employees are productive employees Name Institution Abstract Organisations that keep their employees happy are likely to be more productive than those that do not. This paper relies on this premise to show that organisations can depend on their employees to attain success and effectiveness once they make their employees happy. The key thesis statement is that organisations that keep their employees happy are likely to be more productive than those that do not. To attain this end objective, organisations have to maintain a strong and positive relationship with its employees. As indicated in the paper through a survey of literature, work-family and work-life issues have significant implications on employee productivity as they increase employee happiness. In addition, organisations have to keep employees constantly happy. As this paper reveals, current studies have reiterated that employees are the central component and need to be constantly influenced and encouraged to be productive. Indeed, to achieve prosperity, organizations have to devise strategies that enable them compete in the increasingly competitive marketplace. Still, making employees happy has been a central problem for organisations, especially in the public sector. Public sector managers need to cater for the employees ‘hygiene factor.’ When managers influence employees to feel motivated, greater levels of performance is attained. From this, it could be reasoned that public sector organisations would deem it necessary to influence their employees to deliver elevated performance. It is concluded that in many public sector organisations, multifaceted issues affect motivation, and subsequently employee performance. Public sector managers, therefore, need to cater for the employees ‘hygiene factor’. They also need to make sure that employees are knowledgeable and can access the tools needed for the job. Again, they need to internalize that workers’ performance depends significantly on their capacity to motivate. The management should promote employee connectivity. They should also promote participation of employees in decision-making, provide them with responsibilities, assign them challenging tasks, and lastly, maintain good interpersonal relationships with the employees. Happy employees are productive employees Introduction The modern-day era has become highly competitive and many organisations, despite the size and resources, are focusing on improving their productivity. Accordingly, organisations in both the private and public sector hope and desire to achieve constant progress or success. To prevail over these constraints, some scholars have suggested that the organisation has to maintain a strong and positive relationship with its employees (Amabile & Kramer, 2011; Oswald et al., 2014). In which case, organisations have to keep employees constantly happy. Indeed, current studies have reiterated that employees are the central component and need to be constantly influenced and encouraged to be productive. Indeed, to achieve prosperity, organizations have to devise strategies that enable them compete in the increasingly competitive marketplace. According to Oswald et al. (2014), few organisations are of the conception that the employees are its key assets, which can lead to their success or decline. In this case, organisations that keep their employees happy are likely to be more productive than those that do not. Based on this backdrop, this paper argues that an organisation, through its employees, can attain success and effectiveness when the employees are happy. Unhappy employees tend to avoid the workplace, exit the organisation, spend little effort in jobs, and produce low quality of work. Conversely, employees who are happy at work are more likely to be creative, persistent, as well as productive. They also produce high quality work. Still, making employees happy has been a central problem for organisations. While there is a paucity of scholarly work on happy employees, there has been a lot of research on how happy employees are more motivated, and how motivated employees are more productive. Similarly, while many things can be done to indicate how employees become motivated and engaged, it could be argued that employees cannot become motivated and engaged when they are not happy (Mehta & Mehta, 2013). The key to employee engagement and motivation lies in how they are happy and satisfied at work. Therefore, employers must keep their employees satisfied by getting to understand their needs and concerns, as well as using different tactics to keep them happy based on their needs and wants (Stillman, 2014). Family tragedies and lower levels of work make employees unhappy and less productive. Current strand of researches have supported the perspective that happy employees are productive. One landmark study has provided evidence for the old axiom that happy employees are highly productive (Oswald et al. 2014). In a recent research conducted by Oswald et al. (2014), it was established that happiness makes employees more productive. The researchers carried out several experiments to provide evidence for the maxim that happy employees work more productively. Oswald et al (2014) established happiness made workers nearly 12% more productive. Oswald’s et al. (2014) study provided the first causal evidence that used piece-rate working and randomized trials to show how happy employees are more productive. Oswald et al. (2014) used four different experiments and a sample of 700 employees. The study revealed that employers that provided their employees with adequate work life balance were more likely to make their employees happy, and in turn more productive. Indeed, Oswald et al. (2014) asked the participants about recent family tragedies and examined the level of work and life balance to examine whether lower levels of happiness were subsequently linked to lower productivity levels. Their results showed that the recent family tragedies and lower levels of work and life balance made employees less motivated, engaged, and happy at the workplace. In turn, employees became less productive. Providing employees with adequate work-life balance increases their satisfaction, motivation, happiness, and subsequently productivity. Several case studies in the United Arab Emirates have showed how happy employees are productive. A study by Wiley (2010) shows that quality of life issues in the United Arab Emirates had significant effects on employee productivity. The researcher conducted an employee survey of worker in the UAE to understand how workers perceived the organisational policies and how these policies were likely to keep them happy and satisfied. Studies in the UAE have established that work-life balance is central to employee happiness at the workplace. In turn, it motivates greater productivity. In a recent study revealed by Emirates247 (2013), it was estimated that 75 percent of employees in UAE feel that a good work-life balance triggers their happy status, which in turn motivated them to be more productive. Apart from work-life balance, other sources of employee happiness, based on UAE experience, include recognition at work, career development, and long-term career growth. The study was conducted in 2012 by Bayt.com. In a related study in UAE by Sumaiti (2012) to examine employee happiness in UAE oil and gas organisations, such as ADNOC and Shell, the researcher brought evidence to the effect that work-life balance (WLB) is a significant issue of human resource management, which determine their level of happiness or satisfaction at the workplace. Another research regarding the implications of work-life balance on employee happiness by Skinner and Chapman (2013) also brings evidence attesting to the fact that providing employees with adequate work-life balance increases their satisfaction, motivation, and equally important productivity. Employers who keep their employees happy realise greater innovation and productivity. Internationally, Google Inc provides a relevant case study to show that employers who keep their employees happy realise greater innovation and productivity. The company has invested in employee satisfaction, engagement, support and work/life balance to promote their happiness. In their study, Oswald et al. (2014) found that employees at Google were happy, leading to a rise in productivity by 37 percent. This indicates that under empirical studies have supported the idea that happier employees are more productive. Oswald’s et al. (2014) study of Google Inc validates an earlier study of Apple Inc by Johnson et al. (2012), which had established that the driving force for innovation and productivity is happier workers who utilise their time effectively and increase the pace at which they work with compromising quality. Oswald’s et al. (2014), Johnson et al. (2012), and Skinner and Chapman (2013) agree that the findings of their studies have significant implications for employers’ policies. Indeed, Oswald’s et al. (2014) commented that since happier subjects tend to be increasingly productive, their findings provide guidance for managing all forms of organizations. In which case, employers should make efforts to make the workplace more emotionally healthy for the employees. One possible explanation for employee happiness is that they reciprocate with greater loyalty, commitment, and productivity in return for the employers’ practical support with the management of work-life demands. In order to appreciate the employer’s show of care and concern due to the favourable work-life policies, employees become more productive. What the research indicates is that work-family and work-life issues have significant implications on employee productivity. Indeed, Skinner and Chapman (2013) argue that many studies, more than 2000 studies, have examined how employees who have poor work-life balance find it difficult juggling their work life with their commitment at home. Such an imbalance brings about work-life conflicts, making them less productive. At the centre of work-life conflict is unhappy state of affairs when employees spend less time on leisure activities and more at work, making them unhappy. Like Skinner and Chapman (2013) attempts to show, Oswald et al. (2014) also shows that employees who spend less time on leisure activities or enjoying time with their families are likely to be less happy and less productive. To this end, Skinner and Chapman (2013) cited a study by the Australian Survey of Social Attitudes (2005), which found that more than 70 percent of employees aged between 18 and 65 preferred spending more time pursuing leisure activities with their families, while some 40 percent preferred spending less time working at their workplace. Therefore, there is substantial evidence illustrating that the costs of unhappy employees is high. In an earlier study by Higgins et al. (2004 cited by Skinner and Chapman, 2013) in Canada, it was established that work-life conflict led to unhappy state of affairs, which was estimated to have a cost as high as C$2.8 billion on healthcare system. Several later meta-analyses studies have showed that unhappy employees tend to have high work-life conflict, which contributes to poor commitment to the organisation and job satisfaction, and in extreme cases depression. These lead to poor productivity. What this shows is that a direct correlation between work-life interaction, employees’ happiness, performance and productivity are complex issues owing to the varied factors impacting on their outcome. How public sector managers can influence their employees’ performance In many public sector organisations, multifaceted issues affect motivation, and subsequently employee performance (Boyne, 2004). According to Sanderson et al. (2009), there are two types of performance: Standard performance and elevated performance. Standard performance consists of the degree of output that people deliver within the normal course of attaining a role. Managers get to influence these performances through hygiene factors that do not motivate productivity, although in their presence, it destroys employee motivation. Conversely, elevated performance comes about when individuals use flexible efforts, which influences them to “go the extra mile” as they become more committed to the organisation, alongside its objectives and mission (Reem, 2012). Public sector managers need to cater for the employees ‘hygiene factor.’ When managers influence employees to feel motivated, greater levels of performance is attained. From this, it could be reasoned that public sector organisations would deem it necessary to influence their employees to deliver elevated performance (Sanderson et al., 2009). Still, from a review of literature, organisations may blunder when they make efforts to attain elevated performance without considering the hygiene factors. To this end, management cannot influence performance by addressing the commitment factors unless they prioritise on the basic hygiene factors (See Figure 1 below). Figure 1: Addressing hygiene factors to achieve performance (Sanderson et al, 2009) Indeed, in the modern-day globalised economic environment, attaining finely tuned performance and efficiency has become increasingly significant compared to improving competitiveness, delivering better services, and reducing costs. In order to increase employee performance in public sector organisations, the management of these organisations first needs to cater for the employees ‘hygiene factor’ in order to motivate them to attain standards and elevated performance (Sanderson et al., 2009). The public sector managers need to make sure that employees are knowledgeable and can access the tools needed for the job. In most public sector work scenarios, managers have to attain the organisational goals by influencing employee performance. Hence, the managers need efficient and productive employees. While many factors are likely to lead to productivity, some researchers like Sanderson et al. (2009) consider job performance to be the most influential one. According to Reem (2012), job performance is a function variable, such as understanding the tasks, ability, motivation and environment. In which case, for the employees to perform well, the management has to ensure employees are knowledgeable and can access the tools needed for the job. To this end, motivation is equated with the actions and the knowledge of motivation factors in public organizations. Public sector managers need to internalize that workers’ performance depends significantly on their capacity to motivate. According to Sanderson et al. (2009), this is more significant in the public sector, as the government performance, as well as the efficiency of their administration affects the general society more significantly than the private sector organizations. At the same time, the desire to operate at an optimal level of efficiency and productivity has traditionally been a major issue of concern in the public sector organizations. Hence, in most countries with fewer resources and greater levels of efficient public service, keeping employees committed and motivated is a perquisite to achieving employee performance (Boyne, 2004). The management should promote employee connectivity. As Reem (2012) explains, if elevated performance has to be delivered, employees need to feel that their actions lead to the organisation’s overall performance. Sanderson et al. (2009) explain that in both the public and private sector organisations, employee connectivity provides a consequential connection between workers and the organisational goals and objectives. Organisations in the public sector should also invest in skills development. Investing in personal development and growth of the employees is essential if the employees’ performance has to be increased. Personal recognition is also crucial for improved employee performance. As Reem (2012) indicates, recognising the individual performance of employees by providing them meaningful feedback that shows the organisation appreciates their efforts also promotes employee connectivity, and subsequently better performance. What these show is that employee connectivity refers to the commitment driver that has a significant impact on employee performance. In essence, it requires that the management have to align employees to organisational goals and objectives. Still, Sanderson et al. (2009) warn that many managers tend to focus more on these commitment drivers without consideration for the hygiene factors addressed, leading to frustrations when employees’ performance fails to improve. Managers should as well promote participation of employees in decision-making, provide them with responsibilities, assign them challenging tasks, and lastly, maintain good interpersonal relationships with the employees. These assumptions have a long historical basis. For instance, in the1960s, Douglas McGregor expanded the Maslovian needs hierarchy to encompass management and employee performance. In McGregor’s work titles “Theory X and Theory Y,” the theorist proposed two approaches he believed dominated the attitude that managers have toward their employees (Reem, 2012). According to McGregor, managers believe that employees have a naturally disliking for work and hence need to be coerced into performing their duties. This assumption was dubbed Theory X. Conversely, other managers believe that employees approach work as an inherent part of life and, therefore, enjoy work and even look for responsibility. This assumption was dubbed Theory Y. In respect to McGregor’s Theory Y, it can be reasoned that public sector managers should promote participation of employees in decision-making, provide them with responsibilities, assign them challenging tasks, and lastly, maintain good interpersonal relationships with the employees. Reem (2011) suggests that Theory Y also means that the management has to “recognise employees and provide them with self-fulfilment through meaningful work-life-balance. Statistics: employee connectivity and participation The selected strategies for promoting employee connectivity and participation in decision making will ultimately drive employee engagement and productivity (Harter et al, 2012). Indeed, the need for employee engagement using the strategies is critical as a study by Gallup Consulting, a research company, shows that 4 out of 10 workers are disengaged or emotionally disconnected, leading to less productive (Smith, 2013). Another study by Gallup of 192 organizations in 34 countries globally and close to 1.4 million workers showed that employee connectivity and participation in decision making will promote employee engagement and better performance outcomes (Sorenson, 2013). An example of the companies that has successfully used this strategy is Roche Turkey. As evident in the Roche Turkey Corporate Responsibility Report, the company started the program in 2006, which emphasised on increasing employee contribution/participation, and improving employees’ connectivity, through face to face meetings. The company reported an increase in the engagement rate and participation rate 54 percent in 2007, which increased to 55 percent in 2009 and 66 percent in 2011. In 2013, it increased to 76 percent (Roche Turkey, 2014) Figure 2: Increase rate of Employee connectivity and participation at Roche Turkey (2014) Conclusion Organisation that keeps its employees happy attains greater effectiveness and productivity. There is substantial evidence illustrating that the costs of unhappy employees is high. What this shows is that a direct correlation between work-life interactions, employees’ happiness, performance, and productivity are complex issues owing to the varied factors affecting their outcome. Unhappy employees tend to avoid the workplace, exit the organisation, spend little effort in jobs, and produce low quality of work. Family tragedies and lower levels of work make employees unhappy and less productive. Current strand of research have supported the perspective that happy employees are productive. Providing employees with adequate work-life balance increases their satisfaction, motivation, happiness, and subsequently productivity. Employers who keep their employees happy realise greater innovation and productivity. In many public sector organisations, multifaceted issues affect motivation, and subsequently employee performance. Public sector managers need to cater for the employees ‘hygiene factor’. The public sector managers need to make sure that employees are knowledgeable and can access the tools needed for the job. Public sector managers need to internalize that workers’ performance depends significantly on their capacity to motivate. The management should promote employee connectivity. Managers should as well promote participation of employees in decision-making, provide them with responsibilities, assign them challenging tasks, and lastly, maintain good interpersonal relationships with the employees. References Amabile, T. & Kramer, S. (2011). The Power of Small Wins. Harvard Business Review, May 2011 Issue Boyne, G. (2004). Explaining Public Service Performance: Does Management Matter? 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(2013). How the Best Places to Work are Nailing Employee Engagement. Retrieved: Sorenson, S. (2013). How Employee Engagement Drives Growth. retrieved: Stillman, J. (2014). Happiness Can Boost Employee Productivity By 10 Percent. Inc. Retrieved: Sumaiti, R. (2012). The Work Life Balance and Job Satisfaction in Oil and Gas organisations in the UAE context. Retrieved: Wiley, J. (2010). Strategic Employee Surveys: Evidence-based Guidelines for Driving Organizational Success. New York: John Wiley & Sons Read More