People today are looking for much more than a pay check Essay Example

People today are looking for much more than a pay check Essay It is essential to remark that employees are not just human beings; they should be treated as assets also, because they are the economic resource that is valuable for the companys development and well-being. Nowadays, at the core of a commitment to an organization is the quality of the relationships that laborer have with their managers. It is the respect, the trust, and consideration toward the individual that motivates them performing exclusively (Nelson, 1997). In reality, the crucial outcome for the manager would be the fact that the workers are sharing the companys interests because they were challenged, inspired and supported. However, it does not mean that the abovementioned management strategy is the only one or the most appropriate one for every company. One size does not fit all. Traditional accounting systems find themselves challenged in deciding whether people could be valued as assets. There is a moral argument involved whether treating people as intangible assets is e quivalent to dehumanization (Mayo, 2000). Treating employees as if they truly were assets maybe would not only impact how they get accounted for by the company, but how, such treatment would positively affect the organizations long-term performance in financial aspect (Lustgarten, 2003). However, the emphasis should be put on the human factor because that is what energizes employees in reality feeling of belongingness. Utilitarian Instrumentalism v Developmental Humanism In 1960 Douglas McGregor developed two sets of theories in human resource management: Theory X and Theory Y. They are based on radically different assumptions (McGregor, 1960). According to Theory X people are lazy by nature, only pursuing their own interests. Workers have no ambitions and they avoid responsibility. No development is needed, enthusiasm exists rarely. Because of indifference, people cannot be trusted. Therefore they need to be strictly controlled. It does not reflect human nature but the organizations nature just like the scientific management itself (Taylor, 1967) where people were regarded as resources just like machinery was also a resource. Industrialization, scientific management and labor resistance set the scene for the emergence of industrial psychology. Treating workers as hands, or as extensions to the machines, was creating problems of control for employers and the new class of managers (Wendy Hollway, 1991: 34). Unfortunately, there is still a lot of Taylorism in us. A contradicting theory was needed. We will write a custom essay sample on People today are looking for much more than a pay check specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on People today are looking for much more than a pay check specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on People today are looking for much more than a pay check specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Theory Y is the opposite approach, called the Harvard model the emphasis is put on feelings, emotions, and motivations. The workplace is the source of self-actualization. Companies pay more attention to the creativity of their employees. It sounds like the perfect approach. Unfortunately, sometimes it does not work. It is not always possible to integrate the individual objectives with those of the corporation. So what is the perfect HR practice? The truth is that neither of them represents reality completely. It is complicated to understand why people behave in very different ways. That is why sometimes managers use the hard approach, sometimes the Harvard model. If we go deep into the theory we may notice that they can actually both exist at the same time and this is what represents reality. What is suitable for one does not mean it would be right for another. According to Torrington (et al 2002: 26) At root it is about whether or not there is an identifiable best way of carrying our HR activities which is universally applicable. It is best understood as debate between two schools of thought, although in practice it is quite possible to take a central position which sees validity in both the basic positions. McGregor (1960) argued that employees would respond reciprocally to how they were managed. Therefore, if workers were treated on Theory X they would react in Theory X manner, and vice versa. Maslows Theory Z and Ouchis Theory Z While Mcgregors XY approach is generally focused on ambitions and management from the supervisors and corporations perspective, Maslows Theory Z allocates more reliance on the behavior and responsibilities of the employees (1954). He developed what is called the hierarchy of needs up that human beings progress. Once people reach a specific level of the hierarchy, they need to fulfill the next one. There are general needs (physiological, safety, love, and esteem) which have to be reached first, and eventually self-actualization. From Maslows theory, modern executives and managers find what really motivates employees. Maslows Theory Z should not be mistaken with the William Ouchis book called Theory Z. Ouchis approach is often mentioned as the Japanese management style. It is a mixture of Theory Y and modern Japanese management which assumes that employees are loyal and share the organizations interests so it places a huge amount of reliability, respect, team-work and support. Treating Employees as Human Beings A fames quote states that communication is the lifeblood of an organization and it truly is; it keeps the members of the company together. Better communication means employees are well-informed and thus, more productive because they feel involved. According to Jan Carloz (Former President and CEO, Scandinavian Airlines System), an individual without information cannot take responsibility; an individual who is given information cannot help but take responsibility (Nelson, 1997:44). For example, VITAL (Virtual Interactive Teaching at Liverpool) is the University of Liverpools online learning environment. It enables quick and easy access to course materials and provides communication tools such as discussion boards, virtual chat and announcements. It is the best source for the students of University of Liverpool because it provides all the information about their lectures, courseworks and task, and they can keep in touch with their module coordinators. VITAL is an investment that is worth the money spent. The collection of employees suggestions is the most appropriate way to involve all the members of the organization in running the business. It is important for them to know that their managers pay attention to workers ideas because these suggestions can make enormous difference (Nelson, 1997: 48). In one year, employees at Hughes Aircraft in Los Angeles generated more than 23, 000 ideas. The companys management demonstrated its respect for its employees by adopting most of them resulting in savings of $477 million (Nelson, 1997 : 49). According to Bob Nelson (1997), empowerment can energize employees and motivate them perform exclusively. To empower workers means to give them the independence and autonomy in making their own decisions when a specific task needs to be done. This strategy would help them feel that they are significant part of the corporation and are trusted. Moreover, employees are able to make better decisions because no one knows better what their job is all about and what it needs to be improved. Generally, people know what they are looking for from empowerment a flexible, fast-moving organization that is responsive to change (Danby, 1992: 1). Nurses at San Diegos Mercy Hospital have been giving the authority to perform patient-related tasks, such as drawing blood and performing EKGs (Electrocardiography), formerly reserved for specialized technicians. This approach has energized the nurses and improved patient care and has allowed management to cut six or seven layers of supervision down to three or four, and collapse thirty-five separate job descriptions down to only four (Nelson, 1997 : 24). The disadvantage of empowerment is that not every single person can be reliable. Not all the employees will behave in the corporations interests. However, the successful manager will always recognize the employees who can be trusted. Workers should not be scared of punishment because of mistakes. Think about an employees particularly tough day maybe he is getting late to work because of annoying traffic jam; probably as soon as he arrives at the workplace, he realizes he forgot to take his laptop with him (and he was supposed to present a new project to his colleagues and managers the same day); a couple of hours later a customer decided to vent his or her anger at the worker. Just when it seemed that all was lost, his boss dropped by to thank him for doing a terrific job on an assignment that he is particularly proud of, and mentioned that his project can be introduced the next day. Suddenly, the employees troubles with the traffic jam, the laptop, and the customer were forgotten replaced with the personal satisfaction of being recognized for a job well done (Bob Nelson, 1997). The good manager realizes that employees are not robots. To err is human, to forgive is divine. An employee in a constant fear of maki ng mistakes will probably suffer from work stress and exhaustion by his job (Brun and Cooper, 2009). Treating Employees as an Economic Resource Some argue about the idea of employees treated as assets. It can be seen demeaning for humans to be listed as an economic resource. However, others think that treating human beings as assets will help bring to the attention of managers the significance of developing this asset (Atril and McLaney, 2011:482). As Torrington put it: Managing resourceful humans requires a constant balancing between meeting the human aspirations of the people and meeting the strategic and financial needs of the business (Torrington et al, 2005: 4) Treating employees as valuable assets should combine two types of fundamentalism: people and shareholder value. Friedman et al. (1999) argued that people are not our greatest assets as Michael Hammer suggested. For Friedman et al., employees become more valuable when we invest in them, and we can evaluate returns on that investment (p3). If you treat people as assets, they will generate wealth. Unfortunately, few organizations have placed the same amount of attention to understanding and tracking the human resources as they do in the tracking of financial and tangible assets. The problem is that the corporation often invests little time in understanding the nature of their intellectual capital. As Gordon Petrash, Director of Intellectual Capital at Dow Chemical, says if it can be visualised it can be measured and if it can be measured it can be managed (Mayo, 2000). By placing human beings in the asset section, managers can measure the profit, which the business generated, even better How human capital contributes to value? Evaluating human capital is not an easy task. The more we see employees as the key driving force of value, the more crucial is to understand the balance of assets they comprise and how these can be grown. People can be stuck doing the same tasks they did yesterday, with the same level of knowledge. They can add value to the business day by day, but it may be the same value. On the other hand, people can experience different learning each day, as they grow, innovate and contribute more, pursuing the self-achievement level of the Maslows hierarchy of needs.(Mayo, 2000) If companies take care of their employees they will respond by taking care of the customers, that means that customers will come back and, therefore organizations will generate profit. The first step toward achieving the strong and productive departmental structure is to build a solid foundation; one that can support the departmental structure, a supervisor wants to create (Grossman, Jack H.; Parkinson, J Robert; 2001: 25). Managers should not overstate the human factor or understate the asset factor because they are interrelated in every single aspect. The key to the successful management is to find the balance between treating workers as human beings AND as economic resources.