Sunday, February 21, 2010

Productivity & Job Satisfaction

Productivity and job satisfaction have been debated over and over. But, we seem to forget the lessons the debate has taught us. We seem to be too busy chasing "new" stuff, to strut our bonhommie, to "polish the brass while the ship is sinking."

My recollection of the debate is as follows. Organizations can choose one of the four outcomes, each with distinct consequences. We have four general options to choose from:

1. An environment where productivity and job satisfaction are high.
2. An environment where productivity is high but job satisfaction is low.
3. An environment where productivity is low but job satisfaction is high.
4. An environment where both productivity and job satisfaction are low.

We will all agree that the fourth option is a non-starter since it is apparent that it is a lose-lose proposition. But, there are advocates for option 2. They are motivated by the short term gain. Often that is the goal of many turn-around initiatives: To prove the initiative has achieved its intended results. Option 3 is often pursued to stem morale problems that make the organization vulnerable to unionization or in response to confrontation from disaffected unions.

Intuitively managers know that job satisfaction per se does not increase productivity. All the research studies I have seen validate this point. But there are studies that point out a correletion between dissatisfaction and long term productivity. Dissatisfied employees have a way to vote with their feet, to do enough to get by, to clog the grievance process, to offer passive resistance. These behaviors do impact productivity.

While there might not be any evidence that happy cows give better milk, there is ample evidence that unhappy cows will gore you. This is how I have explained the negative correlation between productivity and job satisfaction over the years. And, yes, people get it when explained in this way.

During the past 10 years we have learned that job satisfaction is pointless unless it yields higher degrees of engagement. Engaged employees are those who are willing to go the extra mile to help the organization achieve its objectives. There is mounting evidence that organizations with high level of engagement enjoy higher productivity, increased retention, customer satisfaction, and loyalty.

The same can be said about customer satisfaction. What good is it to have satisfied customers if they are not loyal to your brand? We spend large sums of money chasing satisfaction rather than building customer loyalty. Example: I change cars every 3 years or so. I have bought in the past a Mercedes, an Infinity, a Jaguar, a Ford, etc., and I have been satisfied with each, but every 3 years or so I change brand because I am not loyal to any, just interested in trying different brands.

What distracts us from pursuing the longer term objective of creating organizations with a balanced purpose: higher productivity and higher job satisfaction? One of the distractions comes every time we fall in love with "what's new" and forget "what really works." Let me elaborate a bit more.

New is not necessarily better. Modern is not superior to classic; contemporary does not trump traditional. This observation is demonstrated vividly in the field of cooking. As an avid foodie myself, I observe that although we have many innovations in cooking, we still long for the way our grandmothers or mothers did it. Fast food, a rather modern way, is responsible for clogged arteries, obese children, and unheathy diet. But it has its vertues: it is fast and it is cheaper. The slow food movement is trying to go back to the traditional -- the way our ancestors did it, not the way McDonald, Burger King, KFC and othet popular fast food chains do it.

Americans have discovered that the traditional Mediteranean diet is superior to the fast food craze. Folks who live around the Mediteranean Sea have known that for more than 3,000 years. Indeed, new is not always better, just some time.

Enough about cooking. Let's reflect on ways we can humanize the workplace. Everyone has the right to enjoy their job, it does not matter how humble it might be. After all, we spend a good portion of our lives working.

Enjoy the journey along the learning curve. I welcome your comments and ideas.

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