Organizational Behavior Course Model

OB Outcomes: Attitudes and Behaviors

EffortJob SatisfactionAbsenteeismTurnoverStressWorkplace ViolenceOrganizational Citizenship

Behavior and CommitmentEmployee TheftSafety and AccidentsSexual HarassmentGrievances

Influenced by Managers Using

Application of Individual Differences

• Perceptions• Attributions• Attitude change• Values• Personality

Group DynamicsReward SystemsJob DesignLeadership

Absenteeism “Facts”Paid absences are not universal

● 22% of FT and 74% of PT U.S. employees do not receive paid sick leave (2015). ~50% of small businesses

● Iowa: 33% of FT and 81% of PT employees have no paid sick leave

However, new state & city laws suggest change ● Firms > 50, CT, DC and CA require 5-6 paid sick

days. ● Cities mandating: San Francisco, Seattle, Portland, New York City

Absenteeism “Facts”Financial cost estimates are highly variable as“paid leave costs” can entail vacation ● Absenteeism costs range from 1-15% of payroll.

Health care higher due to higher absences.

Can necessitate temporary or surplus employees, affect customer service

Shareholders/Boards of Directors expect control

Absenteeism IssuesWhat is excessive? Multiple metrics:• Number of sick days used

- Dept. of Labor: Mean is 8 days

- Iowa data suggests people use half• Changes in absence rates (Hours absent as a

percent of hours usually worked) Range: 1.9% in 2003 to 3.1% in 2008; 2.9% 2014

Tends to be lower in bad economic times, higher in good times; higher in public sector (4%) than in private sector (3%). > 3% usually viewed as excessive

ABSENTEEISM COSTS (lower level employee)

1. Salary ($13.49/hour) $107.86

2. Benefits 30.423. Replacement employee

(cross-training, temp help, supervision, overtime)

11.08

4. Unabsorbed burden (unused equipment, rent, light, in-efficient use of materials)

73.30

5. Loss profit contribution (value added) 88.51$311.16

Focus: Managing Voluntary Absenteeism • Determining what

percent of absence is voluntary (avoidable) and what is non-voluntary is tricky

• Experts believe 40% is voluntary and 60% is non-voluntary (e.g., personal or family illness)

• 40% may be the “max” managers can affect

Summarizing: Separating Voluntary & Nonvoluntary Absence

• May be contingent on empowerment (discretion) of supervisors

• Absence policies remain ambiguous a. Personal/dependent illness

b. Gray areas: relative illness, business affairs, lack of transportation, “domestic maintenance”

c. Truly discretionary: take a day off, wedding, special event

Summarizing: Separating Voluntary & Nonvoluntary Absence

• Explains popularity of PTO (Paid Time Off) and “no fault” absence policies. SHRM: 33% of firms in 1997, 51% of firms in 2012

• 2014 norms: 29% private industry workers covered by “consolidated leave plans”. Average 23 days/year after 10 years of service

•Recordkeeping time frames dependent on magnitude of the problem (from no tracking to yearly, to quarterly, to monthly)

Absenteeism Measures

1. Frequency Measure: total # of times/period absent ( 4)

2. Severity Measure: total # of days/period ( 7) (most common)

3. Attitudinal Measure: Frequency of 1 day absences (2)

4. Medical Measure: Frequency of > 3 day absences (1)

5. Worst Day: # people absent on any given day (e.g., Monday)

February S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 1415 16 17 18 19 20 2122 23 24 25 26 27 28

March

1 2 3 4 5 6 7 8 9 10 11 12 13 1415 16 17 18 19 20 2122 23 24 25 26 27 2829 30 31

April 1 2 3 4 5 6 7 8 9 10 1112 13 14 15 16 17 1819 20 21 22 23 24 2526 27 28 29 30

3. Personal Characteristics -Education -Family -Org. tenure responsibility -Age (also depends -Family size on sex) -Personality

2. Recruitment + Selection Job expectations about Attendance

7. Ability to Attend -Health (Depression, pain cardio fitness, smoking, drug use) -Illness & accidents -Family responsibilities -Transportation problems -Travel distance

1. Job Situation -Job autonomy -Job level -Work group size -Role Stress -Considerate leadership -Coworker relationships -Scheduling (flexible best)

4. Job Attitudes -Job satisfaction -Org. commitment -Job involvement

6. Attendance Motivation

8.Employee Absenteeism (Attendance)

5. Pressures to Attend -Economic/market conditions -Human Resource Practices (incentives, control policies) -Work group norms/culture -Profit sharing/employee share ownership

Model of Employee Absenteeism

Review of Absenteeism Model

• Box 8: Employee Absenteeism or Attendance• Box 1: Job Situation ↑ Job autonomy → ↓ Absenteeism• Box 2: Recruitment and Selection• Box 3: Personal Characteristics (next slide)• Box 4: Job Attitudes• Box 5: Pressures to Attend (next slide)• Box 6: Attendance Motivation• Box 7: Ability to Attend

Personal Characteristics (Box 3)

• Education: No consistent pattern

• Org tenure: ↑ Tenure → ↓ Absenteeism

• Age: Younger more short term; older more long term. Age/sex: Men: ↑ Age → ↓ Absenteeism Women: No relationship

• Family responsibility: Parental status and elder care issues (by 2020 1 in 3 will have the latter; boxes 3 & 7)

• Family Size: ↑ Size → ↑ Absenteeism

Personality(Box 3)

• ↑ Conscientiousness → ↓ Absenteeism • ↑ Extroversion → ↑ Absenteeism

• ↑ Anxiety/depression → ↑ Absenteeism

Human Resource Practices for Managing Absenteeism

• Review incentive systems like lotteries (nurse example)

• Be willing to modify practices over time

• Determine whether cost/benefit of incentives are consistent with organizational culture

Human Resource Practices for Managing Absenteeism (Box 5 continued)

• Work group norms and culture

• Profit sharing; employee ownership

Family Responsibilities: Examples of Costs Associated with Eldercare

● Absenteeism ● Workday interruptions ● Going part-time ● Eldercare crisis● Supervisor time ● Taking unpaid leave● Replacing the 9% of workers who quit

Solutions: subsidizing in-home care for employee’s dependent, referral services to caregivers and nursing homes, providing extended leaves of absence.

Be “employee need specific”: Japanese heartache leave

RECOMMENDATIONS FOR INCREASEDUNDERSTANDING OF ABSENTEEISM

1. Use standardized measures and time frames

2. Study attendance

3. Study white collar absenteeism

4. Examine how other HR practices affect absenteeism

5. Encourage health

6. Engage in more creative thought

Effects of Various Human Resource Practices on Reducing Absenteeism

Method # of Studies Effect

Well Pay (unused sick leave) 4 High

Flextime 10 High

Compressed work schedules 5 Medium

Discipline 12 Medium

Recognition 6 Medium

Health wellness programs 6 Low

Other financial incentives (bonus) 7 Low

Games 6 Low

Profit sharing/employee ownership 1 ??? (+)

Team/group reward systems ?? ???

PTOs, time-off banks ?? ???

Effects of Various Human Resource Practices on Reducing Absenteeism: HR Professionals

Method % of Companies Effectiveness Rating using

(1-5 very effective)Well Pay (Buy back unused sick leave) 53 3.4

Verification of illness 74 3.2

No-fault 59 2.9

Disciplinary action 89 3.4

Personal recognition 57 2.6

Part of yearly performance review 82 2.9

Bonus 51 3.3

Paid-leave banks (PTO) * 60 3.6

*PTO may not decrease absenteeism, just make it more planned.

PRACTICAL STRATEGIES FORREDUCING ABSENTEEISM

1. Increase job satisfaction/autonomy via a. Job redesign c. Decreased stress b. Supervision d. Flexible schedules 2. Use motivation strategies more frequently and creatively a. Operant conditioning b. Goal setting

3. Use work group dynamics a. Small groups b. Promote attendance norm; tie to rewards?