Description
Employee satisfaction and commitment have become more recognized as important in recent years for organizational success. Retaining key employees has become a problem in organizations today (Kaye & Jordan-Evans, 2001). A solution to the problem will lead to an organization that is effective and profitable and employees that are happier and more productive.
A Content Analysis of How Participatory Decision Making and Teamwork Affects
Employee Satisfaction and Employee Commitment
by
Marissa J. Tarara
A Research Paper
Submitted in Partial Fulfillment of the
Requirements for the
Master of Science Degree
In
Training and Development
Approved for Completion of 4 Semester Credits
The Graduate School
University of Wisconsin-Stout
October, 2005
The Graduate School
University of Wisconsin Stout
Menomonie, WI 5475 1
ABSTRACT
Tarara Marissa J.
(Writer) (Last Name) (First Name) (Middle Initial)
A Textual Analysis of How Participatory Decision Making and Teamwork
Affects Employee Satisfaction and Employee Commitment
(Title)
Training and Development, Kari Dahl, August 4,2005,40 pages
(Graduate Program) (Research Advisor) (Monthly ear) (# of Pages)
American Psychological Association (APA)
(Name of Style Manual Used in this Study)
Nine organizations were investigated that were chosen in Fortune's (2005) "Top
100 Companies to Work For" to identify if participatory decision-making and teamwork
were two characteristics that affect employee satisfaction and employee commitment.
The organizations investigated were Wegrnans Food Markets, Starbucks, Valero Energy,
W.L. Gore, Genentech, J.M. Smucker, Republic Bancorp, Xilinx, and Griffin Hospital.
A content analysis was done to research if the listed organizations support a culture that
implements participatory decision-making and teamwork. Twenty-eight articles from all
of the organizations were read. Words andfor phrases that are associated with
participatory decision-making and teamwork were highlighted. Participatory decision-
making was identified seventy-two times in the articles and teamwork was identified fifty
times. Results suggested that both participatory decision-making and teamwork are
characteristics that the investigated organizations supported in their culture. Therefore
this research suggested they do have an affect on employee satisfaction and employee
commitment.
Acknowledgments
I would like to thank Kari Dahl, my research advisor, for all of her assistance and
guidance that she has provided for me in not only my research paper, but as a graduate
student in the Training and Development area of study.
TABLE OF CONTENTS
............................................................................................................................... Page
. .
ABSTRACT ................................................................................................................ 11
. .
List of Tables ............................................................................................................ vll
............................................................................................... Chapter I: Introduction 1
.......................................................................................... Statement of the Problem 2
Purpose of the Study ............................................................................................... 2
.......................................................................................... Assumptions of the Study 2
Dejnition of Terms ................................................................................................. 3
Methodology ............................................................................................................. 3
Chapter 11: Literature Review ..................................................................................... 5
....................................... Employee Satisfaction and Employee Commitment 5
............................................................. Participatory Decision-Making 10
...................................................................................... Teamwork 14
.................................................................... Chapter 111: Methodology 17
Subject Selection and Description ......................................................... 17
....................................................................................................... Instrumentation 21
Data Analysis .......................................................................................................... 23
Limitations ............................................................................................................ 23
Chapter IV: Results ................................................................................................... 25
Item Analysis ........................................................................................................... 25
Chapter V: Discussion .............................................................................................. 30
Limitations .............................................................................................................. 3 1
Conclusions ............................................................................................................ 32
Recommendations ................................................................................................... 33
.................................................................................................................
References 35
List of Tables
.........................................................
Table 1 : The Organizations Investigated 17
......................................... Table 2: Examples of Terms Identified in the Articles 22
........................ Table 3: Breakdown of Companies and Number of Terms Identified 25
Chapter I: Introduction
Employee satisfaction and commitment have become more recognized as
important in recent years for organizational success. Retaining key employees has
become a problem in organizations today (Kaye & Jordan-Evans, 2001). A solution to
the problem will lead to an organization that is effective and profitable and employees
that are happier and more productive. It is to the benefit of the organization that their
employees feel satisfied and committed to their company. Committed employees are
likely to stay employed at that organization, which has an impact on the bottom line of
the company (Kaye & Jordan-Evans, 2001). There are high costs that an organization is
faced with each time that an employee leaves their company including the money that it
takes to replace the employee as well as the loss of input and experience that the
employee brought to the organization. The cost of replacing lost talent is 70 to 200
percent of each lost employee's annual salary (Kaye & Jordan-Evans, 2001).
Research shows that employees want to be a part of a team and they want to be
more involved with decision-making (Faiello, 2000). When employees have the
opportunity to participate in decision-making processes, it provides them the opportunity
to influence decisions and their outcomes for that organization. This method shows
people that they are respected and trusted. Teamwork is one strategy of decision-making
that organizations can implement. Employees that work in teams are expected to take on
a larger amount of responsibility and make informed decisions. Organizational efficiency
and employee satisfaction are complemented by the use of teams (Scott & Harrison,
1997).
Statement of the Problem
"Once an organization has captured talented people, its best return on investment
requires closing the back door to prevent them from walking out" (Kaye & Jordan -
Evans, 2001, p. 6). For that reason, it is important to identify what makes employees
satisfied and committed. Participatory decision-making and teamwork are two
characteristics that are found to affect employee satisfaction and employee commitment
(Black & Gregersen, 1997; Scott & Harrison, 1997). This research investigates these two
characteristics within organizations that are known as the best organizations to work for
as stated by Fortune Magazine (2005).
Purpose of the Study
The purpose of this study is to help organizations identi6 methods that they can
use that will have a positive impact on the feelings that their employees have about their
organizations. Businesses that do not have healthy organizational cultures can recognize
ways to improve the day-to-day culture of their company. Encouraging the input of
employees through participatory decision-making and teamwork are two methods that the
organizations can implement to start improving the culture of their business (Black &
Gregersen, 1997; Scott & Harrison, 1997).
Assumptions of the Study
Based on the literature review, it is assumed that cultures that encourage
participatory decision-making and teamwork affect employee satisfaction and
commitment. The organizations are recognized as one of the best organizations to work
for, as determined by Fortune Magazine (2005), because of the financial success that
they have had, and because their employees are satisfied. The employees willingly
shared information about the culture of their organizations, which resulted in that
organization being chosen as a top business to work for.
DeJinition of Terms
Employee Satisfaction. When an employee believes that the "organization will be
satis@ing in the long run, care about the quality of their work, and are more
committed to the organization" (Bavendam, 2000, p. 1).
Employee Commitment. The psychological identification an individual feels
toward his or her employing organization (Mowday, Porter, & Steers, 1982).
Participatory Decision-Making. When organizations directly delegate to non-
management a significant amount of decision-making authority (Hickey &
Casner-Lotto, 1998).
Teamwork "A workgroup with a common purpose through which members
develop mutual relationship for the achievement of goals andfor tasks" (Harris &
Harris, 1996, p. 23)
Methodology
Nine successful organizations fiom Fortune's (2005) "Top 100 Companies to
Work For" were investigated to identi@ if participatory decision-making and teamwork
were two characteristics identified to affect employee satisfaction and commitment. A
content analysis was conducted to identi@ the characteristics that are evident among the
culture of the organizations. Articles that contained information about each of the
organizations and the culture that they possess were read and analyzed through the
process of a content analysis.
Key terms were identified by the researcher that was interpreted to be
characteristics of participatory decision-making and teamwork. Literature of the nine
organizations was reviewed and an investigation for the key terms was conducted to
identi& if participatory decision-making and teamwork were two methods that were
evident in the organizations that are known as the best organizations to work for.
A coding method was used that identified the key terms relating to participatory
decision-making and teamwork within the articles of the organizations. Words, phrases,
and sentences that were in relation to participatory decision-making and teamwork were
highlighted with two specified colors. The researcher tallied up the number of times that
there was a marking (highlighting) with the two identified colors in each of the articles.
The total amount of times that participatory decision-making and teamwork were
identified within the articles indicated the significance of the two characteristics within
the specific organizations.
Chapter 11: Literature Review
Employee Satisfaction and Employee Commitment
Importance and Characteristics
Retaining key employees is a major problem in organizations. The issues of
employee satisfaction and commitment have become important in recent years. A
solution to this problem will lead to an organization that is "effective and profitable, and
employees that are happier and more productive" (Kaye & Jordan-Evans, 2001, p. 6).
Employees that have high job satisfaction tend to "believe that the organization
will be satisfying in the long run, care about the quality of their work, and are more
committed to the organization" (Bavendam, 2000, p. 1). According to Bavendam (2000)
there are six factors that influence employee satisfaction: opportunity, stress, leadership,
work standards, fair rewards, and adequate authority. When these six factors are greater,
jobs satisfaction is high (Bavendam, 2000).
Employee commitment can be identified as the psychological identification that
an individual feels toward his or her employing organization (Mowday et al., 1982).
When individuals feel as though the organization or teams they work for care about their
well-being, they are more inclined to reciprocate by putting forth great effort on its behalf
(Bishop, Scott, Goldsby, & Cropanzano, 2005). Gregory (2001) indicated five
characteristics which identified a loyal and committed employee. They are
one who is a team player, willing to make personal sacrifices for the good of
the company, they believe in the company's product or services, they will
recommend the company as one of the best places to work, and they are
prepared to stay at the company for at least the next several years, even if
offered a modest pay increase elsewhere (p. 17).
It is to the benefit of the organization that their employees feel satisfied and
committed to their company. Increasing job satisfaction is important for the
humanitarian value, and for the financial benefit (Bavendam, 2000). As previously
noted, the cost of replacing lost talent is 70 to 200 percent of each lost employee's annual
salary (Kaye & Jordan - Evans, 2001). That figure does not take into consideration the
loss of intellectual capital and accumulated experience that results from each departure
(Gregory, 2001).
"Once an organization has captured talented people, its best return on investment
requires closing the back door to prevent them from walking out" (Kaye & Jordan -
Evans, 2001, p. 6). For that reason, it is important to identify what makes employees
satisfied and committed. Organizations that have not been identified as top organizations
to work for can recognize ways to improve the organizational culture of their company
through those that have. Managers that have higher employee retention are often noted
as managers that tell the truth and provide feedback to their employees, they respect
differences and value diversity on their teams, and they give employees freedom to work
in their own creative way (Kaye & Jordan - Evans, 2001).
Research shows that employees want to be part of a team and they want to be
more involved with decision-making (Faiello, 2000). It was identified that in law
enforcement agencies, some of the most critical problems that contribute to low morale,
stress, and high turnover stems from the lack of employee involvement in the decision-
making process (Corsentino & Bue, 1993). The goal of this research is to investigate
participatory decision making and teamwork in the workplace to identify the effects that
these two categories have on employee satisfaction and employee commitment.
Opportunity, work standards and adequate authority are three of the six factors
mentioned above that increase employee satisfaction in relation to participatory decision
making and teamwork. Opportunity includes the "chance for employees to participate in
interesting projects, jobs with a satisfying degree of challenge and opportunities for
increased responsibility" (Bavendam, 2000, p. 2). Participating in projects and
challenging jobs allows the opportunity for employees to be involved in challenging
decisions and work in teams. Work standards are explained as the "entire workgroup
taking pride in the quality of its work" (Bavendam, 2000, p.2). Organizations need to
encourage communication and develop meaningful measures of quality. Adequate
authority is allowing employees to have freedom and authority to do their jobs. This can
be done by "letting employees make decisions, allowing employees to have input on
decisions that affect them, and allowing employees to determine how their goals will be
achieved" (Bavendam, 2000, p. 2).
Successful Organizations
There are several organizations that are noted to have high employee satisfaction,
as well as employee commitment. In one article, a survey to identify employee
satisfaction in credit unions identified that the longevity of employees was noted to have
a higher level of satisfaction. This was because they worked there a number of years and
they have seen that the values and culture have stayed the same, and they are proud to
have contributed to the growth and success of the credit union (Libeman, 2004).
Sargento Foods Inc., a privately owned organization, has been successfid for over
50 years, being in competition with much larger companies. Sargento has a well-
documented track record of highly satisfied employees. The people and culture are a
core element for this company. This attitude started with the founder of Sargento Foods
Inc., who had a philosophy to "hire good people and treat them like family" (Gannon &
Sterling, 2004, p. 3 1). Sargento actively involves large numbers of people in strategy
development and day-to-day operational improvement initiatives. They involve 40 senior
and middle managers directly in development process decisions, and have "process
improvement" teams -that are focused on driving operational excellence (Gannon &
Sterling, 2004.) Sargento's high level of satisfaction by their employees has translated
into a much higher employee retention rate than comparable firms. Total turnover at
Sargento is 6.7 percent; the benchmark of manufacturers is 28 percent - which is more
than four times higher (Gannon & Sterling, 2004).
Finisar Corporation has been in business since 1988. In 2003, they reported their
second-highest revenue on record. When the company was started, they instilled a
principle similar to Sargento's goal: "hire really good people" ("How Finisar", 2003, p.
32). According to the CEO, Jerry Rawls, "any team you build is only as good as the
individual players.. .if you recruit good people, you can expect terrific performance" (p.
32). Teamwork is not just a catchphrase at Finisar Corporation. Whenever there is a
problem, a team of three to eight people are assigned to work on it. In regard to the
teams, Rawls said, "If you have one person in that group whose ego demands satisfaction
at the expense of the others, it will be a lousy experience for everybody else and not very
productive" ("How Finisar," 2003, p. 32). To continue to recruit successfid people and
keep their values alive, they describe their beliefs over and over again to their employees
and recruit people who share their commitment to the corporate values. Rawls "makes
sure to walk the talk every day" ("How Finisar," 2003, p. 32).
Organizations that focus on their employees just as much as they focus on their
customers tend to increase employee satisfaction, commitment, and organizational
success (Gannon & Sterling, 2004; "How Finisar," 2003; Patterson, 2005). Cary
Software is another successful company that takes pride in having good employees and
treating them right. James Goodnight, one of the founders and the CEO stated, "If you
treat employees as if they make a difference to the company, they will make a difference
to the company" (Patterson, 2005, p. 2). A spokesperson for the company stated, "We
believe if we take care of our employees they will take care of our customers and treat
them very well.. .If you want to create a long-term relationship with your customers, you
might want to start by creating a long-term relationship with your employees" (Patterson,
2005, p. 4).
"To have employees that are committed to the organization and to get teamwork,
that organization must deserve it; like respect, commitment must be earned" (Denton,
1987, p. 18). The Wal-Mart chain of discount stores is a company that has employee
commitment. The founder, Sam Walton, believes that "his employees make the
difference in the company's success" (Denton, 1987, p. 19). According to Denton, Wal-
Mart gets employee commitment in several ways. It makes sure to maintain close ties
between upper management and other personnel. Also, Wal-Mart puts an emphasis on
openly communicating information about both business and personal aspects of the
employees (Denton, 1987).
Open communication is also an important factor at Harte-Hanks Communication.
Their Personnel Director believes "every organization needs committed employees who
feel as though they are part of the organization" (Denton, 1987, p. 20). In one survey, 97
percent of the employees felt proud to be a part of the company. After every managers'
meeting, the minutes are posted for all of the employees to see. They also conduct
regular meetings to get input and opinions from all of their employees, not just upper
management (Denton, 1987).
Employee satisfaction and employee commitment can have long-term effects on
the success of the organization. As noted, the cost of replacing lost talent is 70 to 200
percent of each lost employee's annual salary (Kaye & Jordan - Evans, 2001). That
figure does not take into consideration the loss of intellectual capital and accumulated
experience that results from each departure (Gregory, 2001). For that reason, it is
important to know what factors play a role in the satisfaction and commitment of
employees. Companies can benefit by identifying the factors and working along with
employees to create a culture that allows employees to participate in decisions that affect
them, and work in teams to enhance their performance (Bavandem, 2000). The purpose
of this research is to investigate the areas of participatory decision making and teamwork
and see how they impact employee satisfaction and employee commitment.
Participatory Decision-Making
Importance and Characteristics
Several studies have suggested that there is a slight positive relationship between
the degree of participation and employee satisfaction (Black & Gregersen, 1997; French,
et al., 1960). It is argued that the reason for this is because of "value attainment7' (Black
& Gregersen, 1997). Employees are satisfied when they obtain what they desire fiom
their work environment. Employee participation in decision-making provides them with
the opportunity to influence decisions and their outcomes. It is not enough to simply
have the employees participate in the decisions. Employee satisfaction is a function of
"how much involvement" (p. 863) the employee has in decisions. Organizations that
genuinely allow for employee participation will directly delegate to non-management a
significant amount of decision-making authority that is commonly reserved for managers
(Hickey & Casner-Lotto, 1998).
There have been several recent reviews that have identified six specific
dimensions of participatory decision-making (PDM) (Black & Gregersen, 1997; Cotton,
Vollrath, Froggatt, Lengnick-Hall, & Jemings, 1988; Dachler & Wilpert, 1978; Miller &
Monge, 1986; Locke and Schwieger, 1979; Wagner & Gooding, 1987). A study done by
Black and Gregersen (1997) indicated that the degree of involvement can have a
significant impact on employee satisfaction. Individuals that were identified to have an
above-average level of involvement on the dimensions of participatory decision making
had significantly higher levels of employee satisfaction. These dimensions of PDM are:
"rationale, structure, form, issues, decision process, and degree of involvement" (Black
and Gregersen, 1997, p. 861).
Rationale. There are two basic rationales for participatory decision-making (Black &
Gregersen, 1997; Dachler & Wilpert, 1978). The first is that people have the right to
participate in decisions that affect their lives (Black & Gregersen, 1997). It is assumed in
this rationale that the individuals have the potential to participate intelligently. The
second rationale is that participatory decision-making is an instrumental way to achieve
higher productivity, efficiency, profits and other valued organizational results. The
rationale of participatory decision-making can influence the other dimensions, such as the
structure (Black & Gregersen, 1997).
Structure. According to Black and Gregersen (1997) participatory decision-making can
range from formal to informal. A formally structured system has explicit rules and
procedures concerning who participates, what decisions employees participate in, and
how the participation occurs. An informal participatory decision-making system has
informal rules as to what can be discussed and who is allowed to participate. Formal
structures tend to be more common (Black & Gregerson, 1997).
Form. Black and Gregersen (1997) and other scholars have also identified that there are
two types of forms that are identified in participatory decision-making (Cotton et al,
1988; Dachler & Wilpert, 1978). Direct forms allow the participants to be involved
immediately in the decision-making process and they are allowed to present their
information, preferences, and opinions to the other members involved in the decision.
When there is a restricted set of individuals that are elected, rotated, or appointed as
representatives, it is known as an indirect form of participatory decision-making (Black
& Gregersen, 1997). Although individuals are allowed to present their information,
preferences, and opinions, they present them to a representative who then interacts with
the other representatives who then make the decisions (Black & Gregersen, 1997).
Issues. The issues that are being decided on are another component of participatory
decision-making. These issues include (a) work and task design, (b) working conditions,
(c) strategy issues, and (d) capital distribution and investment issues. It is suggested that
both "participant satisfaction and decision quality is a fhction of the knowledge
individuals involved in the decision bring to a particular issue (Black & Gregeren, 1997,
p. 862).
Degree of Involvement. Involvement is identified on a continuum indicated by Black and
Gregersen (1 997):
(a) no advance information concerning a decision is given to employees, (b)
employees are given advance information, (c) employees are allowed to provide
their opinion about the decision, (d) employees' opinions are taken into
consideration in making the decision, (e) employees can veto a decision, and ( f )
the decision is completely in the hands of the employees (p. 862).
Decision Process. The final dimension of the participatory decision making is the
decision process. Black and Gregersen (1 997) identified five distinct processes: "(a)
identifying problems or issues, (b) generating alternative solutions to the problem, (c)
selecting a specific solution, (d) planning the implementation of the selected solution, and
(e) evaluating the results of the implementation" (p. 863).
As noted above, the involvement of employees on decision-making has a positive
affect on employee satisfaction. In an article in the Fortune Magazine (March, 2005)
Herb Kelleher, the founder and chairman of Southwest Airlines stated:
People should be respected and trusted as people, not because of their position
or title.. .I'm very interested in their ideas. You don't have to have a doctorate
to have an idea. You ought to be open to listening to people. Show that you
care about them as individuals, not just as workers. (p. 1 16)
One way to show that people are respected and trusted is to let them be involved
and allow them to share their input and ideas when the decisions that are being made will
affect them. Organizations that truly encourage participatory decision-making are ones
that have a structure that makes employee involvement ongoing. Although it is not
essential for participatory decision-making, teamwork has become the favored strategy to
use (Hickey & Casner-Lotto, 1998). "Whether it is work planning, scheduling, or
operational decision-making, teams need access to information, skills in decision-making,
rewards to encourage decision-making, and the authority to make decisions" (Irwin &
Rocine, 1994, p. 14).
Teamwork
Importance and Characteristics
"The importance of teamwork, of an employee's commitment to a task and the
organization.. .is the key to productivity and is essential for improving quality" (Denton,
1987, p. 17). Organizational efficiency and employee satisfaction are complemented by
the use of teams (Scott & Harrison, 1997). Effective teamwork is identified as an
element of high-performing businesses. Businesses that continue to perform successfully
rely on teams as a part of their everyday operations (Tarricone & Luca, 2002).
According to Hickey and Casner-Lotto (1 998) teams are identified as a way to
organize and distribute responsibility, authority, and information otherwise given only to
supervisors and managers. Teams can respond quickly to the changes in business
demands when they have the decision-making authority and are allowed to share
information directly. Another definition of teams is a "workgroup with a common
purpose through which members develop mutual relationship for the achievement of
goals and/or tasks" (Harris & Harris, 1996, p. 23).
According to Tarricone and Luca (2002), teams are the management style of
choice when organizations want to implement a culture that is flexible. Employees of
this type of structure are expected to take on a larger degree of responsibility, make
informed decisions, and make use of their intellectual and creative skills (Wageman,
1997; Johnson, Heirnann, & O'Neill, 2000). Teams work under the premise that the
people that know how to best carry out and improve their own work are the teams
themselves (Scott & Harrison, 1997).
Tarricone and Luca (2002) identified that well designed business teams will help
organizations:
Minimize and reduce costs and number of employees
Increase profits and reduce the hierarchical structure of the business
Improve customer relationships and maintain a client focus
Increase employee motivation and commitment
Improve processes for the recognition of team and individual contribution
(P. 55)
There are five attributes to successful business teams (Tarricone & Luca, 2002).
They are: attitude (when a team and the team members have the right attitude and
perspective), uniqueness (team members each being responsible for the success of their
team by expressing, respecting and encouraging their own uniqueness and that of others),
communication (teams are dependent on cooperation and effective communication),
creativity (the environment should perpetuate and promote creativity; team members
should demonstrate leadership and creativity at all times), and finally, play (positive peer
relationship). It is noted that greater productivity and higher achievement, more caring
and committed relationships, and greater psychological health and self-esteem are results
of cooperation and having fun at work. "The most important lesson of teamwork is that
organizations that show employees respect, trust, and a desire for affiliation can create
resilient, powerfid communities of commitment, which can survive and flourish in
difficult environments" (Irwin & Rocine, 1994, p. 15).
Chapter 111: Methodology
According to the review of literature, employee satisfaction and employee
commitment are important. They motivate employees and tend to create longevity in the
workplace. Participatory decision-making and teamwork are two characteristics that are
found to have a positive impact on employee satisfaction and employee commitment. To
investigate these characteristics, a content analysis was done to identify if participatory
decision-making and teamwork are evident in the organizations that are known to be
great places to work. This chapter explains the organizations that were researched and
the method used to investigate those organizations.
Subject Selection and Description
Table 1
Nine successful organizations fiom Fortune 's (2005) "100 Best Companies to
Work For" were selected to be investigated to identify if participatory decision-making
and teamwork are two of the characteristics identified to impact employee satisfaction
and employee commitment. Three sizes of organizations were identified: Large
Companies that have 10,000 + employees; Midsized Companies that have 2,500 to
10,000 employees; and Small Companies that have 1,000 to 2,500 employees (Fortune,
9 Organizations chosen from Fortune Magazine, January, 2005
Small Companies
(1,000 to 2,500 employees)
Republic Bancorp, Owosso, MI
Xilinx, San Jose, CA
Griffin Hospital, Derby, CT
Large Companies
(10,000 + Employees)
Wegmans Food Markets, Rochester, NY
Starbucks, Seattle, WA
Valero Energy, San Antonio, CA
Midsized Companies
(2,500 to 10,000 employees)
W.L. Gore, Newark, DE
Genentech, San Francisco, CA
J.M. Smucker, Orrville, OH
2005, p. 72). In order to obtain a perspective of all organizational sizes in this study,
three organizations from each area (large, midsized, and small companies) were chosen to
investigate if employee satisfaction and commitment is consistent among all sizes of an
organization (see Table 1) (Fortune, 2005, p. 86).
The researcher chose organizations from the Fortune (2005) Magazine because of
the way the organizations are evaluated in order to be selected as "top companies to work
for" to be in the magazine. Two-thirds of the total score that gives the organizations
ranking in the magazine comes from an evaluation that is distributed randomly to
employees of the companies. They are asked questions on topics such as "attitudes
toward management, job satisfaction, and camaraderie" (Fortune, 2005, p. 97). The
opinion that the employees have about their organizations plays a significant role in
getting the organization on the list of the "100 Best Companies to Work For."
For most of the organizations, this is not the first time that they have been chosen
by Fortune (2005) as one of the top organizations to work for. Wegmans Food Markets
has been chosen to the magazine's Hall of Fame for being on the list since the beginning
("Wegmans ranks," 2005). Wegmans is a privately held retail supermarket located on the
east coast that has been in business since 1922. The company recognizes the good in its
employees. It has a unique motto: "Employees first, customers second" (Levering and
Milton, 2005, p. 73). The current chairman, Robert Wegman, stated "No matter how
much we invest in our people we get much more in return" ("Wegrnans ranks," 2005,13).
The Starbucks Company refers to their workers as partners instead of employees.
They are always focused on the people that make up their work team. Opportunities to
develop skills, W e r careers, and achieve goals are provided by Starbucks to their
partners ("Career Center," 2005). Starbucks opened in 1971 in Seattle, Washington and
has grown to be the "worlds leading retailer, roaster, and brand of specialty coffee.. .in
North America, Europe, Middle East, Latin America and the Pacific Rim" ("Company
Profile," 2005).
This is the eighth consecutive year that W.L. Gore has been on the list in Fortune
Magazine (2005). It is one of four companies to be included in the three hardbound
rankings as well as the eight magazine articles that have been published by the authors
("Gore earns," 2005). It is a privately held manufacturing company that has been in
business since 1958. It has created leading technology products for electronics,
industrial, fabrics, and medical markets ("Gore earns," 2005). Management at W.L. Gore
is different. One example of this is that workers evaluate their fellow team members to
determine compensation; instead of being told what their compensation is (Levering and
Milton, 2005). Since the beginning, Gore has avoided a traditional hierarchy ("Fast
Facts," 2005).
The year 2005 is the seventh year in a row that Genentech has been on the list.
This company is part of the Biotechnology Industry that has been based out of San
Francisco, California. Genentech works hard to create an environment where their
employees enjoy coming to work every day ("Culture", 2005). They also know how to
thank their employees. To celebrate the launching of new drugs, the company once threw
their employees and their guests a party that had Elton John as the entertainment
(Levering and Milton, 2005).
Smuckers has been recognized consistently as one of the top 25 companies to
work for ("About Us," 2005). The company has been in business for over 100 years and
is currently the market leader in fi-uit spread, ice cream toppings, and more. The
company is based out of Orville, Ohio and continues to be successful because of their
five basic beliefs: quality, people, ethics, growth, and independence ("Our Basic," 2005).
Republic Bancorp is the third company on the list of top companies to work for.
This is the fifth year that Fortune (2005) has put them on the list ("Welcome to," 2005).
Republic Bancorp is based out of Owosso, Michigan, and does its core business under
Commercial Banking, Retail Banking, and Mortgage Banking. This company offers a
unique management approach because they allow the opportunity for each area to
develop their own culture ("Career Center," 2005).
Xilinx has been one of the top ten on the list for four years in a row. Xilinx is a
technology company that is known as being the leading supplier of programmable chips.
The company is based out of San Jose, California. The noted reason for making the list
this year is their "culture of innovation" (Xilinx jumps," 2005,72). It was stated that one
out of five of their employees holds a patent ("Xilinx jumps," 2005).
Griffin Hospital has been on the list for six years in a row. This hospital has
created a very unique and caring environment for the patients that they help. The patients
and employees alike, "have access to family-style kitchens with a meal service, strolling
musicians, chair massages, and no fluorescent lighting" (Levering and Milton, 2005, p.
86). Griffin's President, Patrick Charmel attributed the recognition in Fortune (2005) to
"the family of employees, volunteers, and medical staff who make the experience
exceptional for every user of Griffin Hospital" ("Griffin Makes," 2005,ji5).
Valero Energy has made the list every year since 1999 ("Valero Ranked," 2005).
Valero is based in San Antonia, California. It is an Oil Refining company that focuses in
marketing and retail, and has never laid off an employee (Levering and Milton, 2005, p.
73). It is one of the nation's largest retail operators. The company has a commitment to
community service "which employees are proud to be associated with" ("Valero
Ranked," 2005,jil).
Instrumentation
A content analysis was conducted to identifl the key characteristics among the
organizations. This method was chosen because it is a "technique that studies human
behavior in an indirect way: The analysis of written contents of a communication"
(Fraenkel & Wallen, 2000, p. 469). Articles within the organizations and some outside
perspectives that contained content about the culture of each organization and the
characteristics that it possesses were read. Once read, the articles were analyzed through
the process of a content analysis in terms of frequency counts. In this type of analysis,
concepts for coding are identified and coding categories are defined; a count is made of
the number of times the concepts that fit the categories are found within written
communications (Fraenkel & Wallen, 2000). A coding method was used that identified
the key concepts of employee satisfaction and commitment in relation to participatory
decision-making and teamwork.
Key terms were identified that were associated with either/or both participatory
decision-making and teamwork. Literature on the nine organizations was reviewed and
an investigation for the key terms was conducted to identi@ if participatory decision-
making and teamwork are methods implemented in the top organizations to work for.
The terms were chosen by the researcher on the basis of latent content. Latent Content
refers to the meaning that underlies what is said or shown (Fraenkel & Wallen, 2000).
Based on the review of literature, the researcher identified terms that would identify
participatory decision-making and teamwork in the articles. The articles that were read
and concepts that were identified were chosen based on the assumptions that the
researcher had made from the literature review to be a description of participatory
decision-making and teamwork.
Table 2
The researcher created a color coding system that was used during the review of
literature for the nine organizations. A highlighter of two identified colors was used
while reading through each of the articles. Phrases, sentences, paragraphs, or words that
related to the key terms identified under the two subjects (see Table 2) were highlighted
within the articles. After all of the articles were read, the researcher tallied the blue and
pink highlighted markings within the texts to come to a final count of the number of
times participatory decision-making and teamwork were identified in the texts.
EXAMPLES OF TERMS IDENTTFLED IN THE ARTICLES
Participatory Decision Making (Blue Highlighter)
Trust; Encourage employee input; Open
Communication; Decision Processes;
Responsibility; Management Structure; Freedom;
Empower; Equal player
Teamwork (Pink Highlighter)
Team atmosphere; Family approach;
Communication; Responsibility; Creativity;
Attitude; Self-Motivation; Flexible Management
Data Analysis
After reading the articles on each of the organizations, the characteristics of
participatory decision-making and teamwork characteristics that were identified through
the coding process were counted. The researcher predetermined a number of highlighted
sentences, phrases, paragraphs, or words that were to be within the text. That
predetermined number was identified as 20. There had to be 20 highlighting marks
within for both participatory decision-making and teamwork individually. If there were
20 or more highlighted sentences, phrases, paragraphs, or words in relation to
participatory decision-making andlor teamwork, then it is assumed that one or both are
indeed characteristics of the cultures that were being researched. Since these
organizations are already known as great places to work for, then it will be assumed that
one of the reasons they are a great place to work is because they encourage a culture that
practices participatory decision-making by their employees and implements a team-based
culture.
Limitations
One limitation of the study is the bias that the researcher could have on the
interpretation of the meaning of participatory decision-making and teamwork. To avoid
this limitation, the researcher chose the terms to look for in the articles based on the
literature provided. Another researcher may have chosen different terms to look for in
relation to participatory decision-making and teamwork. Also, the sentences, phrases,
paragraphs, and words that were highlighted in the articles were highlighted when the
text appeared to fit under the realm of the terms identified. Others may have interpreted
the text in a different context than that of the researcher.
A bias of the articles that were read is also a limitation of the study. The majority
of the articles came from within the organizations that were investigated. These articles
talk about the type of culture that they practice in their organizations. The articles could
have been written on the basis of what they try to practice in their culture, and not on the
basis of the type of culture that the employees may perceive the organization to have.
The researcher attempted to fmd articles that were written from a non-bias author. There
were not many articles available that were written from outside of the organizations.
The possibility of human error could also be identified as a limitation. Some
important text that was in relation to the subjects that were being investigated could be
missed. Also, there is a potential math error when the researcher added up the items that
were highlighted to see how many times there was a relation to participatory decision-
making and teamwork. This is an important part of the research because it determined if
employees of the chosen organizations were satisfied and committed due to the two
cultural characteristics being investigated. To avoid this limitation, the researcher read
the articles twice to be certain that important text was not overlooked. Also, the
researcher added up the items that were highlighted twice to avoid an error in the math.
Chapter IV: Results
The purpose of this study was to investigate the effects that participatory decision-
making and teamwork have on employee satisfaction and employee commitment.
Employee turnover costs the company 70 to 200 percent of the employee's annual salary
(Kaye & Evans, 2001). For that reason, it is important to identify what type of
characteristics that organizations could implement into their culture that could increase
the level of satisfaction that their employees have, which in turn could increase the
commitment that the employees have to that organization.
A content analysis was done to investigate the cultures of nine organizations
which were ranked as one of the best organizations to work for in Fortune Magazine
(2005). Terms that are associated with participatory decision-making and teamwork were
identified within the articles of the text by a coding method that was determined by the
researcher.
Item Analysis
Table 3
BREAKDOWN OF COMPANIES AND THE NUMBER OF TERMS IDENTIFIED
Company
Wegmans Food Markets
Starbucks
Valero Energy
W.L. Gore
Genentech
J.M. Smucker
Republic Bancorp
Xilinx
Griffin Hospital
TOTALS
Number of Articles
Read
5
3
4
4
2
2
3
3
2
28
Number of terms
identified for
Participatory Decision-
Making
1 1
6
1 1
17
9
0
3
8
7
72
Number of terms
identified for
Teamwork
4
1
I I
18
3
1
0
6
5
50
Twenty-eight articles about the organizations were read by the researcher. In
those articles, terms that were associated with participatory decision-making were noted
72 times and terms that were associated with teamwork were noted 50 times. Before the
content analysis began, the researcher set the minimum number of times that the two
terms were to be identified within the readings to be 20. Therefore, in general, all of the
organizations that were investigated practice a culture that supports both participatory
decision-making and teamwork which positively affects how the employees feel about
these organizations, as well as their commitment to the organization.
Participatory Decision-Making
Terms relating to participatory decision-making were more evident within the
contents of the articles (identified 72 times) than terms relating to teamwork (identified
50 times). In relation to participatory decision making, Wegmans stated, "We empower
our people to make decisions that improve their work and benefit our customers and
companies" ("Who We Are," 2005,111). An article about Starbucks mentioned, "We
strive to create a diverse workplace in which every partner's voice is heard" ("The
Starbucks," 2005,12). Valero has created a working environment of "mutual and equal
respect and appreciation for diversity ("Shared commitment," 2005,yl). They also see
their employees as their "number-one asset" ("Mission Statement, 2005,11 1).
Evidence of participatory decision-making was evident in the midsized companies
as well. At W.L. Gore, there "are no chains of command nor pre-determined channels of
communication.. .they communicate directly with each other" ("Corporate Culture,"
2005,72). Also, W.L. Gore (2005) works under four guiding principles, one of which is
the "Freedom to encourage, help, and allow other associates to grow in knowledge, skill,
and scope of responsibility" (75). Genentech gives their employees a "great deal of
freedom within company goals to apply their skills, knowledge and initiative to getting
things done" ("Culture," 2005,75).
Republic Bancorp hires employees who "want to make a real contribution" to
their success ("Career Center," 2005,73). Also, they have a management approach that
"allows the opportunity for each to develop its own culture" (74). Xilinx is another
smaller size company that has evidence of participatory decision-making in their articles.
"Our employees are the keys to our innovation. Such innovation relies on the personnel
policies that allow employees to make their own decisions and take risks.. .keeping
employees informed leads directly to innovation.. .and ultimately increase profits"
("Company Overview," 2005,78). Griffin has several practices that allow their
employees to give input to their organization. One example is the monthly motivational
programs that are held by employees. At those programs, employees are "encouraged to
voice their concerns and opinions" ("Employment Opportunities," 2005,719). Also,
"every employee is an equal player in creating a wonderful health experience for our
patients" (Employment Opportunities," 2005,72).
Teamwork
Although not as many terms were identified for teamwork in the content analysis,
there were enough to conclude that it is a practice used by organizations that are chosen
to be the best to work for. The researcher had predetermined the number of times for the
terms to be identified within the articles to be a minimum of 20. Fifty terms were
identified in relation to teamwork. "Wegmans believes in teamwork.. .every employee is
a member of the Wegmans family" ("Why we're," 2005,72). At Starbucks, they hire
"people who are adaptable, self-motivated, passionate, and creative team players"
("Career Center," 2005,f3). Valero believes that "all employees have a right to offer
input and be involved in helping their team grow.. .we expect that employees follow
Valero's vision for company, team and individual growth" ("Shared commitment," 2005,
Ti1).
Teamwork is also evident in the midsized companies. "At Gore you'll find direct
communication, a team orientation, and one title - associate - that's shared by
everyone.. .it's a culture that contributed directly to our success by encouraging creativity
and opportunity" ("Working at," 2005, f 1). Also, W.L. Gore "depends on small groups
of people working together to achieve common goals" ("Great Place," 2003, f 1). If one
was working at Genentech, they are ''working at a company that fosters a sense of
teamwork, and working with people who do their job with integrity and professionalism"
("Awards and," 2005,74). Smuckers have "very special people on their team" ("The J.M
Smucker," 2003,f2).
Xilinx's corporate culture "promotes teamwork and very open communication"
("Company Overview," 2005, f 8). Griffin Hospital attributes their recognition from
Fortune (2005) to "the talent, dedication, and enthusiasm of the entire Griffin family of
employees" (''Griffin makes," 2005,f5).
This study investigated the effects that participatory decision-making and
teamwork have on employee satisfaction and commitment. It costs companies 70 to 200
percent of the lost employee's annual salary (Kaye & Evans, 2001). It is important to
identify what type of characteristics can increase the level of employee satisfaction and
employee commitment. The results indicate that companies noted as top organizations to
work for implement teamwork and participatory decision-making into their everyday
environment. The implementation of these characteristics increase the organizations
level of employee satisfaction and commitment.
Chapter V: Discussion
The literature states that when an employee leaves an organization, the amount of
money that it takes to replace that employee is quite high. The cost of replacing that
employee is 70 to 200 percent of each lost employee's annual salary (Kaye & Jordan-
Evans, 2001, p. 17) There is also a loss of intellectual capital and experience that the
employee contributed to the organization. To have employees working for a company
they are committed to can positively impact the bottom line. If employees are committed
to your organization, they are also satisfied with your organization.
Two characteristics of an organization's culture that could have a positive impact
on employee satisfaction and employee commitment are participatory decision-making
and teamwork. Employees that work in these types of environments are more satisfied.
There is a positive relationship between the degree of participation and employee
satisfaction (Black& Gregersen, 1997; French et al, 1960; Patchen, 1970; Ross & Zander,
1957). Participatory decision-making allows employees the opportunity to influence
decisions that affect them and their outcomes. The use of teams affects organizational
efficiency and employee satisfaction (Scott & Harrison, 1997).
The purpose of this research was to identify if participatory decision-making and
teamwork are two characteristics that, in fact, do affect employee satisfaction and
commitment. A content analysis was conducted to identify if organizations known for
being one of the best organizations to work for implement a culture that practice the
above characteristics. After reading twenty-eight articles about nine organizations, terms
relating to participatory decision-making were found seventy-two times and terms
relating to teamwork were found fifty times. Indeed, the organizations that were
investigated encourage a culture that practices participatory decision-making and
teamwork. These cultures are one reason why those organizations are the best
organizations to work for.
Limitations
Three limitations were identified in this study. One limitation is that the
researcher may present a bias by the way the definitions of participatory decision-making
and teamwork are interpreted. To avoid this limitation, the terms that were looked for in
the articles that relate to the two culture characteristics were chosen by the researcher
based on the literature provided. Different terms may have been identified in relation to
participatory decision-making and teamwork if there had been input by another
researcher or a person outside of the study. Also, others may have interpreted the text in
a different context than that of the researcher while reading the articles about the
organizations. The sentences, phrases, paragraphs, and words that were highlighted
could have been quite different with another researcher.
The second limitation identified was that the majority of the articles used in the
content analysis were from the organizations that were being investigated, and not fiom
outside sources. This could create a false interpretation of what the culture of the
organization is actually like. Since the articles are written fiom within the organization,
they may promote a type of culture that the organization hopes to practice, and not
necessarily the type of culture the employees would say that the organization practices.
The researcher attempted to find articles that were written fiom a non-bias author. There
were not many articles available that were written fiom outside of the organizations.
The third limitation identified is that there is a possibility of human error. Text
that was important characteristics of either participatory decision-making or teamwork
could have been missed while the researcher was reading the articles. Another factor in
regards to human error is the potential for math error when the researcher added up the
mount of items that were highlighted within the text. This is an important part of the
research because it determined if employees of the chosen organizations were satisfied
and committed due to the two cultural characteristics being investigated. To avoid this
limitation, the researcher read the articles twice to be certain that important text was not
overlooked. Also, the researcher added up the items that were highlighted twice to avoid
an error in the math.
Conclusions
In Chapter 11, the literature review revealed that research has shown that both
participatory decision-making and teamwork have a positive impact on employee
satisfaction and employee commitment. Employees want to be heard and involved. This
research, like research of others did show that participatory decision-making and
teamwork do impact employee satisfaction and commitment.
Participatory decision-making was identified in the articles that were read about
the chosen organizations. The mount of involvement that employees are allowed to
have in regard to decision-making has an affect on employee satisfaction. The
organizations that were chosen to be investigated in this research showed that they
implemented a culture where they encouraged their employees to be involved in the
decisions that impact them and contribute positively to the well-being of the organization.
This researcher suggests the conclusion that employee involvement is one reason that the
organizations are chosen as one of the best organizations to work for.
Another reason for those organizations to be recognized as one of the best
organizations to work for is because of teamwork. It was mentioned in the literature
review that one benefit that a team-based structure can bring to the organization is an
increase in employee motivation and commitment. Also, businesses that continually
perform successfully tend to implement teams into their culture as a part of their
everyday operations. Based on the content analysis, this researcher identified that a
team-based structure is also a characteristic of the organizations chosen fiom the Fortune
Magazine (2005). Another reason that those organizations are chosen as one of the best
organizations to work for is because of the teamwork that they encourage within their
organizations and their culture.
Recommendations
In the future, research that focuses on the effects that participatory decision-
making and teamwork have on employee satisfaction and commitment should possibly
focus on either one or the other. Future research could focus on participatory decision-
making to come to more specific conclusions on how it impacts employee satisfaction
and commitment. As well, the same is for teamwork.
One possible way that more specific conclusions could occur is to conduct a case
study or assessment through surveys or focused interviews on one or a few organizations
to receive input from employees. The employees could explain exactly why these
characteristics make them more satisfied to be working where they are working. The
obvious reason is that they get the opportunity to make important decisions and be
recognized for their work and contribution that they give to the organization. Are there
other reasons that these characteristics increase the satisfaction and commitment level of
employees? Future research could investigate this.
There are two suggestions for a change in the methodology. One change in
practice suggested for the methodology of this research would be to have more than one
researcher involved in the content analysis. If there were two researchers, the list of
terms that were chosen to be items that describe participatory decision-making and
teamwork would be developed by both of the researchers. That way, there is more than
one person's input on the interpretation of the literature. This may result in the list of
terms used in the content analysis (see Table 2) to differ from the current list. Also, both
of the researchers would read copies of the articles included in the content analysis. A
discussion of the highlighted words, phrases, sentences, or paragraphs that each
researcher highlights would occur. This would help to decrease the limitation mentioned
in the article about the possible bias of interpretation that the researcher presents.
If future researchers choose to conduct a content analysis on this topic, another
suggestion is to focus on only one organization. As shown in Table 3, some
organizations had more evidence of participatory decision-making and teamwork than
others. Some organizations that were researched may indeed not necessarily practice a
culture of either participatory decision-making or teamwork. The terms of this
methodology has been set in a way that if the terms were identified in general 20 times or
more, then all organizations investigated were generalized to practice a culture of
participatory decision-making and teamwork.
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Employee satisfaction and commitment have become more recognized as important in recent years for organizational success. Retaining key employees has become a problem in organizations today (Kaye & Jordan-Evans, 2001). A solution to the problem will lead to an organization that is effective and profitable and employees that are happier and more productive.
A Content Analysis of How Participatory Decision Making and Teamwork Affects
Employee Satisfaction and Employee Commitment
by
Marissa J. Tarara
A Research Paper
Submitted in Partial Fulfillment of the
Requirements for the
Master of Science Degree
In
Training and Development
Approved for Completion of 4 Semester Credits
The Graduate School
University of Wisconsin-Stout
October, 2005
The Graduate School
University of Wisconsin Stout
Menomonie, WI 5475 1
ABSTRACT
Tarara Marissa J.
(Writer) (Last Name) (First Name) (Middle Initial)
A Textual Analysis of How Participatory Decision Making and Teamwork
Affects Employee Satisfaction and Employee Commitment
(Title)
Training and Development, Kari Dahl, August 4,2005,40 pages
(Graduate Program) (Research Advisor) (Monthly ear) (# of Pages)
American Psychological Association (APA)
(Name of Style Manual Used in this Study)
Nine organizations were investigated that were chosen in Fortune's (2005) "Top
100 Companies to Work For" to identify if participatory decision-making and teamwork
were two characteristics that affect employee satisfaction and employee commitment.
The organizations investigated were Wegrnans Food Markets, Starbucks, Valero Energy,
W.L. Gore, Genentech, J.M. Smucker, Republic Bancorp, Xilinx, and Griffin Hospital.
A content analysis was done to research if the listed organizations support a culture that
implements participatory decision-making and teamwork. Twenty-eight articles from all
of the organizations were read. Words andfor phrases that are associated with
participatory decision-making and teamwork were highlighted. Participatory decision-
making was identified seventy-two times in the articles and teamwork was identified fifty
times. Results suggested that both participatory decision-making and teamwork are
characteristics that the investigated organizations supported in their culture. Therefore
this research suggested they do have an affect on employee satisfaction and employee
commitment.
Acknowledgments
I would like to thank Kari Dahl, my research advisor, for all of her assistance and
guidance that she has provided for me in not only my research paper, but as a graduate
student in the Training and Development area of study.
TABLE OF CONTENTS
............................................................................................................................... Page
. .
ABSTRACT ................................................................................................................ 11
. .
List of Tables ............................................................................................................ vll
............................................................................................... Chapter I: Introduction 1
.......................................................................................... Statement of the Problem 2
Purpose of the Study ............................................................................................... 2
.......................................................................................... Assumptions of the Study 2
Dejnition of Terms ................................................................................................. 3
Methodology ............................................................................................................. 3
Chapter 11: Literature Review ..................................................................................... 5
....................................... Employee Satisfaction and Employee Commitment 5
............................................................. Participatory Decision-Making 10
...................................................................................... Teamwork 14
.................................................................... Chapter 111: Methodology 17
Subject Selection and Description ......................................................... 17
....................................................................................................... Instrumentation 21
Data Analysis .......................................................................................................... 23
Limitations ............................................................................................................ 23
Chapter IV: Results ................................................................................................... 25
Item Analysis ........................................................................................................... 25
Chapter V: Discussion .............................................................................................. 30
Limitations .............................................................................................................. 3 1
Conclusions ............................................................................................................ 32
Recommendations ................................................................................................... 33
.................................................................................................................
References 35
List of Tables
.........................................................
Table 1 : The Organizations Investigated 17
......................................... Table 2: Examples of Terms Identified in the Articles 22
........................ Table 3: Breakdown of Companies and Number of Terms Identified 25
Chapter I: Introduction
Employee satisfaction and commitment have become more recognized as
important in recent years for organizational success. Retaining key employees has
become a problem in organizations today (Kaye & Jordan-Evans, 2001). A solution to
the problem will lead to an organization that is effective and profitable and employees
that are happier and more productive. It is to the benefit of the organization that their
employees feel satisfied and committed to their company. Committed employees are
likely to stay employed at that organization, which has an impact on the bottom line of
the company (Kaye & Jordan-Evans, 2001). There are high costs that an organization is
faced with each time that an employee leaves their company including the money that it
takes to replace the employee as well as the loss of input and experience that the
employee brought to the organization. The cost of replacing lost talent is 70 to 200
percent of each lost employee's annual salary (Kaye & Jordan-Evans, 2001).
Research shows that employees want to be a part of a team and they want to be
more involved with decision-making (Faiello, 2000). When employees have the
opportunity to participate in decision-making processes, it provides them the opportunity
to influence decisions and their outcomes for that organization. This method shows
people that they are respected and trusted. Teamwork is one strategy of decision-making
that organizations can implement. Employees that work in teams are expected to take on
a larger amount of responsibility and make informed decisions. Organizational efficiency
and employee satisfaction are complemented by the use of teams (Scott & Harrison,
1997).
Statement of the Problem
"Once an organization has captured talented people, its best return on investment
requires closing the back door to prevent them from walking out" (Kaye & Jordan -
Evans, 2001, p. 6). For that reason, it is important to identify what makes employees
satisfied and committed. Participatory decision-making and teamwork are two
characteristics that are found to affect employee satisfaction and employee commitment
(Black & Gregersen, 1997; Scott & Harrison, 1997). This research investigates these two
characteristics within organizations that are known as the best organizations to work for
as stated by Fortune Magazine (2005).
Purpose of the Study
The purpose of this study is to help organizations identi6 methods that they can
use that will have a positive impact on the feelings that their employees have about their
organizations. Businesses that do not have healthy organizational cultures can recognize
ways to improve the day-to-day culture of their company. Encouraging the input of
employees through participatory decision-making and teamwork are two methods that the
organizations can implement to start improving the culture of their business (Black &
Gregersen, 1997; Scott & Harrison, 1997).
Assumptions of the Study
Based on the literature review, it is assumed that cultures that encourage
participatory decision-making and teamwork affect employee satisfaction and
commitment. The organizations are recognized as one of the best organizations to work
for, as determined by Fortune Magazine (2005), because of the financial success that
they have had, and because their employees are satisfied. The employees willingly
shared information about the culture of their organizations, which resulted in that
organization being chosen as a top business to work for.
DeJinition of Terms
Employee Satisfaction. When an employee believes that the "organization will be
satis@ing in the long run, care about the quality of their work, and are more
committed to the organization" (Bavendam, 2000, p. 1).
Employee Commitment. The psychological identification an individual feels
toward his or her employing organization (Mowday, Porter, & Steers, 1982).
Participatory Decision-Making. When organizations directly delegate to non-
management a significant amount of decision-making authority (Hickey &
Casner-Lotto, 1998).
Teamwork "A workgroup with a common purpose through which members
develop mutual relationship for the achievement of goals andfor tasks" (Harris &
Harris, 1996, p. 23)
Methodology
Nine successful organizations fiom Fortune's (2005) "Top 100 Companies to
Work For" were investigated to identi@ if participatory decision-making and teamwork
were two characteristics identified to affect employee satisfaction and commitment. A
content analysis was conducted to identi@ the characteristics that are evident among the
culture of the organizations. Articles that contained information about each of the
organizations and the culture that they possess were read and analyzed through the
process of a content analysis.
Key terms were identified by the researcher that was interpreted to be
characteristics of participatory decision-making and teamwork. Literature of the nine
organizations was reviewed and an investigation for the key terms was conducted to
identi& if participatory decision-making and teamwork were two methods that were
evident in the organizations that are known as the best organizations to work for.
A coding method was used that identified the key terms relating to participatory
decision-making and teamwork within the articles of the organizations. Words, phrases,
and sentences that were in relation to participatory decision-making and teamwork were
highlighted with two specified colors. The researcher tallied up the number of times that
there was a marking (highlighting) with the two identified colors in each of the articles.
The total amount of times that participatory decision-making and teamwork were
identified within the articles indicated the significance of the two characteristics within
the specific organizations.
Chapter 11: Literature Review
Employee Satisfaction and Employee Commitment
Importance and Characteristics
Retaining key employees is a major problem in organizations. The issues of
employee satisfaction and commitment have become important in recent years. A
solution to this problem will lead to an organization that is "effective and profitable, and
employees that are happier and more productive" (Kaye & Jordan-Evans, 2001, p. 6).
Employees that have high job satisfaction tend to "believe that the organization
will be satisfying in the long run, care about the quality of their work, and are more
committed to the organization" (Bavendam, 2000, p. 1). According to Bavendam (2000)
there are six factors that influence employee satisfaction: opportunity, stress, leadership,
work standards, fair rewards, and adequate authority. When these six factors are greater,
jobs satisfaction is high (Bavendam, 2000).
Employee commitment can be identified as the psychological identification that
an individual feels toward his or her employing organization (Mowday et al., 1982).
When individuals feel as though the organization or teams they work for care about their
well-being, they are more inclined to reciprocate by putting forth great effort on its behalf
(Bishop, Scott, Goldsby, & Cropanzano, 2005). Gregory (2001) indicated five
characteristics which identified a loyal and committed employee. They are
one who is a team player, willing to make personal sacrifices for the good of
the company, they believe in the company's product or services, they will
recommend the company as one of the best places to work, and they are
prepared to stay at the company for at least the next several years, even if
offered a modest pay increase elsewhere (p. 17).
It is to the benefit of the organization that their employees feel satisfied and
committed to their company. Increasing job satisfaction is important for the
humanitarian value, and for the financial benefit (Bavendam, 2000). As previously
noted, the cost of replacing lost talent is 70 to 200 percent of each lost employee's annual
salary (Kaye & Jordan - Evans, 2001). That figure does not take into consideration the
loss of intellectual capital and accumulated experience that results from each departure
(Gregory, 2001).
"Once an organization has captured talented people, its best return on investment
requires closing the back door to prevent them from walking out" (Kaye & Jordan -
Evans, 2001, p. 6). For that reason, it is important to identify what makes employees
satisfied and committed. Organizations that have not been identified as top organizations
to work for can recognize ways to improve the organizational culture of their company
through those that have. Managers that have higher employee retention are often noted
as managers that tell the truth and provide feedback to their employees, they respect
differences and value diversity on their teams, and they give employees freedom to work
in their own creative way (Kaye & Jordan - Evans, 2001).
Research shows that employees want to be part of a team and they want to be
more involved with decision-making (Faiello, 2000). It was identified that in law
enforcement agencies, some of the most critical problems that contribute to low morale,
stress, and high turnover stems from the lack of employee involvement in the decision-
making process (Corsentino & Bue, 1993). The goal of this research is to investigate
participatory decision making and teamwork in the workplace to identify the effects that
these two categories have on employee satisfaction and employee commitment.
Opportunity, work standards and adequate authority are three of the six factors
mentioned above that increase employee satisfaction in relation to participatory decision
making and teamwork. Opportunity includes the "chance for employees to participate in
interesting projects, jobs with a satisfying degree of challenge and opportunities for
increased responsibility" (Bavendam, 2000, p. 2). Participating in projects and
challenging jobs allows the opportunity for employees to be involved in challenging
decisions and work in teams. Work standards are explained as the "entire workgroup
taking pride in the quality of its work" (Bavendam, 2000, p.2). Organizations need to
encourage communication and develop meaningful measures of quality. Adequate
authority is allowing employees to have freedom and authority to do their jobs. This can
be done by "letting employees make decisions, allowing employees to have input on
decisions that affect them, and allowing employees to determine how their goals will be
achieved" (Bavendam, 2000, p. 2).
Successful Organizations
There are several organizations that are noted to have high employee satisfaction,
as well as employee commitment. In one article, a survey to identify employee
satisfaction in credit unions identified that the longevity of employees was noted to have
a higher level of satisfaction. This was because they worked there a number of years and
they have seen that the values and culture have stayed the same, and they are proud to
have contributed to the growth and success of the credit union (Libeman, 2004).
Sargento Foods Inc., a privately owned organization, has been successfid for over
50 years, being in competition with much larger companies. Sargento has a well-
documented track record of highly satisfied employees. The people and culture are a
core element for this company. This attitude started with the founder of Sargento Foods
Inc., who had a philosophy to "hire good people and treat them like family" (Gannon &
Sterling, 2004, p. 3 1). Sargento actively involves large numbers of people in strategy
development and day-to-day operational improvement initiatives. They involve 40 senior
and middle managers directly in development process decisions, and have "process
improvement" teams -that are focused on driving operational excellence (Gannon &
Sterling, 2004.) Sargento's high level of satisfaction by their employees has translated
into a much higher employee retention rate than comparable firms. Total turnover at
Sargento is 6.7 percent; the benchmark of manufacturers is 28 percent - which is more
than four times higher (Gannon & Sterling, 2004).
Finisar Corporation has been in business since 1988. In 2003, they reported their
second-highest revenue on record. When the company was started, they instilled a
principle similar to Sargento's goal: "hire really good people" ("How Finisar", 2003, p.
32). According to the CEO, Jerry Rawls, "any team you build is only as good as the
individual players.. .if you recruit good people, you can expect terrific performance" (p.
32). Teamwork is not just a catchphrase at Finisar Corporation. Whenever there is a
problem, a team of three to eight people are assigned to work on it. In regard to the
teams, Rawls said, "If you have one person in that group whose ego demands satisfaction
at the expense of the others, it will be a lousy experience for everybody else and not very
productive" ("How Finisar," 2003, p. 32). To continue to recruit successfid people and
keep their values alive, they describe their beliefs over and over again to their employees
and recruit people who share their commitment to the corporate values. Rawls "makes
sure to walk the talk every day" ("How Finisar," 2003, p. 32).
Organizations that focus on their employees just as much as they focus on their
customers tend to increase employee satisfaction, commitment, and organizational
success (Gannon & Sterling, 2004; "How Finisar," 2003; Patterson, 2005). Cary
Software is another successful company that takes pride in having good employees and
treating them right. James Goodnight, one of the founders and the CEO stated, "If you
treat employees as if they make a difference to the company, they will make a difference
to the company" (Patterson, 2005, p. 2). A spokesperson for the company stated, "We
believe if we take care of our employees they will take care of our customers and treat
them very well.. .If you want to create a long-term relationship with your customers, you
might want to start by creating a long-term relationship with your employees" (Patterson,
2005, p. 4).
"To have employees that are committed to the organization and to get teamwork,
that organization must deserve it; like respect, commitment must be earned" (Denton,
1987, p. 18). The Wal-Mart chain of discount stores is a company that has employee
commitment. The founder, Sam Walton, believes that "his employees make the
difference in the company's success" (Denton, 1987, p. 19). According to Denton, Wal-
Mart gets employee commitment in several ways. It makes sure to maintain close ties
between upper management and other personnel. Also, Wal-Mart puts an emphasis on
openly communicating information about both business and personal aspects of the
employees (Denton, 1987).
Open communication is also an important factor at Harte-Hanks Communication.
Their Personnel Director believes "every organization needs committed employees who
feel as though they are part of the organization" (Denton, 1987, p. 20). In one survey, 97
percent of the employees felt proud to be a part of the company. After every managers'
meeting, the minutes are posted for all of the employees to see. They also conduct
regular meetings to get input and opinions from all of their employees, not just upper
management (Denton, 1987).
Employee satisfaction and employee commitment can have long-term effects on
the success of the organization. As noted, the cost of replacing lost talent is 70 to 200
percent of each lost employee's annual salary (Kaye & Jordan - Evans, 2001). That
figure does not take into consideration the loss of intellectual capital and accumulated
experience that results from each departure (Gregory, 2001). For that reason, it is
important to know what factors play a role in the satisfaction and commitment of
employees. Companies can benefit by identifying the factors and working along with
employees to create a culture that allows employees to participate in decisions that affect
them, and work in teams to enhance their performance (Bavandem, 2000). The purpose
of this research is to investigate the areas of participatory decision making and teamwork
and see how they impact employee satisfaction and employee commitment.
Participatory Decision-Making
Importance and Characteristics
Several studies have suggested that there is a slight positive relationship between
the degree of participation and employee satisfaction (Black & Gregersen, 1997; French,
et al., 1960). It is argued that the reason for this is because of "value attainment7' (Black
& Gregersen, 1997). Employees are satisfied when they obtain what they desire fiom
their work environment. Employee participation in decision-making provides them with
the opportunity to influence decisions and their outcomes. It is not enough to simply
have the employees participate in the decisions. Employee satisfaction is a function of
"how much involvement" (p. 863) the employee has in decisions. Organizations that
genuinely allow for employee participation will directly delegate to non-management a
significant amount of decision-making authority that is commonly reserved for managers
(Hickey & Casner-Lotto, 1998).
There have been several recent reviews that have identified six specific
dimensions of participatory decision-making (PDM) (Black & Gregersen, 1997; Cotton,
Vollrath, Froggatt, Lengnick-Hall, & Jemings, 1988; Dachler & Wilpert, 1978; Miller &
Monge, 1986; Locke and Schwieger, 1979; Wagner & Gooding, 1987). A study done by
Black and Gregersen (1997) indicated that the degree of involvement can have a
significant impact on employee satisfaction. Individuals that were identified to have an
above-average level of involvement on the dimensions of participatory decision making
had significantly higher levels of employee satisfaction. These dimensions of PDM are:
"rationale, structure, form, issues, decision process, and degree of involvement" (Black
and Gregersen, 1997, p. 861).
Rationale. There are two basic rationales for participatory decision-making (Black &
Gregersen, 1997; Dachler & Wilpert, 1978). The first is that people have the right to
participate in decisions that affect their lives (Black & Gregersen, 1997). It is assumed in
this rationale that the individuals have the potential to participate intelligently. The
second rationale is that participatory decision-making is an instrumental way to achieve
higher productivity, efficiency, profits and other valued organizational results. The
rationale of participatory decision-making can influence the other dimensions, such as the
structure (Black & Gregersen, 1997).
Structure. According to Black and Gregersen (1997) participatory decision-making can
range from formal to informal. A formally structured system has explicit rules and
procedures concerning who participates, what decisions employees participate in, and
how the participation occurs. An informal participatory decision-making system has
informal rules as to what can be discussed and who is allowed to participate. Formal
structures tend to be more common (Black & Gregerson, 1997).
Form. Black and Gregersen (1997) and other scholars have also identified that there are
two types of forms that are identified in participatory decision-making (Cotton et al,
1988; Dachler & Wilpert, 1978). Direct forms allow the participants to be involved
immediately in the decision-making process and they are allowed to present their
information, preferences, and opinions to the other members involved in the decision.
When there is a restricted set of individuals that are elected, rotated, or appointed as
representatives, it is known as an indirect form of participatory decision-making (Black
& Gregersen, 1997). Although individuals are allowed to present their information,
preferences, and opinions, they present them to a representative who then interacts with
the other representatives who then make the decisions (Black & Gregersen, 1997).
Issues. The issues that are being decided on are another component of participatory
decision-making. These issues include (a) work and task design, (b) working conditions,
(c) strategy issues, and (d) capital distribution and investment issues. It is suggested that
both "participant satisfaction and decision quality is a fhction of the knowledge
individuals involved in the decision bring to a particular issue (Black & Gregeren, 1997,
p. 862).
Degree of Involvement. Involvement is identified on a continuum indicated by Black and
Gregersen (1 997):
(a) no advance information concerning a decision is given to employees, (b)
employees are given advance information, (c) employees are allowed to provide
their opinion about the decision, (d) employees' opinions are taken into
consideration in making the decision, (e) employees can veto a decision, and ( f )
the decision is completely in the hands of the employees (p. 862).
Decision Process. The final dimension of the participatory decision making is the
decision process. Black and Gregersen (1 997) identified five distinct processes: "(a)
identifying problems or issues, (b) generating alternative solutions to the problem, (c)
selecting a specific solution, (d) planning the implementation of the selected solution, and
(e) evaluating the results of the implementation" (p. 863).
As noted above, the involvement of employees on decision-making has a positive
affect on employee satisfaction. In an article in the Fortune Magazine (March, 2005)
Herb Kelleher, the founder and chairman of Southwest Airlines stated:
People should be respected and trusted as people, not because of their position
or title.. .I'm very interested in their ideas. You don't have to have a doctorate
to have an idea. You ought to be open to listening to people. Show that you
care about them as individuals, not just as workers. (p. 1 16)
One way to show that people are respected and trusted is to let them be involved
and allow them to share their input and ideas when the decisions that are being made will
affect them. Organizations that truly encourage participatory decision-making are ones
that have a structure that makes employee involvement ongoing. Although it is not
essential for participatory decision-making, teamwork has become the favored strategy to
use (Hickey & Casner-Lotto, 1998). "Whether it is work planning, scheduling, or
operational decision-making, teams need access to information, skills in decision-making,
rewards to encourage decision-making, and the authority to make decisions" (Irwin &
Rocine, 1994, p. 14).
Teamwork
Importance and Characteristics
"The importance of teamwork, of an employee's commitment to a task and the
organization.. .is the key to productivity and is essential for improving quality" (Denton,
1987, p. 17). Organizational efficiency and employee satisfaction are complemented by
the use of teams (Scott & Harrison, 1997). Effective teamwork is identified as an
element of high-performing businesses. Businesses that continue to perform successfully
rely on teams as a part of their everyday operations (Tarricone & Luca, 2002).
According to Hickey and Casner-Lotto (1 998) teams are identified as a way to
organize and distribute responsibility, authority, and information otherwise given only to
supervisors and managers. Teams can respond quickly to the changes in business
demands when they have the decision-making authority and are allowed to share
information directly. Another definition of teams is a "workgroup with a common
purpose through which members develop mutual relationship for the achievement of
goals and/or tasks" (Harris & Harris, 1996, p. 23).
According to Tarricone and Luca (2002), teams are the management style of
choice when organizations want to implement a culture that is flexible. Employees of
this type of structure are expected to take on a larger degree of responsibility, make
informed decisions, and make use of their intellectual and creative skills (Wageman,
1997; Johnson, Heirnann, & O'Neill, 2000). Teams work under the premise that the
people that know how to best carry out and improve their own work are the teams
themselves (Scott & Harrison, 1997).
Tarricone and Luca (2002) identified that well designed business teams will help
organizations:
Minimize and reduce costs and number of employees
Increase profits and reduce the hierarchical structure of the business
Improve customer relationships and maintain a client focus
Increase employee motivation and commitment
Improve processes for the recognition of team and individual contribution
(P. 55)
There are five attributes to successful business teams (Tarricone & Luca, 2002).
They are: attitude (when a team and the team members have the right attitude and
perspective), uniqueness (team members each being responsible for the success of their
team by expressing, respecting and encouraging their own uniqueness and that of others),
communication (teams are dependent on cooperation and effective communication),
creativity (the environment should perpetuate and promote creativity; team members
should demonstrate leadership and creativity at all times), and finally, play (positive peer
relationship). It is noted that greater productivity and higher achievement, more caring
and committed relationships, and greater psychological health and self-esteem are results
of cooperation and having fun at work. "The most important lesson of teamwork is that
organizations that show employees respect, trust, and a desire for affiliation can create
resilient, powerfid communities of commitment, which can survive and flourish in
difficult environments" (Irwin & Rocine, 1994, p. 15).
Chapter 111: Methodology
According to the review of literature, employee satisfaction and employee
commitment are important. They motivate employees and tend to create longevity in the
workplace. Participatory decision-making and teamwork are two characteristics that are
found to have a positive impact on employee satisfaction and employee commitment. To
investigate these characteristics, a content analysis was done to identify if participatory
decision-making and teamwork are evident in the organizations that are known to be
great places to work. This chapter explains the organizations that were researched and
the method used to investigate those organizations.
Subject Selection and Description
Table 1
Nine successful organizations fiom Fortune 's (2005) "100 Best Companies to
Work For" were selected to be investigated to identify if participatory decision-making
and teamwork are two of the characteristics identified to impact employee satisfaction
and employee commitment. Three sizes of organizations were identified: Large
Companies that have 10,000 + employees; Midsized Companies that have 2,500 to
10,000 employees; and Small Companies that have 1,000 to 2,500 employees (Fortune,
9 Organizations chosen from Fortune Magazine, January, 2005
Small Companies
(1,000 to 2,500 employees)
Republic Bancorp, Owosso, MI
Xilinx, San Jose, CA
Griffin Hospital, Derby, CT
Large Companies
(10,000 + Employees)
Wegmans Food Markets, Rochester, NY
Starbucks, Seattle, WA
Valero Energy, San Antonio, CA
Midsized Companies
(2,500 to 10,000 employees)
W.L. Gore, Newark, DE
Genentech, San Francisco, CA
J.M. Smucker, Orrville, OH
2005, p. 72). In order to obtain a perspective of all organizational sizes in this study,
three organizations from each area (large, midsized, and small companies) were chosen to
investigate if employee satisfaction and commitment is consistent among all sizes of an
organization (see Table 1) (Fortune, 2005, p. 86).
The researcher chose organizations from the Fortune (2005) Magazine because of
the way the organizations are evaluated in order to be selected as "top companies to work
for" to be in the magazine. Two-thirds of the total score that gives the organizations
ranking in the magazine comes from an evaluation that is distributed randomly to
employees of the companies. They are asked questions on topics such as "attitudes
toward management, job satisfaction, and camaraderie" (Fortune, 2005, p. 97). The
opinion that the employees have about their organizations plays a significant role in
getting the organization on the list of the "100 Best Companies to Work For."
For most of the organizations, this is not the first time that they have been chosen
by Fortune (2005) as one of the top organizations to work for. Wegmans Food Markets
has been chosen to the magazine's Hall of Fame for being on the list since the beginning
("Wegmans ranks," 2005). Wegmans is a privately held retail supermarket located on the
east coast that has been in business since 1922. The company recognizes the good in its
employees. It has a unique motto: "Employees first, customers second" (Levering and
Milton, 2005, p. 73). The current chairman, Robert Wegman, stated "No matter how
much we invest in our people we get much more in return" ("Wegrnans ranks," 2005,13).
The Starbucks Company refers to their workers as partners instead of employees.
They are always focused on the people that make up their work team. Opportunities to
develop skills, W e r careers, and achieve goals are provided by Starbucks to their
partners ("Career Center," 2005). Starbucks opened in 1971 in Seattle, Washington and
has grown to be the "worlds leading retailer, roaster, and brand of specialty coffee.. .in
North America, Europe, Middle East, Latin America and the Pacific Rim" ("Company
Profile," 2005).
This is the eighth consecutive year that W.L. Gore has been on the list in Fortune
Magazine (2005). It is one of four companies to be included in the three hardbound
rankings as well as the eight magazine articles that have been published by the authors
("Gore earns," 2005). It is a privately held manufacturing company that has been in
business since 1958. It has created leading technology products for electronics,
industrial, fabrics, and medical markets ("Gore earns," 2005). Management at W.L. Gore
is different. One example of this is that workers evaluate their fellow team members to
determine compensation; instead of being told what their compensation is (Levering and
Milton, 2005). Since the beginning, Gore has avoided a traditional hierarchy ("Fast
Facts," 2005).
The year 2005 is the seventh year in a row that Genentech has been on the list.
This company is part of the Biotechnology Industry that has been based out of San
Francisco, California. Genentech works hard to create an environment where their
employees enjoy coming to work every day ("Culture", 2005). They also know how to
thank their employees. To celebrate the launching of new drugs, the company once threw
their employees and their guests a party that had Elton John as the entertainment
(Levering and Milton, 2005).
Smuckers has been recognized consistently as one of the top 25 companies to
work for ("About Us," 2005). The company has been in business for over 100 years and
is currently the market leader in fi-uit spread, ice cream toppings, and more. The
company is based out of Orville, Ohio and continues to be successful because of their
five basic beliefs: quality, people, ethics, growth, and independence ("Our Basic," 2005).
Republic Bancorp is the third company on the list of top companies to work for.
This is the fifth year that Fortune (2005) has put them on the list ("Welcome to," 2005).
Republic Bancorp is based out of Owosso, Michigan, and does its core business under
Commercial Banking, Retail Banking, and Mortgage Banking. This company offers a
unique management approach because they allow the opportunity for each area to
develop their own culture ("Career Center," 2005).
Xilinx has been one of the top ten on the list for four years in a row. Xilinx is a
technology company that is known as being the leading supplier of programmable chips.
The company is based out of San Jose, California. The noted reason for making the list
this year is their "culture of innovation" (Xilinx jumps," 2005,72). It was stated that one
out of five of their employees holds a patent ("Xilinx jumps," 2005).
Griffin Hospital has been on the list for six years in a row. This hospital has
created a very unique and caring environment for the patients that they help. The patients
and employees alike, "have access to family-style kitchens with a meal service, strolling
musicians, chair massages, and no fluorescent lighting" (Levering and Milton, 2005, p.
86). Griffin's President, Patrick Charmel attributed the recognition in Fortune (2005) to
"the family of employees, volunteers, and medical staff who make the experience
exceptional for every user of Griffin Hospital" ("Griffin Makes," 2005,ji5).
Valero Energy has made the list every year since 1999 ("Valero Ranked," 2005).
Valero is based in San Antonia, California. It is an Oil Refining company that focuses in
marketing and retail, and has never laid off an employee (Levering and Milton, 2005, p.
73). It is one of the nation's largest retail operators. The company has a commitment to
community service "which employees are proud to be associated with" ("Valero
Ranked," 2005,jil).
Instrumentation
A content analysis was conducted to identifl the key characteristics among the
organizations. This method was chosen because it is a "technique that studies human
behavior in an indirect way: The analysis of written contents of a communication"
(Fraenkel & Wallen, 2000, p. 469). Articles within the organizations and some outside
perspectives that contained content about the culture of each organization and the
characteristics that it possesses were read. Once read, the articles were analyzed through
the process of a content analysis in terms of frequency counts. In this type of analysis,
concepts for coding are identified and coding categories are defined; a count is made of
the number of times the concepts that fit the categories are found within written
communications (Fraenkel & Wallen, 2000). A coding method was used that identified
the key concepts of employee satisfaction and commitment in relation to participatory
decision-making and teamwork.
Key terms were identified that were associated with either/or both participatory
decision-making and teamwork. Literature on the nine organizations was reviewed and
an investigation for the key terms was conducted to identi@ if participatory decision-
making and teamwork are methods implemented in the top organizations to work for.
The terms were chosen by the researcher on the basis of latent content. Latent Content
refers to the meaning that underlies what is said or shown (Fraenkel & Wallen, 2000).
Based on the review of literature, the researcher identified terms that would identify
participatory decision-making and teamwork in the articles. The articles that were read
and concepts that were identified were chosen based on the assumptions that the
researcher had made from the literature review to be a description of participatory
decision-making and teamwork.
Table 2
The researcher created a color coding system that was used during the review of
literature for the nine organizations. A highlighter of two identified colors was used
while reading through each of the articles. Phrases, sentences, paragraphs, or words that
related to the key terms identified under the two subjects (see Table 2) were highlighted
within the articles. After all of the articles were read, the researcher tallied the blue and
pink highlighted markings within the texts to come to a final count of the number of
times participatory decision-making and teamwork were identified in the texts.
EXAMPLES OF TERMS IDENTTFLED IN THE ARTICLES
Participatory Decision Making (Blue Highlighter)
Trust; Encourage employee input; Open
Communication; Decision Processes;
Responsibility; Management Structure; Freedom;
Empower; Equal player
Teamwork (Pink Highlighter)
Team atmosphere; Family approach;
Communication; Responsibility; Creativity;
Attitude; Self-Motivation; Flexible Management
Data Analysis
After reading the articles on each of the organizations, the characteristics of
participatory decision-making and teamwork characteristics that were identified through
the coding process were counted. The researcher predetermined a number of highlighted
sentences, phrases, paragraphs, or words that were to be within the text. That
predetermined number was identified as 20. There had to be 20 highlighting marks
within for both participatory decision-making and teamwork individually. If there were
20 or more highlighted sentences, phrases, paragraphs, or words in relation to
participatory decision-making andlor teamwork, then it is assumed that one or both are
indeed characteristics of the cultures that were being researched. Since these
organizations are already known as great places to work for, then it will be assumed that
one of the reasons they are a great place to work is because they encourage a culture that
practices participatory decision-making by their employees and implements a team-based
culture.
Limitations
One limitation of the study is the bias that the researcher could have on the
interpretation of the meaning of participatory decision-making and teamwork. To avoid
this limitation, the researcher chose the terms to look for in the articles based on the
literature provided. Another researcher may have chosen different terms to look for in
relation to participatory decision-making and teamwork. Also, the sentences, phrases,
paragraphs, and words that were highlighted in the articles were highlighted when the
text appeared to fit under the realm of the terms identified. Others may have interpreted
the text in a different context than that of the researcher.
A bias of the articles that were read is also a limitation of the study. The majority
of the articles came from within the organizations that were investigated. These articles
talk about the type of culture that they practice in their organizations. The articles could
have been written on the basis of what they try to practice in their culture, and not on the
basis of the type of culture that the employees may perceive the organization to have.
The researcher attempted to fmd articles that were written from a non-bias author. There
were not many articles available that were written from outside of the organizations.
The possibility of human error could also be identified as a limitation. Some
important text that was in relation to the subjects that were being investigated could be
missed. Also, there is a potential math error when the researcher added up the items that
were highlighted to see how many times there was a relation to participatory decision-
making and teamwork. This is an important part of the research because it determined if
employees of the chosen organizations were satisfied and committed due to the two
cultural characteristics being investigated. To avoid this limitation, the researcher read
the articles twice to be certain that important text was not overlooked. Also, the
researcher added up the items that were highlighted twice to avoid an error in the math.
Chapter IV: Results
The purpose of this study was to investigate the effects that participatory decision-
making and teamwork have on employee satisfaction and employee commitment.
Employee turnover costs the company 70 to 200 percent of the employee's annual salary
(Kaye & Evans, 2001). For that reason, it is important to identify what type of
characteristics that organizations could implement into their culture that could increase
the level of satisfaction that their employees have, which in turn could increase the
commitment that the employees have to that organization.
A content analysis was done to investigate the cultures of nine organizations
which were ranked as one of the best organizations to work for in Fortune Magazine
(2005). Terms that are associated with participatory decision-making and teamwork were
identified within the articles of the text by a coding method that was determined by the
researcher.
Item Analysis
Table 3
BREAKDOWN OF COMPANIES AND THE NUMBER OF TERMS IDENTIFIED
Company
Wegmans Food Markets
Starbucks
Valero Energy
W.L. Gore
Genentech
J.M. Smucker
Republic Bancorp
Xilinx
Griffin Hospital
TOTALS
Number of Articles
Read
5
3
4
4
2
2
3
3
2
28
Number of terms
identified for
Participatory Decision-
Making
1 1
6
1 1
17
9
0
3
8
7
72
Number of terms
identified for
Teamwork
4
1
I I
18
3
1
0
6
5
50
Twenty-eight articles about the organizations were read by the researcher. In
those articles, terms that were associated with participatory decision-making were noted
72 times and terms that were associated with teamwork were noted 50 times. Before the
content analysis began, the researcher set the minimum number of times that the two
terms were to be identified within the readings to be 20. Therefore, in general, all of the
organizations that were investigated practice a culture that supports both participatory
decision-making and teamwork which positively affects how the employees feel about
these organizations, as well as their commitment to the organization.
Participatory Decision-Making
Terms relating to participatory decision-making were more evident within the
contents of the articles (identified 72 times) than terms relating to teamwork (identified
50 times). In relation to participatory decision making, Wegmans stated, "We empower
our people to make decisions that improve their work and benefit our customers and
companies" ("Who We Are," 2005,111). An article about Starbucks mentioned, "We
strive to create a diverse workplace in which every partner's voice is heard" ("The
Starbucks," 2005,12). Valero has created a working environment of "mutual and equal
respect and appreciation for diversity ("Shared commitment," 2005,yl). They also see
their employees as their "number-one asset" ("Mission Statement, 2005,11 1).
Evidence of participatory decision-making was evident in the midsized companies
as well. At W.L. Gore, there "are no chains of command nor pre-determined channels of
communication.. .they communicate directly with each other" ("Corporate Culture,"
2005,72). Also, W.L. Gore (2005) works under four guiding principles, one of which is
the "Freedom to encourage, help, and allow other associates to grow in knowledge, skill,
and scope of responsibility" (75). Genentech gives their employees a "great deal of
freedom within company goals to apply their skills, knowledge and initiative to getting
things done" ("Culture," 2005,75).
Republic Bancorp hires employees who "want to make a real contribution" to
their success ("Career Center," 2005,73). Also, they have a management approach that
"allows the opportunity for each to develop its own culture" (74). Xilinx is another
smaller size company that has evidence of participatory decision-making in their articles.
"Our employees are the keys to our innovation. Such innovation relies on the personnel
policies that allow employees to make their own decisions and take risks.. .keeping
employees informed leads directly to innovation.. .and ultimately increase profits"
("Company Overview," 2005,78). Griffin has several practices that allow their
employees to give input to their organization. One example is the monthly motivational
programs that are held by employees. At those programs, employees are "encouraged to
voice their concerns and opinions" ("Employment Opportunities," 2005,719). Also,
"every employee is an equal player in creating a wonderful health experience for our
patients" (Employment Opportunities," 2005,72).
Teamwork
Although not as many terms were identified for teamwork in the content analysis,
there were enough to conclude that it is a practice used by organizations that are chosen
to be the best to work for. The researcher had predetermined the number of times for the
terms to be identified within the articles to be a minimum of 20. Fifty terms were
identified in relation to teamwork. "Wegmans believes in teamwork.. .every employee is
a member of the Wegmans family" ("Why we're," 2005,72). At Starbucks, they hire
"people who are adaptable, self-motivated, passionate, and creative team players"
("Career Center," 2005,f3). Valero believes that "all employees have a right to offer
input and be involved in helping their team grow.. .we expect that employees follow
Valero's vision for company, team and individual growth" ("Shared commitment," 2005,
Ti1).
Teamwork is also evident in the midsized companies. "At Gore you'll find direct
communication, a team orientation, and one title - associate - that's shared by
everyone.. .it's a culture that contributed directly to our success by encouraging creativity
and opportunity" ("Working at," 2005, f 1). Also, W.L. Gore "depends on small groups
of people working together to achieve common goals" ("Great Place," 2003, f 1). If one
was working at Genentech, they are ''working at a company that fosters a sense of
teamwork, and working with people who do their job with integrity and professionalism"
("Awards and," 2005,74). Smuckers have "very special people on their team" ("The J.M
Smucker," 2003,f2).
Xilinx's corporate culture "promotes teamwork and very open communication"
("Company Overview," 2005, f 8). Griffin Hospital attributes their recognition from
Fortune (2005) to "the talent, dedication, and enthusiasm of the entire Griffin family of
employees" (''Griffin makes," 2005,f5).
This study investigated the effects that participatory decision-making and
teamwork have on employee satisfaction and commitment. It costs companies 70 to 200
percent of the lost employee's annual salary (Kaye & Evans, 2001). It is important to
identify what type of characteristics can increase the level of employee satisfaction and
employee commitment. The results indicate that companies noted as top organizations to
work for implement teamwork and participatory decision-making into their everyday
environment. The implementation of these characteristics increase the organizations
level of employee satisfaction and commitment.
Chapter V: Discussion
The literature states that when an employee leaves an organization, the amount of
money that it takes to replace that employee is quite high. The cost of replacing that
employee is 70 to 200 percent of each lost employee's annual salary (Kaye & Jordan-
Evans, 2001, p. 17) There is also a loss of intellectual capital and experience that the
employee contributed to the organization. To have employees working for a company
they are committed to can positively impact the bottom line. If employees are committed
to your organization, they are also satisfied with your organization.
Two characteristics of an organization's culture that could have a positive impact
on employee satisfaction and employee commitment are participatory decision-making
and teamwork. Employees that work in these types of environments are more satisfied.
There is a positive relationship between the degree of participation and employee
satisfaction (Black& Gregersen, 1997; French et al, 1960; Patchen, 1970; Ross & Zander,
1957). Participatory decision-making allows employees the opportunity to influence
decisions that affect them and their outcomes. The use of teams affects organizational
efficiency and employee satisfaction (Scott & Harrison, 1997).
The purpose of this research was to identify if participatory decision-making and
teamwork are two characteristics that, in fact, do affect employee satisfaction and
commitment. A content analysis was conducted to identify if organizations known for
being one of the best organizations to work for implement a culture that practice the
above characteristics. After reading twenty-eight articles about nine organizations, terms
relating to participatory decision-making were found seventy-two times and terms
relating to teamwork were found fifty times. Indeed, the organizations that were
investigated encourage a culture that practices participatory decision-making and
teamwork. These cultures are one reason why those organizations are the best
organizations to work for.
Limitations
Three limitations were identified in this study. One limitation is that the
researcher may present a bias by the way the definitions of participatory decision-making
and teamwork are interpreted. To avoid this limitation, the terms that were looked for in
the articles that relate to the two culture characteristics were chosen by the researcher
based on the literature provided. Different terms may have been identified in relation to
participatory decision-making and teamwork if there had been input by another
researcher or a person outside of the study. Also, others may have interpreted the text in
a different context than that of the researcher while reading the articles about the
organizations. The sentences, phrases, paragraphs, and words that were highlighted
could have been quite different with another researcher.
The second limitation identified was that the majority of the articles used in the
content analysis were from the organizations that were being investigated, and not fiom
outside sources. This could create a false interpretation of what the culture of the
organization is actually like. Since the articles are written fiom within the organization,
they may promote a type of culture that the organization hopes to practice, and not
necessarily the type of culture the employees would say that the organization practices.
The researcher attempted to find articles that were written fiom a non-bias author. There
were not many articles available that were written fiom outside of the organizations.
The third limitation identified is that there is a possibility of human error. Text
that was important characteristics of either participatory decision-making or teamwork
could have been missed while the researcher was reading the articles. Another factor in
regards to human error is the potential for math error when the researcher added up the
mount of items that were highlighted within the text. This is an important part of the
research because it determined if employees of the chosen organizations were satisfied
and committed due to the two cultural characteristics being investigated. To avoid this
limitation, the researcher read the articles twice to be certain that important text was not
overlooked. Also, the researcher added up the items that were highlighted twice to avoid
an error in the math.
Conclusions
In Chapter 11, the literature review revealed that research has shown that both
participatory decision-making and teamwork have a positive impact on employee
satisfaction and employee commitment. Employees want to be heard and involved. This
research, like research of others did show that participatory decision-making and
teamwork do impact employee satisfaction and commitment.
Participatory decision-making was identified in the articles that were read about
the chosen organizations. The mount of involvement that employees are allowed to
have in regard to decision-making has an affect on employee satisfaction. The
organizations that were chosen to be investigated in this research showed that they
implemented a culture where they encouraged their employees to be involved in the
decisions that impact them and contribute positively to the well-being of the organization.
This researcher suggests the conclusion that employee involvement is one reason that the
organizations are chosen as one of the best organizations to work for.
Another reason for those organizations to be recognized as one of the best
organizations to work for is because of teamwork. It was mentioned in the literature
review that one benefit that a team-based structure can bring to the organization is an
increase in employee motivation and commitment. Also, businesses that continually
perform successfully tend to implement teams into their culture as a part of their
everyday operations. Based on the content analysis, this researcher identified that a
team-based structure is also a characteristic of the organizations chosen fiom the Fortune
Magazine (2005). Another reason that those organizations are chosen as one of the best
organizations to work for is because of the teamwork that they encourage within their
organizations and their culture.
Recommendations
In the future, research that focuses on the effects that participatory decision-
making and teamwork have on employee satisfaction and commitment should possibly
focus on either one or the other. Future research could focus on participatory decision-
making to come to more specific conclusions on how it impacts employee satisfaction
and commitment. As well, the same is for teamwork.
One possible way that more specific conclusions could occur is to conduct a case
study or assessment through surveys or focused interviews on one or a few organizations
to receive input from employees. The employees could explain exactly why these
characteristics make them more satisfied to be working where they are working. The
obvious reason is that they get the opportunity to make important decisions and be
recognized for their work and contribution that they give to the organization. Are there
other reasons that these characteristics increase the satisfaction and commitment level of
employees? Future research could investigate this.
There are two suggestions for a change in the methodology. One change in
practice suggested for the methodology of this research would be to have more than one
researcher involved in the content analysis. If there were two researchers, the list of
terms that were chosen to be items that describe participatory decision-making and
teamwork would be developed by both of the researchers. That way, there is more than
one person's input on the interpretation of the literature. This may result in the list of
terms used in the content analysis (see Table 2) to differ from the current list. Also, both
of the researchers would read copies of the articles included in the content analysis. A
discussion of the highlighted words, phrases, sentences, or paragraphs that each
researcher highlights would occur. This would help to decrease the limitation mentioned
in the article about the possible bias of interpretation that the researcher presents.
If future researchers choose to conduct a content analysis on this topic, another
suggestion is to focus on only one organization. As shown in Table 3, some
organizations had more evidence of participatory decision-making and teamwork than
others. Some organizations that were researched may indeed not necessarily practice a
culture of either participatory decision-making or teamwork. The terms of this
methodology has been set in a way that if the terms were identified in general 20 times or
more, then all organizations investigated were generalized to practice a culture of
participatory decision-making and teamwork.
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