Culture Shift: Eliminating Employee Cynicism for Good

Read this interesting article on employee cynicism. Understanding the real cause of employee cynicism is the all-important first step toward permanent eradication argues Paul Levesque in this article. Some highlights from the article -

"... There are some "constant battles" that just inevitably come with the territory. Th e fight against germs, for example, affects every aspect of life in a hospital. Those who prefer outdoor recreation will have a mosquito problem to deal with anywhere there's standing water. Similarly, employee cynicism is an existing or potential problem in virtually every business setting. But solutions do exist to keep these constants at bay. As hospitals learn how germs spread, they can more effectively prevent infection. When we understand how mosquitoes breed, we're better equipped to bring their numbers under control.

Think of five successful corporations you personally admire. Do all five provide products and services that have made—and continue to make—our society and our world better in some way? The more unequivocally you can answer "yes," the more confidently I can predict that the companies you're thinking about do not have a problem with employee cynicism. More likely, theirs are cultures characterized by high levels of employee pride, right alongside the impressive profits.

The difference is that in these cultures, prosperity is perceived to be the means, rather than the end. It's the crucial and fundamental difference between "we exist to make a lot of money" and "we exist to do a lot of good in the world, and that requires a lot of money." It's eliminating cynicism for good, so to speak.

The great paradox is that businesses driven by self-interest cultivate employees who learn to similarly put their own self-interest first—to the ultimate detriment of the business. A management obsession with profit creates a workforce disinterested in profit, and obsessed instead with working conditions, wages, and other issues of interest to the workers themselves.

Management's day-to-day actions and priorities must make it difficult, if not impossible, for even the most cynical observers to argue it's all being driven purely by self-interest. The more readily employees can point to benefits experienced by customers or by the community at large, the more the cultural scales are likely to tip toward the "employee pride" side of the balance, and away from the "cynicism" side.... "

My experience suggests that those who work, will continue to work and those who don't, really won't, whatever we do or don't do. Article appears a bit idealistic to me. May be I am wrong.

Social welfare organisations liable to pay minimum wages

Business Line (July 9, 2008) reports that the Madras High Court has held that payment of minimum wages would stand irrespective of whether a work undertaken by an organisation was on voluntary basis.

Citing a decision of the apex court [in Sanjit Roy vs State of Rajasthan (1983 (1) SCC 525)], Mr Justice K. Chandru ruled that neither the Government nor any other authority could evade payment of minimum wages on the specious plea that they were running a social welfare organisation.

Non-payment of minimum wages to workmen on piece rate basis, would amount to forced labour is the key decision.

'Don't Touch My Perks': Companies that Eliminate Them Risk Employee Backlash

Managing people and their expectations is a difficult job. I read an interesting article in Knowledge@Wharton (July 23, 2008) on employee perks. A few highlights -

1. Once you have the perk, to take it away is seen as a violation of a psychological contract you have with your employee.
2. Inexpensive, or no-cost, perks -- such as casual-dress days, free coffee and food discounts -- may not add much to employee morale or productivity, but they don't hurt the bottom line much either.
3. It helps a lot if the need is something driven by factors outside the firm. The need to improve share price isn't going to satisfy a lot of people.
4. Some executives turn away cash compensation in favor of use of a company car valued at much less money because of emotional reasons.
   
5. Often you have to keep these deals quiet so others don't feel their [own] deal is bad.
   
6. Cell phone companies, local restaurants, and other businesses are eager to offer discounts to employers who, in turn, pass along the discounts to their employees. Employers win because they can provide a benefit to their employees that costs nothing.

With difficulties cropping on the economic front, it will be interesting to watch how companies are going to respond. May be if there is a threat of job loss, then employee(s) may compromise and say reduce salary or benefits but don't resort to job cuts.