Page 686 - Business Principles and Management

Chapter 25 • Developing an Effective Organization

What effects does the termina-
tion of some employees have
on those who remain?

PHOTO: © GETTY IMAGES/PHOTODISC.

learn more about the work performed in the organization as they learn multiple
jobs and increase their skills.

JOB ENRICHMENT

Another way to use job design to improve employee satisfaction is to involve em-
ployees in decision making. Job enrichment gives employees the authority to make
meaningful decisions about their work. For example, managers may allow work-
ers to make choices about how to do their jobs. Managers may ask employees for
advice on how to improve performance or reduce errors. Job responsibilities may
be changed so employees can solve problems themselves without checking with
their supervisor. For example, in one major hotel chain, employees are authorized
to immediately take the necessary steps to resolve a customer problem or com-
plaint at a cost of up to $200 without consulting a manager.
As you learned in earlier chapters, some companies have work teams that are
responsible for the entire assembly of a product, performance of a service, or opera-
tion of a small unit in the business. The team helps with goal setting, shares all
tasks, and is responsible for the results. Companies using this system have found
that team members develop a strong loyalty to the other members and take personal
responsibility for the effective operation of the team and the quality of its work.
Some companies expand the duties and responsibilities of employees for the
wrong reasons. To save money, the companies cut the number of personnel and
divide the additional work among the remaining employees. Sometimes that is done
without providing additional training or any recognition or rewards for employees
who are required to take on the additional work. Employees are already upset
about losing coworkers and concerned that they might also lose their jobs. If they
feel forced to take on additional responsibilities that may require longer work hours
and greater job pressure, they will not have positive feelings about the changes.
An improved work environment and worker involvement are important goals
of organizational development. Improving management and employee relation-
ships, making work more meaningful, and developing effective work teams are all

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