Manage your human sigma.

If sales and service organizations are to improve, they must learn to measure and manage the quality of the employee-customer encounter. Quality improvement methodologies such as Six Sigma are extremely useful in manufacturing contexts, but they're less useful when it comes to human interactions. To address this problem, the authors have developed a quality improvement approach they refer to as Human Sigma. It weaves together a consistent method for assessing the employee-customer encounter and a disciplined process for managing and improving it. There are several core principles for measuring and managing the employee-customer encounter: It's important not to think like an economist or an engineer when assessing interactions because emotions inform both sides' judgments and behavior. The employee-customer encounter must be measured and managed locally, because there are enormous variations in quality at the work-group and individual levels. And to improve the quality of the employee-customer interaction, organizations must conduct both short-term, transactional interventions and long-term, transformational ones. Employee engagement and customer engagement are intimately connected--and, taken together, they have an outsized effect on financial performance. They therefore need to be managed holistically. That is, the responsibility for measuring and monitoring the health of employee-customer relationships must reside within a single organizational structure, with an executive champion who has the authority to initiate and manage change. Nevertheless, the local manager remains the single most important factor in local group performance. A local manager whose work group shows suboptimal performance should be encouraged to conduct interventions, such as targeted training, performance reviews, action learning, and individual coaching.

Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: a meta-analysis.

Based on 7,939 business units in 36 companies, this study used meta-analysis to examine the relationship at the business-unit level between employee satisfaction-engagement and the business-unit outcomes of customer satisfaction, productivity, profit, employee turnover, and accidents. Generalizable relationships large enough to have substantial practical value were found between unit-level employee satisfaction-engagement and these business-unit outcomes. One implication is that changes in management practices that increase employee satisfaction may increase business-unit outcomes, including profit.

Interactive effects of personality and perceptions of the work situation on workplace deviance.

Previous research on workplace deviance has examined the relationship of either personality or employees' situational perceptions with deviant behavior. In this study, the authors focused on the joint relationship of personality and perceptions of the work situation with deviant behavior. Using 4 samples of employees and multiple operationalizations of the core constructs, the authors found support for the hypothesis that positive perceptions of the work situation are negatively related to workplace deviance. In addition, consistent with hypotheses, the personality traits of conscientiousness, emotional stability, and agreeableness moderated this relationship. Specifically, the relationship between perceptions of the developmental environment and organizational deviance was stronger for employees low in conscientiousness or emotional stability, and the relationship between perceived organizational support and interpersonal deviance was stronger for employees low in agreeableness.

The well-being 5: development and validation of a diagnostic instrument to improve population well-being.

Building upon extensive research from 2 validated well-being instruments, the objective of this research was to develop and validate a comprehensive and actionable well-being instrument that informs and facilitates improvement of well-being for individuals, communities, and nations. The goals of the measure were comprehensiveness, validity and reliability, significant relationships with health and performance outcomes, and diagnostic capability for intervention. For measure development and validation, questions from the Well-being Assessment and Wellbeing Finder were simultaneously administered as a test item pool to over 13,000 individuals across 3 independent samples. Exploratory factor analysis was conducted on a random selection from the first sample and confirmed in the other samples. Further evidence of validity was established through correlations to the established well-being scores from the Well-Being Assessment and Wellbeing Finder, and individual outcomes capturing health care utilization and productivity. Results showed the Well-Being 5 score comprehensively captures the known constructs within well-being, demonstrates good reliability and validity, significantly relates to health and performance outcomes, is diagnostic and informative for intervention, and can track and compare well-being over time and across groups. With this tool, well-being deficiencies within a population can be effectively identified, prioritized, and addressed, yielding the potential for substantial improvements to the health status, performance, and quality of life for individuals and cost savings for stakeholders.

Economic and labor market forces matter for worker well-being.

In light of recent interest in societal subjective well-being, policies that seek to improve the economy and labor markets need to address the question of whether economic factors matter for worker well-being, specifically job satisfaction. In a worldwide representative poll of 136 nations, economic factors are associated with job satisfaction beyond demographic and job factors. Hierarchical linear modeling showed that higher national GDP and job optimism was associated with job satisfaction, whereas higher unemployment was associated with job dissatisfaction. Mediational analyses revealed that economic variables (GDP and job optimism) were partially mediated by job satisfaction in predicting life satisfaction; full mediation was found for unemployment. In a second study, time series regression of monthly data from a nationally representative poll in the United States from 2008 to 2011 revealed that unemployment rate was significantly associated with job dissatisfaction over time. There was some evidence that prior unemployment rates predicted job satisfaction at a higher level than job satisfaction predicted unemployment rates, suggesting that economic factors lead to job (dis)satisfaction rather than the converse. Theoretical and practical implications are discussed.

Causal Impact of Employee Work Perceptions on the Bottom Line of Organizations.

Perceptions of work conditions have proven to be important to the well-being of workers. However, customer loyalty, employee retention, revenue, sales, and profit are essential to the success of any business. It is known that these outcomes are correlated with employee attitudes and perceptions of work conditions, but the research into direction of causality has been inconclusive. Using a massive longitudinal database that included 2,178 business units in 10 large organizations, we found evidence supporting the causal impact of employee perceptions on these bottom-line measures; reverse causality of bottom-line measures on employee perceptions existed but was weaker. Managerial actions and practices can impact employee work conditions and employee perceptions of these conditions, thereby improving key outcomes at the organizational level. Perceptions of specific work conditions that engage employees in their work provide practical guidance in how best to manage people to obtain desired results.