BSc (IM) 6th semester Bachelor Thesis Author: Jonas Stoffregen Supervisor: Robson S. Rocha, PhD The Danish Psychic Working Environment The Development of The Psychic Working Environment and The Connection to Motivational Theories Aarhus University, Department of Business Administration 2012 96.966 Characters (including spaces) Index Abstract ................................................................................................................ 3 Introduction ......................................................................................................... 4 Problem statement ............................................................................................... 4 Outline and delimitation ....................................................................................... 4 Outline ................................................................................................................................................................... 4 Delimitation ........................................................................................................................................................ 5 Theoretical part .................................................................................................... 5 Methodology ....................................................................................................................................................... 5 Herzberg Motivator-hygiene Theory .......................................................................................................... 5 Vroom’s expectancy theory of motivation ................................................................................................ 7 Reward systems .................................................................................................................................................... 8 The theory of goal setting ................................................................................................................................ 9 Theory of feedback ............................................................................................................................................10 360 degree and upward feedback ................................................................................................................... 10 The four drives of motivation .......................................................................................................................12 Literature review ........................................................................................................................................... 12 Impact of feedback and incentives.............................................................................................................12 Participation, Financial incentives and goal setting in motivating employees ....................13 Review of the Impact of Financial and Nonfinancial rewards of Employee Motivation ..14 Aim and theoretical background of study ................................................................................................... 14 Financial rewards ................................................................................................................................................... 14 Nonfinancial rewards ........................................................................................................................................... 15 Results of study ....................................................................................................................................................... 15 Financial rewards ............................................................................................................................................. 15 Nonfinancial rewards ...................................................................................................................................... 16 Additional survey data ................................................................................................................................... 16 Conclusion of study ................................................................................................................................................ 18 A walkthrough of the evolution of motivational theories and incentive systems ................18 The fundamental theories: 1900-1969 ......................................................................................................... 18 Some Criticism emerges – 1970-1979 .......................................................................................................... 18 A shift towards management motivation and strategy: 1980-1989................................................ 19 Strategy and globalization: 1990-1999 ........................................................................................................ 19 Strategy and Herzberg’s theory: 2000-2010 .............................................................................................. 20 Analytical part .................................................................................................... 21 Background for study .................................................................................................................................. 21 Data provision ................................................................................................................................................. 22 Development in the working environment in the period of period of 1990 and 2000 .... 23 Development in the working environment in the period of 2000 and 2005 ........................ 24 Quantitative demands .....................................................................................................................................24 Cognitive demands ............................................................................................................................................25 Emotional demands ..........................................................................................................................................26 Demand to hide Emotions ..............................................................................................................................27 Influence .................................................................................................................................................................28 Growth opportunity ..........................................................................................................................................30 Meaning in work.................................................................................................................................................30 Involvement in work .........................................................................................................................................31 Predictability........................................................................................................................................................32 Role clarity ............................................................................................................................................................33 2 of 53 Role conflict ..........................................................................................................................................................34 Management quality ........................................................................................................................................36 Social support in work .....................................................................................................................................37 Feedback ................................................................................................................................................................38 Social Community ..............................................................................................................................................38 Insecurity at work..............................................................................................................................................39 Job satisfaction ....................................................................................................................................................40 Somatic Stress Symptoms...............................................................................................................................41 Cognitive stress symptoms .............................................................................................................................42 Conclusive part ................................................................................................... 43 The development of the psychic working environment ................................................................ 43 Motivational theories and the Danish psychic working environment .................................... 44 Recommendations .............................................................................................. 45 Bibliography ....................................................................................................... 45 Appendix ........................................................................................................... 47 Dimensions for 2000/2005 ....................................................................................................................... 47 The Development in All Dimensions ..................................................................................................... 53 Abstract The understanding of what motivates employees, has in the last couple of decades become increasingly important to create an understanding of, because of the constant increase in the international competition situations, that has forced organizations into streamlining their hierarchical structure, and to boost their performance and product quality, through increasingly motivated and engaged employees, that are wiling to contribute to a greater extend, and are more loyal to the organization. This report aims to benefit to this understanding, through an investigation how the Danish psychic working environment has developed, and how the development of this environment, has been affected by the creation of motivational theories and research. This has required the inclusion of literature on motivational theories, that might affect the psychic working environment, up to date research on the impact of different incentive systems, and the inclusion of both historical and periodic data on the development of the Danish psychic working environment, as to create a thorough and well supported investigation of the topic presented in this paper. From the main analysis, it was found that the development of the Danish psychic working environment, seemed to not only be connected to the development of new theories and the creation of new knowledge but, that it is also strongly affected by the opinion of the government in charge. While it was further found, that the development of the psychic working environment, as a result of the increased demands on employees, has not improved during the investigation period chosen for this study. The findings of this study indicate that the development of the psychic working environment in Denmark, is under influence from several external factors, such as foreign research and even the economic situation, and that a governmental change, might halt future developments, and might even deteriorate the development, the psychic working environment has seen in the last decade. 3 of 53 Introduction The understandings of employees, and the creation of motivational theories, have long been the center of attention for several researchers, as it was found, that if one could understand employee needs and wants, they would have the possibility of improving organizational performance through increased employee loyalty, performance and their willingness to contribute to the organization to a much greater extend. I will in this report focus mainly on those motivational theories that affect the psychic working environment. Because I find the knowledge, that it is possible to completely alter ones perception of the close working environment, through incentives such as in time and work related feedback, clear and achievable goals or individual rewards systems, as very interesting to look into, as one develops an understanding of what creates and maintains motivation. Research has however found, that there is a possibility of encountering complications when implementing motivational theories, as the cultural differences between country of origin and country of implementation, can have unpredictable effects on the working environment, and can result in outright undesirable motivational impacts. The possibility for complications or outright problems with the implementation of motivational theories, that has the possibility of improving the psychic working environment, inspired the initial idea of investigating whether there is a connection between the general development of motivational theories, and the development of a working environment. This idea further developed into the desire to investigate, whether there was a connection between the development of motivational theories and the development of the Danish psychic working environment. Where it was found that the theoretical and analytical data used, further enabled the inclusion of whether the development of the Danish psychic working environment could be defined as improving. Problem statement This report aims to analyse the development of the Danish working environment, and to determine whether there is a connection between the development of motivational theories and the Danish working environment. Outline and delimitation Outline As this report attempts to investigate, whether there is a connection between the development of motivational theories and the Danish working environment, while also creating an in-depth analysis of the current development of the Danish psychic working environment, it has been necessary to create a well-structured and organized report. 4 of 53 For this purpose, it has been decided that the theoretical and analytical part of this report, should be further expanded into subgroups to ensure, that the reader may easily navigate and maintain an overview of the different topics presented throughout this report. To provide an example of this, one may look at the methodology section from the theoretical part of the report, where the different theories used for the creation of this report, have been separated from one another to ensure, that the reader easily can locate a specific theory if needed. It is my opinion that the clear distinction between topics and information is necessary, to ensure the possibility for ease of navigation and understanding. Delimitation As one can see from the problem statement of this report, the topic itself is rather comprehensive and open for individual interpretations, as it aims to explain a rather comprehensive issue. The delimitation of the report is therefore important as it leaves the reader with the proper understanding of what exactly the report will cover, and how it will be covered. First, it should be stated that the report has been limited to only cover the psychic working environment, and there will therefore only be included motivational theories that are capable of creating an impact on this environment. As the list of theories on this specific subject is still rather comprehensive, the methodology part of the report, will act as further limitation, as it is only those theories presented there, that should be taken into consideration during the analytical part of the study. Second, the main focus on the analysis will concern the development of the Danish psychic working environment during the period of 2000-2005, and there will here be use nineteen different comparable dimensions. The analysis will also include literature about the early construction of an improved psychic working environment in Denmark, and a brief analysis of the development made in this environment made during the 1990’s. Third, the statistical data presented in the analytical part of the study, will come from the Danish National Research Centre for the Working Environment, as to create a consistency and reliability in the data. Fourth, as to avoid the inclusion of out dated theories, research or studies in this report, it has been decided that all material in the report, should be either recent, or support by recent research as to make certain of its continued relevance. Theoretical part Methodology Herzberg Motivator-hygiene Theory The theory of Herzberg (Buelens-Sinding-Waldstrøm, 2010, s. 176-181) is formed as to have a strong focus on job enrichment, through the focus of job satisfaction and dissatisfaction, and it therefore assumes a complex interaction between the internal and external factors, where individuals respond differently to stimuli. The factors that have a distinct effect on job satisfaction, is the intrinsic aspects of work, as they are associated with the task being performed. Herzberg has labelled these factors as motivations, because of the linkage to strong effort and performance. 5 of 53 Herzberg found that the factors that had a distinct effect on job dissatisfaction involved the extrinsic aspects of work, and primarily revolved around the work context and environment of the organization itself. Herzberg labelled these factors as hygiene factors and proposed them as not being motivational. The last point and most important point of Herzbergs theory, is the separation of Job satisfaction and dissatisfaction, where they are not viewed as opposites, but separate needs that can be fulfilled. This distinction means that the satisfaction, dissatisfaction continuum, contains a zero point where an employee has neither job satisfaction nor dissatisfaction. Herzberg has on base of his theory suggested, that an enriched job will include the opportunity for achievement, recognition for ones work, stimulation, responsibility and advancement. Critics of this model does warn that the method of which the theory has been conducted, opens it for the risk of being biased, limits its predictive power among people with low education or job level, and that the model will vary across cultures. (Bassett-Jones & Lloyd, 2005) Argues in their study concerning the staying power of Herzberg’s theory, that a positive relationship with line managers, had a direct influence on employee willingness to contribute ideas, and the extend to which an employee wanted to improve organisational success, and to the extend to which an employee attempts to save the employer money. In order to perform this study, (Bassett-Jones & Lloyd, 2005) deemed it necessary to overcome some of the major critiques of Herzberg, and the study was therefore performed through the usage of the survey method, where observable behaviour, rather than emotion was the main focus of the study. (Bassett-Jones & Lloyd, 2005, s. 11) Found that a negative perception of managers, lead to a decrease in employee willingness to share ideas, and therefore concluded, that the positive perception of ones managers, had replaced recognition as the motivational factor of sharing ideas. (Bassett-Jones & Lloyd, 2005) Contributes this change, to the flatter hierarchy structure of today’s companies, where there are fewer prospects for promotions. (Bassett-Jones & Lloyd, 2005) Concludes as Herzberg that while encouragement can move some employees, more are motivated through the desire to overcome frustration and to improve the organisational success. 6 of 53 Figure 1 Contributors of ideas 100% 90% 80% 70% 88% 80% 85% 77% 73% 60% 50% 40% 30% 20% 10% 0% Positive attitude towards line manager Approachable line manager Considered manager to have the necessary technical knowlegde Being treated with respect Feels supported in doing their best These results have been taken from (Bassett-Jones & Lloyd, 2005, s. 11) and they depict the answers of employees that contributed with ideas. Vroom’s expectancy theory of motivation Vroom’s (Buelens-Sinding-Waldstrøm, 2010, s. 198-203) view on motivation revolves around the expected reward, or outcome an individual expects to gain from a given level of performance. According to Vroom’s theory, the willingness to perform for a given task is affected by three different sequences of expectation. First, the initial motivation is created by the individuals’ expectation, that a certain level of effort, will result in meeting the organizations projected performance goal. Secondly, motivation will be influenced by the individuals perceived chance of receiving rewards as compensation for performing at a higher level. Thirdly, Motivation will only be positive, as long as the reward will contain higher perceived value, than the perceived value of the effort put into the task. The theory does put forward that the difficulty of a task, will have a significant importance to ones willingness to perform, as non-challenging or too challenging tasks will cause employees to feel frustrated, and thereby be less willing to perform high. Because of this implication, it is important for managers, to not rely solely on their own views of the individual employees abilities, but rather include the single individuals perception of him/herself, when assigning projects. Because of the importance of the single individuals perception, the organization cannot rely solely on standardized rewards, since individuals’ value differently. Organisations therefore have to apply rewards that are specifically chosen for each person. 7 of 53 The usage of expectancy theory relies on the organization, not only being able to meet the individual needs and self perception, but also that it is capable of keeping the promises of rewards. It should be noted that in practice, organizational rewards system often fail, because of the difficulties regarding measurements of performance and subjective ratings. Reward systems The theory of reward systems, does not only focus on the monetary rewards or benefits, that one is prone to achieve through hard work, but also the less obvious social and the psychological rewards. These two types of rewards are important, because the social rewards are praise and recognition, while the psychological rewards stems from personal feelings of self-esteem, self-satisfaction and accomplishment (Buelens-Sinding-Waldstrøm, 2010, s. 225-227). The financial and social reward systems, are defined as extrinsic rewards as they are generated from the environment, the psychological rewards are on the other hand intrinsic, as they are self-generated. Research into intrinsic and extrinsic motivation found that intrinsic motivation was not desirable for all employees as previously thought, as it was valued higher in countries with a strong focus on welfare and a low power distance, with an individualistic culture. In cultures with poor social security and a larger power distance, intrinsic motivation was found to not being desired. According to theory by K.G Wheeler, presented in (Buelens-Sinding-Waldstrøm, 2010, s. 228), the effective reward system, have to take into account the single individuals preferences for both norms and the social, cultural and political economic contexts, when designing or implementing reward systems, that might enhance job satisfaction or motivation. The norms used, have to be clear and consensual, as the organizational reward norms, in their pure form create significantly different reward distribution systems. The first of these norms presented in (Buelens-Sinding-Waldstrøm, 2010, s. 228) is the profit maximization, where an employee regardless of the well being of the organization, would strive to achieve as high rewards as possible, and have no company loyalty in case of better employment offers. Second, there is the equity norm, which according to studies is present in most cultures, and is driven by fairness and justice, in the sense that rewards are distributed according to contribution. As the third, there is the equality norm, with its focus on rewarding everybody regardless of individual contribution. This norm is supported by research that shows that the smaller the pay gap, the better the individual and organizational performance. Need is present as the fourth norm, as it calls for distribution rewards to the need of the individual rather than contributions. According to D. R. Spitzer which is presented in (Buelens-Sinding-Waldstrøm, 2010, s. 229) there are eight reasons, that explains why desired motivational impact often is not achieved, despite of strong monetary and time investments. Too great an emphasis on monetary rewards Rewards are seen as lacking the appreciation effect 8 of 53 The risk of extensive benefits becoming entitlements Counter productive behaviour becomes rewarded Extensive periods pass between performance and rewards Standardized rewards The usage of rewards with a short motivational impact Demotivated practices such as lay off. Across the board pay rises, cuts and excessive compensation for executives. (Buelens-Sinding-Waldstrøm, 2010, s. 230) Presents three issues found by researchers, that are of importance to the balance between financial and nonfinancial reward systems. First, research as presented by L. Morris highlights the employee desire for interesting work and recognition over monetary gain, secondly E. L. Deci, R. Koestner and R.M. Ryan is included for their conclusion, that extrinsic rewards can lose their motivating abilities over time and might even undermine intrinsic motivation. Third as noted by Steven Kerr that monetary rewards must be significantly above an employee’s base pay to have a true motivational effect. The theory of goal setting In the context of motivational theory, goals are defined as the object, aim or action, which an individual is trying to accomplish. Research into motivational theory, repeatedly supports goal setting theory as an effective technique, as it helps setting performance goals that, increases group and individual performance (Buelens-Sinding-Waldstrøm, 2010, s. 210-216). When introducing new goals the awareness of possible conflicting goals is important, as conflict will result in lower performance and confusion as to which goal to fulfil. In goal setting theory, there are three areas of research that are placed with importance, as they have proven to have a significant impact on the overall motivation. The first point goal difficulty simply reflects the needed effort to fulfil a goal. According to research, higher difficulty is positively linked to higher performance, as long as the overall difficulty does not exceed the abilities of the individual, group or organization. Goal specificity is the second point, and it revolves around the specification of goals, as a way to clarify the objective. Research into goal specification has shown, that employees are not likely to increase performance, if they do not believe or trust in said goals, and that innovative and complex goals will have increased completion time, as employees need additional time for understanding, solving and approaching these goals. The third point, goal commitment, describes the strength of a persons intention to reach a goal, and the unwillingness this person has to abandon or lower the bar over time. Research into goal commitment hypothesize, that one may only expect high performance on difficult goals, when there is a strong commitment to the completion of them. Under this point research found, that individuals with a high need for achievement, perform higher as they have a natural high goal commitment. 9 of 53 Theory of feedback According to research presented in (Buelens-Sinding-Waldstrøm, 2010, s. 217), feedback is of great importance to employees. The feedback received, is however often only in negative situations or it is consistent of poor quality, which the employee cannot use to improve oneself. According to D.R. Ilgen, C.D. Fisher and M.S. Taylor (Buelens-Sinding-Waldstrøm, 2010, s. 217), feedback serves two functions for the recipient, as the instructional part will clarify a role or teach the employee a new behaviour, while motivation is created through feedback as a reward, or the promise of one. According to A.N. Kluger and A. DeNisi (Buelens-Sinding-Waldstrøm, 2010, s. 218), the previous believed assumption that feedback automatically had an effect, has had to be rethought as their data revealed, that while organizations in general get positive performance, the possibility of a decrease in performance through the usage of feedback, showed to be 38 %. Their conclusion has been explained as feedback not solely functioning on an objective scale, but also a subjective scale, that is prone to be biased. This subjective feedback is according to D.M. Harold and D.B Fedor (BuelensSinding-Waldstrøm, 2010, s. 218), easily contaminated by situational factors, such as the racial bias. They further explain that if the objective feedback is to work as intended, there is a need for managers to properly understand the connection between feedback recipients, and their immediate environment. B.D. Bannister (Buelens-Sinding-Waldstrøm, 2010, s. 219) found that the overall perception of feedback is strongly dependent on the nature of it. It was found that recipients of positive feedback were more likely to accurately recall it later, than recipients of negative feedback. In relation to this, S.J. Ashford and A.S Tsui (Buelens-Sinding-Waldstrøm, 2010, s. 219) found that the motivational impact of negative feedback was higher than recipients of positive feedback. These results have been explained as being created through the desire to improve, and higher goal setting. Negative feedback should however be carefully used, as it might create insecurity, defensiveness and have a damaging effect on self-efficacy. As feedback becomes based on the cognitive criteria such as accuracy, credibility of source, and fairness of system, performance –reward expectancies and the reasonableness of standards, the need for trustworthy and credible managers increases, as they are experiencing less problems when applying feedback as a motivational factor, A.C. Wicks, S.L. Berman and T.M. Jones (Buelens-SindingWaldstrøm, 2010, s. 219-220). 360 degree and upward feedback The 360-degree and upward feedback approaches presented in (BuelensSinding-Waldstrøm, 2010, s. 222-223), break aside from the more traditional and strict superior to subordinate feedback systems, as they allow for additional sources of feedback. Under the 360-degree system, feedback is included from the individual’s own perception of performance, along with that of behaviourally specific performance information, supplied by superiors, subordinates, peers and those outside the company. Research has however indicated, that because of time consumption and cost, the model often does not include those outside the 10 of 53 organization, because of the lack of available data, M. London and R.W. Beatty (Buelens-Sinding-Waldstrøm, 2010, s. 222). In contrast, management often resists the upward feedback model, as it is deemed to gradually wear away their authority, through subordinates providing feedback on management style and performance. The model has further received critic such as that of B.P. Mathews and T. Redman (Buelens-Sinding-Waldstrøm, 2010, s. 222), where it is claimed, that the upward feedback model is functioning as either a popularity test or is directly manipulated by management through promises or threats. Because of potential manipulation and threats, the upward feedback model, is not recommended as the primary determinant for either promotion or pay. It is however useful for the construction of development programs. They further suggest, that open feedback, which is preferred by managers, is less effective than anonymous feedback, because they feel less uncomfortable. The popularity of these two approaches is increasing, because of at least six reasons that together suggests, the benefit of looking into innovative ways of giving and receiving performance related feedback (Buelens-SindingWaldstrøm, 2010, s. 222-223). Traditional performance appraisal systems create widespread dissatisfaction The team based organization is replacing the traditional hierarchy structure, and now requires interpersonal skills that are best evaluated by team members Multiple rate systems are seen as making more valid feedback than the single source rating. Advanced computer network technology such as the company intranet, now facilitates the multiple rating systems. Bottom-up feedback interlaced structure functions with the tendency of participative management and employee empowerment Co-workers and subordinates have shown to know more about the professional’s strengths and limitations. Through the feedback systems, there has been created awareness about ones behaviour, and the effect it has on others. The goal is therefore to motivate change, through an evaluating of fellow team members on characteristics such as openness, co- operation and behavioural comments, to improve the functioning within the team. When applying feedback, M. Hequet, L. Smith, E. Van Velsor and S.J. Wall (Buelens-Sinding-Waldstrøm, 2010, s. 221-222) suggests the creation credible and effective feedback systems through: Relating feedback to the existing performance goals and expectations. Specific and concrete feedback that is tied, to either observable behaviour or measureable results. A focus on specific behaviours and feedback that is tailored to the individual recipient, Channelling feedback to key result areas. Providing feedback as quickly as possible as the effect erodes over time. Positive feedback for improvement instead of only final results. Task oriented feedback instead of people oriented. Feedback that is based upon accurate and reliable information. 11 of 53 Keeping in mind, that feedback, especially in cross-cultural situations, often is perceived wrongly or becomes rejected. The four drives of motivation The theory of motivational drives is based upon some of the fundamental emotions present in humans. The four drives presented in this theory (Nohria, Groysberg, & Lee, 2008), have a direct impact on both behaviour and emotions when they are either neglected or fulfilled. An important feature of this theory is that all drives essentially are independent of one another, and therefore cannot be ordered in a hierarchy system. This means that in order to achieve maximum motivational impact; all four drives must be attended. First, the drive to acquire is defined as an often insatiable drive, as we always want more, and as a relative drive, as people are prone to compare their own success and achievement to that of others. Organisations can address this drive through a reward system, that effectively can discriminate between poor and good performance, and which offers possibilities of advancement. Secondly, the drive to bond accounts for large positive and negative boosts in motivation that is driven by the desire to bond with larger collectives. The way an individual feel within the organisation, is therefore an important feature of motivation, and can be fulfilled by creating an environment that encourages teamwork, collaboration, openness and friendships, as it minimises the occurrence of negative emotions, that creates a loss of morale. Third, is the drive to comprehend, which is defined as the desire to understand and explain situations through the creation of theories and accounts that can suggest reasonable actions and responses. In organisational context, motivation is created through job design that effectively challenge and enables growth and learning, as it stimulates the desire to make a meaningful contribution. Fourth, is the drive to defend, which in this theory, has been extended from the aggressive and defensive behaviour, which is also present in animals. To include the desire to create institutions, which promotes justice, that have clear goals and intentions, and that allows the expression of ideas and opinions, as to increase confidence and the sense of security. The four drives of motivation model (Nohria, Groysberg, & Lee, 2008) theorizes a more complex system of both managerial and organisational factors than anticipated. As research showed, that the perception of immediate managers, was just as important as the four emotional drives, and that managers was rated according to their ability to correctly address all four drives. According to the research, employees also have a realistic view of the manager’s possibilities, and what managers should be capable of doing in order to meet their subordinate’s basic needs. Literature review Impact of feedback and incentives The research provided by (Drake, Wong, & Salter, 2007) builds upon past research that posits, that performance feedback and reward systems can have a significant impact on the perceived employee empowerment, task motivation and overall performance. (Glew, 1995) 12 of 53 In order to widen the scope of research (Drake, Wong, & Salter, 2007) have included the front line workers, because of their critical position concerning organisational performance, as their participation in all phases of manufacturing have increased significantly (Banker & Potter, 1993). The research of (Drake, Wong, & Salter, 2007) includes how three specific types of feedback and two alternative rewards schemes, affect the different dimensions of empowerment. The results derived from the study of (Drake, Wong, & Salter, 2007) shows that the dimensions affected by feedback and rewards had distinct differences. According to their data, the perceived impact of financial feedback was significantly positive, while the perceived impact of performance-based rewards, had a significantly negative effect on both self-determination and perceived competence. (Drake, Wong, & Salter, 2007) Was further able to uncover some implications as to what techniques to employ, to increase the perception of empowerment among non management employees, as high levels of motivation, was only connected with a high level of perceived impact. Participation, Financial incentives and goal setting in motivating employees In this part, I will go through different motivational articles that have a focus on how motivation occurs under the practice of participation, financial incentives and goal setting. First, participation is broadly defined as a conscious and intended effort from the higher levels of an organisation, to provide a more visible and role expanding environment, that encourages the lower hierarchy levels to participate or gain a stronger voice in the areas of organisational performance (Glew, 1995). Research provided by (Spector, 1986) have shown that an employee who has a high perceived control at work, are generally more satisfied, motivated and more committed to the organisation itself. (Perry, Mesch, & Paarlberg, 2006) Presents additional studies, as to explain that the perception of being heard will create a stronger impact on employee satisfaction, than the perception of improvement in decision quality. According to research, participation will have a positive effect, the effect will however only have a limited impact on the employees overall performance (Perry, Mesch, & Paarlberg, 2006). Second is the effect of financial incentive, which according to a Meta analysis study performed by (Stajkovic, 2003), showed that performing organisational behaviour intervention with monetary incentives improved social recognition 17%, feedback 10%, and task performance had a total increase of 23 %. (Stajkovic, 2003) Further found that when applied together, feedback, monetary rewards and social recognition, had a stronger positive impact on performance. In a second meta-analysis that had a focus on the differences between manufacturing and service industries, Stajkovic, Alexander D., and Fred Luthans. Which are presented in (Perry, Mesch, & Paarlberg, 2006) for finding, that where manufacturing organisations produce a strong effect through a combination of financial, nonfinancial and social rewards, service organisations produces the strongest effect through financial reinforcers. 13 of 53 As for goal setting theory (Locke, 2002) argues that challenging goals, have the possibility of stimulating high performance. The research presented by (Locke, 2002) suggests, that task complexity and the dynamic and interdependent nature of tasks, have a chance of creating profound implications for the goals, as too difficult goals, can lead to a decreased performance. (Locke, 2002) Instead suggests goals that embrace the “do your best” mentality, or the encouragement of the exploration of strategies as to tackle tasks, as that leads to improved performance. Review of the Impact of Financial and Nonfinancial rewards of Employee Motivation Aim and theoretical background of study The study of (Kisseloff, Cross, & Shaw, 2011), aims to find if there is a difference in the motivational impact, of financial and nonfinancial rewards system on employee motivational levels, as a proper understanding of the motivational impact and relationship, can help to formulate strategies, that can improve the working environment, productivity and organizational success. (Kisseloff, Cross, & Shaw, 2011) Argues that the challenge of creating a motivational environment is, that employees must be targeted in a variety of ways. This has meant the inclusion of intrinsic and extrinsic rewards and McGregor’s Theory X and Theory X of management styles. The later theory is according to (Buelens-Sinding-Waldstrøm, 2010, s. 18-19), a description of two management styles, where theory X is indicative of close supervision, as it is assumed, that employees dislike and avoids work, while theory Y contains a more positive assumption, where employees are viewed as self-motivating, responsible and creative. Financial rewards Financial rewards are presented in (Kisseloff, Cross, & Shaw, 2011), as being a basic motivator because of the notion, that people attend work in the anticipation of monetary gain, as a mean to attain or continue a certain lifestyle. In that relation, financial rewards are seen as having less long-term impact than nonfinancial rewards in jobs with satisfactory salary, (Dewhurst, Guthridge, & Mohr, 2009) further implies that the motivational impact of financial rewards are short term, and carries the possibility of creating negative outcomes. Elisa F. Topper1, which is presented in (Kisseloff, Cross, & Shaw, 2011) argues that the employees’ sense of accomplishment is replaced with monetary rewards, which has the effect of creating a decrease in employee motivation. (Kisseloff, Cross, & Shaw, 2011) Does however argue, that in high stress working environments, the usage of monetary rewards, might be critical in creating positive motivational impact. Keeping staff motivated in tough times. New Library World, Vol. 110 Issue 7/8, pp.385 - 387 published in 2009 by Emerald Group Publishing Limited 1 14 of 53 Nonfinancial rewards (Kisseloff, Cross, & Shaw, 2011) Defines nonfinancial rewards as being of little cost to the organization, while being a critical motivator to employees. They argue that nonfinancial rewards, creates an environment where employees feels informed and valued, while creating a feeling of employee ownership, and ultimately have the possibility of leading to a sense of accomplishment2. Denka, A. Further argues that while investment in training and development programs stimulates the organizational loyalty and morality through employee growth, managers must still be selective in their delegation of tasks and responsibility, as to ensure, that the employees will benefit from the experience. Denka, A. offers that routine tasks have a high possibility of creating an undesired motivational effect, as they do not offer an adequate challenge, and therefore does not create professional growth. Milne, P. (Kisseloff, Cross, & Shaw, 2011) argues that the inclusion of employee inputs when creating a reward system is of great importance, as it will encourage the commitment of employees, and the accountability of the reward system itself. Results of study The diagrams included here, have been created by the author of this report, and have been created using data supplied by the study of (Kisseloff, Cross, & Shaw, 2011), which have been created as a scale system between 0-10, and it is based on 186 responses, which accounts for an answering percentage of slightly more than 20%. Financial rewards Figure 2 2 Denka, A. Boosting employee morale: Luxury or bottom-line concern in today’s economy? Corporate Finance Review, 14(2), 16-19. 2009 15 of 53 As one might see from the data presented by (Kisseloff, Cross, & Shaw, 2011), the diagram indicates that participants prefer the more solid financial rewards, as they have stronger motivational impacts. These results, might be an indication of the value, that is contributed to reliable and tangible rewards Nonfinancial rewards Figure 3 The results of nonfinancial rewards indicate that growth and management opportunities that keeps employees engaged in the workplace are highly valued, along with organisations, that are capable of creating a work/life balance, education opportunities and offers training and professional development opportunities. This is important information, as this according to theory presented, creates more loyal and productive orientated employees. As one might see from the diagrams, the average score from financial and nonfinancial rewards indicate, that overall nonfinancial rewards are regarded as more important than financial rewards. (Kisseloff, Cross, & Shaw, 2011, s. 18) Further offers data, that directly shows a difference in preference of 8,14%. Additional survey data (Kisseloff, Cross, & Shaw, 2011) Further offers data, in the form of eight questions, as a means to highlight employee agreement or disagreement with statements concerning the motivational impact of actions an organisation might perform. This data, have been created on the basic of a six-scale questionnaire, and have been divided between financial and nonfinancial statements. 16 of 53 Figure 4 Figure 5 First, the financial diagram which clearly shows the importance of financial compensation in return for work, which strengthens the assumption, that financial rewards have basic motivational possibilities. It should however be noticed that the average score for the nonfinancial statements, are 9.54% higher than the financial statements. (Kisseloff, Cross, & Shaw, 2011) Argues that this higher agreement with the nonfinancial statements can be attributed to the feelings of appreciation that are created through the nonfinancial rewards. 17 of 53 Conclusion of study (Kisseloff, Cross, & Shaw, 2011) Concludes that they have found significant proof, that nonfinancial rewards systems have a stronger motivational impact, as it is valued higher than financial rewards. Overall their data showed that four out of six financial rewards, scored lower than the average nonfinancial rewards. They do however note that the importance of creating a diversified motivational system of both financial and nonfinancial rewards system has not declined, as employees require both monetary and non-monetary reward systems to become motivated. A walkthrough of the evolution of motivational theories and incentive systems The fundamental theories: 1900-1969 The first motivational and incentive theories began in the period of scientific management, where the work itself was researched with the goal of optimization and efficiency. Under this system, the worker was viewed upon as lazy and opposed to work. In order to change this perceived attitude, a pay for performance system was created, were the employee became motivated to work harder, as it lead to monetary gain. Mid-century, we see the creation of more employee orientated motivational theories, that seeks to understand employee motivation through the creation of management and need theories, that can explain how to achieve desired employee behaviour. The hierarch of needs theory, the Two-factor theory and Theory X and Y, which were a product of Maslow, Herzberg and McGregor respectively, falls under the content theory, which together with the expectancy theory, was put forward to answer what really motivate people. (Hilmarsson & Rikhardsson, 2011, s. 3-4) Some Criticism emerges – 1970-1979 In this period, the emergence of a more psychological approach to employee motivation is emphasised, as it is argued, that is it through the deeper understanding of human nature, needs and expectations, that appropriate measures might be developed to effectively improve performance, while creating a feeling of job satisfaction. Deci3 (Hilmarsson & Rikhardsson, 2011, s. 4) did in this period build upon the Two factor theory by Herzberg, and found that combining intrinsic and extrinsic motivations, could create inferior motivation. Deci found that satisfying one motivator, would detract the value employees attached to the other, while the superiority of intrinsic motivations, would be suffocated by the extrinsic motivators. Meyer4 (Hilmarsson & Rikhardsson, 2011, s. 4) offers some criticism to the cash bonus incentive systems, as he argues, that they create a demotivating environment that leaves employees unhappy with the rewards they receive. Meyer offers three explanations to why this happens and an alternative cash bonus system. 3 Deci, E. (1976). The Hidden Cost of Reward. Organizational Dynamics, 4 (3), pp. 61-74. 4 Meyer, H. (1975). The Pay-for-Performance dilemma. Compensation Review, 7 (3), pp. 55-63. 18 of 53 First, Meyer argues that the usage of self evaluating employees damage motivation, as employees often will rate their performance to be higher than average, and therefore expects a cash bonus that they are often not entitled to. When this expectation is not fulfilled, the employee is left with the sense of being wronged, or not being important to the organisation. Secondly, scenarios of considerable cash bonuses leads to decreases in performance, as the attention will shift away from the work itself, and instead revolve around the bonus. Thirdly, the competition for bonuses, creates a hostile working environment, where the performance of others is unfavourable distorted. As a means to counter these scenarios, Meyer suggests a system where gradual pay raises are awarded to good performers, along with promotions, increased responsibility and the possibility for professional growth. A shift towards management motivation and strategy: 1980-1989 In the nineteen eighties, the focus shifts from the common worker incentives, to management incentives, as a means to tackle the agency problem, and to link rewards directly to strategy. It is in this period, it is suggested by Stonich5 (Hilmarsson & Rikhardsson, 2011, s. 6) that the implementation of incentive systems that rewards on a long-term basis, and on the achievement of strategic goals should be implemented within organisations. In order to achieve this, Stonich suggests three different approaches, where he suggests that the measurements used should differ accordingly to the strategy used. The second suggestion is rewarding long-term success, with stock or stock options to managers. The third approach is about encouraging managers to make good long-term investments without consideration of short-term goals, by separating capital expenditure towards strategic growth from the performance measurements. Kanungo and Mendonca6 (Hilmarsson & Rikhardsson, 2011, s. 7) further argues, that because managers are using content theory to construct incentive systems, they cannot improve the incentive systems, as the actual motivational impact of the cash bonus is unknown. Instead it is suggested that the expectancy theory should be applied, as the additional analytical data, can provide information on the actual motivational power, giving the possibility of discovering the optimal cash bonus and thereby creating optimal motivation. Strategy and globalization: 1990-1999 Some attention on the role of incentive systems, when concerning strategy still existed in the nineties, as they strove to explain whether strategy dominated the choice of incentive system, or if the systems themselves could support the implementation and overall maintenance of the strategy. 5 Stonich, P. (1981). Using Rewards in Implementing Strategy. Strategic Management Journal, 2 (4), 345-353. 6 Kanungo, R. N., & Mendonca, M. (1988). Evaluating Employee Compensation. California Management Review, 31 (1), pp. 23-40. 19 of 53 Rajagopalan7, which was based on an earlier study8, showed that companies could benefit from creating cash bonus systems, which were tied to the organisational strategy. Interestingly he also finds that the long-term impacts of these different incentives are relatively small, and mainly serves the purpose of aligning manager behaviour, with that of the organisation. (Hilmarsson & Rikhardsson, 2011, s. 8) Interested in the non-monetary rewards, Gupta and Singhal9 finds that organisations, that base their operation on the innovation of their employees, have a much greater reliance on non-monetary rewards to motivate their employees. This is a notion that is supported by Nelson10 as it is argued, that non-monetary reward makes economic sense as they have limited costs, and have the same influence as monetary rewards. He does warn that non-monetary rewards follow rules similar to those of monetary rewards. First, non-monetary rewards should be based on some incentive system, which should be connected to the organisations strategy, and then assigned based on strategic measurements, as not to be perceived as random by the employee (Hilmarsson & Rikhardsson, 2011, s. 9). (Bento & White, 1998) Does under this period argue that in order to create motivation, incentive systems that aim to encourage specific behaviour, has to take into consideration the individual values, as it otherwise can lead to a revolt against the system, or higher than anticipated expenses. Strategy and Herzberg’s theory: 2000-2010 Boyd and Salamin11 finds in a study of organisation outside the US, that organisations using a growth strategy, make greater use of incentive systems, and with a added element of hierarchy that, high ranking managers within these organisations also received the highest cash bonuses. This indicates that there might be a global linkage between incentive systems and strategy (Hilmarsson & Rikhardsson, 2011, s. 9-10). Chiang and Birtch12 argue that culture is not a predominant factor concerning incentive systems, as they find that cultural reactions to incentive systems are Rajagopalan, N. (1997). Strategic Orientation, Incentive Plan Adoption, and Firm Performance: Evidence from Electric Utility Firms. Strategic Management Journal, 18 (10), 761-786. 7 Rajagopalan, N., & Finkelstein, S. (1992). Effects of Strategic Orientation and Environmental Change on Senior Management Reward Systems. Strategic Management Journal, 13, 127-142. 9 Gupta, A. K., & Singhal, A. (1993, May/June). Managing human resources for innovation and creativity. Research Technology Management, 36 (3), pp. 41-49. 10 Nelson, B. (1995). Motivating employees with informal awards. Management Accounting, 77 (5), pp. 30-35. 11 Loyd, B., & Salamin, A. (2001). Strategic reward systems: A contingency model of pay system design. Strategic Management Journal, 22 (8), 777-793. 12 Chiang, F., & Birtch, T. (2007). The transferability of management practices: Examining cross-national differences in reward preferences. Human Relation, 60 (9), pp. 1293-1331 8 20 of 53 not as predictable as suggested by former researchers, as the reaction of people from vastly different cultures might be similar. It is therefore suggested that organisations conduct thorough research before introducing incentive system in other cultures. (Bassett-Jones & Lloyd, 2005) Look into Herzberg’s theory, and find that the intrinsic motivators are still superior to those of extrinsic nature. They do however also find that recognition is no longer an intrinsic motivator, as it no longer generates satisfaction, thereby granting it the characteristic of an extrinsic motivator. Last I would include the study of Lowenstien and Mazar13, who argues that large monetary bonuses can hurt performance in task concerning cognitive thinking. They point to the theory of optimum stimulation, which claims that there is stimulation, that when missed, leads to drops in performance, as the employee will either not be stimulated enough to perform, or the employee will feel pressurised to worker harder than possible (Hilmarsson & Rikhardsson, 2011, s. 10-12). Analytical part Background for study The background for this study begins in the 1960’s, where the economy was on the rise. In Denmark this meant a heavy increase in production demands, which created a hostile work environment, were employees were quickly being worn down. The workforce was able to retaliate to this development through mass strikes, and cooperation with local organisations, students and academics, that helped create awareness around the environmental problems, through critical work environment reports. In the early 1970’s, it became the understanding, that it was becoming increasingly important to focus on a health improving work environment, as research had found, that there was a relationship between a bad working environment and health issues (Hansen & Jensen, 2001). This research resulted in 1977, in the in the acceptance of a work environmental law, that allowed the government, to actively become involved in psychological straining parts of the working environment (Jensen, Leksikon.org, 2001). In the 1980’s, the development in Denmark stopped, as a new government had been elected. This new government reflected the opinion of the opposing employers and public institutions, that was against the interference in their organisational structure, and who denied the possibility of increasing profit by improving the working environment, even though several employers had proven the benefits of creating a more open and healthy working environment. The election of this government, managed to halt the development until the early 1990’s, while Danish law during that period, was reshaped in a European Union picture (Hansen & Jensen, 2001). Ariely, D., Gneezy, U., Lowenstein, G., & Mazar, N. (2009). Large Stakes and Big Mistakes. Review of Economic Studies , 451–469. 13 21 of 53 When the change to a social democratic government became a reality in 1993, it again became important from a government perspective, to look into the psychological working environment problems. This was however still heavily opposed, as it was claimed that it opposed the institutions leadership rights (Jensen, Leksikon.org, 2001). In 1997, in an attempt to create a compromise, it was therefore agreed that the Danish working environment authority, would be allowed to interfere in the psychological working environment problems, that was created directly from the completion of the work task, while they were not allowed to interfere in the governing, or co-operation conditions of the institutions (Jensen, Leksikon.org, 2001). The interest to improve organisations was however already beginning in 1991, as Denmark slowly started a program called Det Udviklede Arbejde14, which was meant to further develop the Danish working environment. The DUA was created as a response to the heighted international competition situation, which had the result of creating the need to improve the public organisational structure by cutting jobs, but without the loss of service levels, while also concerning itself with the private employers desire to improve production performance, through a better handling of work related resources, a reduction in the middle management layers, and a overall better delegation of competences (Jensen, Leksikon.org, 2001). DUA was however more a vision than a operational concept, which complicated any practical experiments conducted, which therefore resulted in DUA being defined as a failure by the Danish government in 1999, as it was not seen as providing much additional information for developing an understanding of DUA, as a development vision or strategy, that was capable of differentiating itself from other strategies, that sees the inclusion of workers as a necessity for creating motivation and improving organizational performance (Jensen, Leksikon.org, 2001). The failure of DUA can be attributed to the lack of method, which resulted in the working environment aspect often being neglected all together. The results of DUA, were also know to be random, as some organisations experienced chaos and conflicts, where others experienced the creation of a flatter hierarchal organisational structure where employees often felt that they gained more competences (Jensen, Leksikon.org, 2001). Data provision In order to explain and analyse the development of the Danish working environment, I will argue for the necessity of using periodically data, in order to enable the possibility of creating both an in depth and well argued analysis. For this purpose, I have chosen to use the research provided by Det Nationale Forskningscenter for Arbejdsmiljø15, which of 1990, have created a five year periodically study on the Danish working environment. 14Det Udviklede Arbejde or DUA – The Developed work, promoted by LO (landsorganisation) as a vison to improve work through the creation of individualistic organisations, that promotes professional growth and the inclusion of workers in the decision process as a way to improve motivation and performance. 22 of 53 The questionaries’ that I will use for this study, is the result of a cooperation between Finland, Sweden, UK, USA, Denmark and the Netherlands, were sixteen questionnaires have been dissembled in order to create one questionnaire at 141 questions and 30 dimensions, were both the physical and psychical working environment is covered. The data extracted from these questionnaires have however been subject to changes over time, and the focus of this study will therefore mainly be for the development in the period of 2000-2005 (Kristensen, 2001). To present this data, diagrams have been created, that shows the partial to complete agreement with the statements provided in the questionnaires, while providing the raw data in the form of dimension separated tables, which can be located in the appendix. I will in the analysis define significant change, be it positive or negative, as at least a five-percentage change. I have further chosen to include a diagram in the appendix, which shows the average data for each dimension, as to help create an overview of the dimensions, and their development. Development in the working environment in the period of period of 1990 and 2000 I will in this section, only perform a brief analysis of the development in the working environment, because the data from the study of 1990 and 1995 is neither freely available nor consistent with data from later studies. I have therefore chosen to limit this part of my analysis, to the dimensions of 1990 and 1995, that are comparable to those of the 2000 study, as it enables me to create a brief explanation of how the psychic working environment developed in those periods, compared to the study of 2000, which includes several additional areas to analyse. Figure 6 http://www.arbejdsmiljoforskning.dk/en which is the National Research Center for the Working Environment or in short NFA 15 23 of 53 The data needed to create this diagram, which shows the development of the psychic working environment in the periods of 1990, 1995 and 2000 have been provided by (Burr, Bach, Borg, & Villadsen, 2002, s. 23) As briefly touched, there is some inconsistency between the different periods, as seen in the lack of role conflict in 1990. We can however see that in 1995, there is significant agreement, with the statement of role conflict being a problem in Danish organisations, which further increases into the period of 2000. The dimension, concerning the amount of attention works requires, can be seen to fluctuate with significant changes over the different periods, and in 2000, we can see that work requires a significant higher amount of attention, than in either of the other periods. Which indicates that the workload in Denmark is increasingly requiring workers being able to concentrate over longer period of time. On a more positive note, the inclusion of the significant improvements, which is located in the amount of information given to workers, and the decrease in workers not allowed to construct their own work, clearly shows a improving working environment, where workers are getting included more in the organisation, and have increased responsibility. The no talking with colleagues and job insecurity, are likewise slowly decreasing, which ultimately is helping to improve the psychic working environment, and have the benefit of improving employee sense of belonging, and performance. Development in the working environment in the period of 2000 and 2005 Because of the sheer amount of data, and the complications of providing the reader with a proper understanding of not just the dimensions, but also the data itself, I have chosen to separate the dimensions, and so that I may explain them separately, as it creates a opportunity for better overview and overall understanding. Quantitative demands The quantitative demands, is defined as the relationship between work, and the time there is available for its completion. This means that, in cases of limited time for the completion of a task, a higher speed of work is demanded. In work situations, this will often result in the need to bring work home, or stay after hours, which can end in a decrease in the quality of work or the delegation of unfinished tasks to others (NFA, 2011). 24 of 53 Figure 7 - Quantitative Demands Quantitative Demands 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 86.30% 88.90% 74.80% 65.90% 66.60% 38.70% 53.70% 39.70% 2000 2005 Is it necessary to Is your work How often does it Is it necessary to work very fast? unevenly given, happen, that you work extra? so that it grows? do not manage to complete all tasks? As can been seen from the diagram, the need to work fast, is not only deemed high by almost the entire working force, it still increases during the analysis period. If we look at table 1 in the appendix, we can even see that the part of the working force, that always have to work fast, increases to almost the double in this five-year period, while he amount of workers who have rarely or never have to work fast, decreases. Second, we can see that during this period, that overall work related task are given more evenly, decreasing the likelihood of getting behind work. It should however be noticed that according to the data presented in table 1, that while this part of the dimension is generally improving, the amount of workers that often receive unevenly given tasks is growing. The third part of the dimension, has not significant changes as such, an argument that is supported by the data in table 1 that shows that the only real increase, is in the amount of workers that sometimes does not manage to complete all tasks. The fourth and last part of this dimension shows, that the necessity for additional work has decreased significantly over this period. Sub-conclusion I will argue that overall the psychic working environment has experienced a slight improvement in this period, as the improvement of delegation of tasks and need to work extra, creates a more manageable environment, where the employees have a better idea about how big an amount of work to expect, an the hours needed to fulfil these tasks. The reason that I do not state this as an big improvement, is because of the significant increase there has been in workers that need to work fast at all times, which adds to the creation of a stressful environment, where more task related mistakes are to be expected. Cognitive demands This dimension is about making decisions, remembering, idea creation and having a great overview, and is mostly found in areas of management, research, teaching, communication and project work (NFA, 2011). 25 of 53 Figure 8 - Cognitive Demands Cognitive Demands 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 92.50% 91.20% 91.10% 61.50% 94.30% 81.50% 84.40% 65.70% 2000 2005 Do you have to Does your work Does your work Does your work have a overview demand that you demand, that you demand that you of several things make though remember a lot? are good at at a time, in your decisions? getting ideas? work? First, we can see that work overall demands an ability to oversee several things at once. This need while decreasing slightly in this period has no significant changes, as it can also be seen from table 2 of the appendix. Second, we can see that there is as slight increase in the amount of workers that has experienced the need to make though decisions in their work. From table 2, we can however also see a significant increase in the workers that never experiences this need. We can see from the third part of the dimension that work, overall demands a strong ability to remember. Which increases slightly over this period to encompass almost the entire working population. From table 2, it can be seen that there are no directly significant changes. Lastly, it can be seen that the amount of workers that need to provide ideas at work, includes a major part of the working population, and that they have experienced an increase over time. From table 2 it can further be seen, that this increase can be attributed to the amount of workers that sometimes contributes, as the amount of workers, that always contributes is dwindling. Sub-conclusion I will argue that his dimensions shows a steady increase in the responsibility given to employees, as the areas of the dimension concerning decisions, remembering and the creation of ideas all improve during this period. The benefit of this higher responsibility, with the decrease in the need to oversee several things at once, I will assume creates a working environments with more loyal and motivated employees, as higher inclusion and responsibility creates a sense of belonging to an organisation, while the decrease in overview, leaves more time for individual tasks, which might further decrease the likelihood of errors. Emotional demands This dimension is about the demands that are put to the workers emotions, their ability to imagine the situation of others, to show compassion and 26 of 53 understanding. This is an important dimensions, as difficult work related situations, can have an impact on the employees personal life, the psychic wellbeing and life quality (NFA, 2011). Figure 9 - Emotional Demands Emotional Demands 56.00% 54.00% 52.00% 50.00% 48.00% 46.00% 44.00% 42.00% 40.00% 50.30% 51.80% 51.90% 54.10% 50.10% 45.70% 2000 2005 Does your job, bring you in emotional straining situations? Is your job, emotional Are you emotionally straining? touched by your work? The first part of this dimension, is about whether employees are brought in emotional straining situations, which we can see have increased slightly over this period. From table 3 of the appendix, we learn that this increase comes from the amount of workers that sometimes, rare and never experiences this in their job. Second, we can see that the amount of workers that experience their job as emotional straining, is steadily increasing to over half of the working population. Last, we can from the diagram see a 4% increase in the amount of workers that are emotionally touched by their work. If one looks a table 3, it is clear that this increase mainly comes from people that are either often or sometimes affected. Sub-conclusion Considering that more workers find that, their work, is affecting them on an emotional level and consider their work as emotional straining. I will argue that this dimensions shows a clear degeneration of the working environment, as the workers personal life and mental health have a risk of being affected by this development. Demand to hide Emotions This dimension is about the need to hide ones emotions and revolves in practice around the negative reactions or opinions that an employee are demanded to keep from clients, colleagues or costumers (NFA, 2011). 27 of 53 Figure 10 - Demand to Hide Emotions Demand to Hide Emotions 60.00% 50.00% 40.00% 30.00% 45.10% 47.90% 35.70% 36.30% 2000 2005 20.00% 10.00% 0.00% Does your job demand that you do not say your opinion? Does your work demand that you hide your emotions? As can be seen from the diagram, there is only a slight increase in whether ones job demands an employee to not say opinions. This lack of significant development is further showed in table 4 from the appendix, where it is visible that there are no significant changes whatsoever. Second, the diagram shows a minor increase in the amount of workers that are demanded to hide their emotions during work. From table 4, it can be seen that this increase mainly comes from those, that often or sometimes have to hide their emotions, as those that are always demanded have decreased. Sub-conclusion The increase in this dimension, shows that it has become increasingly important for employees to act friendly and open towards clients, colleagues or costumers, which I will argue can lead to a unhealthy environment, if there is no limit to when an employee is allowed to went his/her opinion about a situation, as it without cannot lead to an improvement or solution of the situation. The development as a whole can however not be defined as significantly negative, as the change is only minor. Influence The influence one has in the workplace, is one of the more important dimensions, as research has shown that a low influence in ones work has a direct influence on employee motivation, performance, productivity and quality (NFA, 2011). 28 of 53 Figure 11 - Influence Influence 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 84.70% 80.20% 83.90% 54.30% 46.70% 60.20% 78.10% 48.90% 2000 2005 Do you have a big Do you have Do you have a DO you have influence on influence on influence on your influence on, decisions on whom you have workload? what you do at work? to work with? work? It can be seen from the diagram, that the amount of workers that has an influence in their work is rather high, and almost contains the entire population. When we look at table 5 from the appendix, it can see that a major part of this comes from workers that often have a saying in their working environment. There has however, been a slight decrease in workers who always or often have an influence on decisions in work during this research period. The second part of the diagram shows a significant decrease in the influence, workers have on whom to work with. From table 5, it can further be seen that this decrease in influential power, mainly comes from the amount of workers that always or often have a saying. It can furthermore be seen from the third part of the diagram and table, that the Danish workers have significantly less influence on their workload as their influential power have decreased significantly over the period of this study. The last part of this dimension shows no significant changes in the diagram, but according to the table, there has been a significant change, as the amount of workers that always have an influence, have decreased, while the amount that often have an influence have had a significant increase. Sub-conclusion If can be seen form the diagram and tables, that Danish workers have a rather big influence on work as a whole, as almost 84 % of the working population claims to be influential in their work, while also being rather influential in what to do while at work. I will therefore argue, that the development in the working environment has not decreased by as much as one might first initially assume, as the main decreases within the dimension, are located with workers that always or often have a saying, while increasing with those that sometimes are influential. The decrease in the dimension is however still significant, and it should therefore be assumed that motivation, performance, productivity and quality of work, have decreased as a result of workers being less able to construct their work day, and have less power over assigned tasks. 29 of 53 Growth opportunity Research shows the importance of stimulating growth and creating growth opportunities, as employees without, tend to do worse than their counterparts, have more sick leave and health problems. This dimension is together with the dimension of influence, an important part of previously mentioned program DUA. Figure 12 - Growth Opportunity Growth Opportunity 98.00% 96.00% 94.00% 92.00% 90.00% 88.00% 86.00% 84.00% 82.00% 80.00% 94.40% 96.20% 87.30% 90.90% 90.40% 91.50% 88.30% 2000 85.80% Is your work varied? 2005 Does your work Do you have the Can you use your demand that you opportunity to skills or abilities are initiative? learn through on your work? your work? The diagram shows that employees during the period of this study have increased slightly to nearly encompass the entire population on almost all parts of the dimension. It can be seen from table 6 of the appendix, that the three parts that are experiencing the minor increases are similar in a way, as they all decrease for workers that always receive varied work, are required to be initiative or if they can use their skills or abilities during work. The only decrease can be found with workers actually receiving the possibility for growing or learning through work. From table 6, it can be seen that there are significant decreases for employees that always or often receive learning opportunities, while there is a significant increase in employees that sometimes receive this opportunity. Sub-conclusion We see from the diagram and table that the growth opportunities available for Danish workers, have experienced positive development on all aspects but the prospect of learning through work, which according to theory of four drives, might affect the workers desire to make a meaningful contribution within their organization. The overall development of the dimension is however positive, and I will therefore argue that the incentive received by workers for growing within their work, has increased during the period of study. Meaning in work Lack of meaning in work, is seen as one of the main stressors of work. As being able to see a meaning with ones work, means that one can relate it to some values or goals that are beyond the monetary gain and being employed. 30 of 53 Meaningful work can therefore be said to make it easier to look beyond the problems one might encounter during the work day, making sure that one is not focused on the negative aspects of work (NFA, 2011). Figure 13 - Meaning in Work Meaning in Work 100.00% 99.00% 98.00% 97.00% 96.00% 95.00% 94.00% 93.00% 92.00% 91.00% 99.20% 96.10% 96.90% 98.00% 96.70% 2000 94.20% Are your working tasks Do you feel, that you important? offer an important contribution? 2005 Do you feel engaged and motivated in your work? As can be seen from the diagram, organizations seem to have incorporated these factors to a great extend in Denmark, as they all are close to capturing the entire working population, with only small increases or decreases during the period of research. First, we can see that the importance of working tasks, as the only part of the dimension that has improved over this period. Second, it is visible from table 7 of the appendix, that the amount of workers that feel that they offer an important contribution to their work, have had a major decrease in the amount of workers agreeing in a very high degree. Last, we see that employees have had a significant decrease in feeling engaged and motivated in their work, where it can be seen from table 7 that, it is mainly due to a decrease in workers agreeing very strongly. Sub-Conclusion While this dimension shows a negative development, it should be noted that this development is not large enough to be deemed significant, and it should therefore be concluded that, the meaning of ones work has not decreased during this period. Involvement in work This dimension is closely connected with the previous one, as this one also concerns itself with engagement, motivation and meaning. But contrary to meaning in work, this dimension revolves around the individuals’ involvement in work. Behind this dimension, is the desire to integrate the individual at the workplace, as it will make them identify themselves more with the goals of their workplace. 31 of 53 Figure 14 - Involvement in Work Involvement In Work 86.00% 84.00% 82.00% 80.00% 78.00% 76.00% 74.00% 72.00% 70.00% 68.00% 82.30% 77.10% 84.60% 80.00% 75.00% 2000 74.70% Do you enjoy telling others about your workplace? Do you feel, that the problems of the workplace are also yours? 2005 Do you think that your workplace has a big personal meaning to you? From the diagram, we can see that Danish workers are rather well integrated into the working environment, as all aspects seem to envelop a big portion of the working population. The first and third part of this dimension does however only show a minor nonsignificant increase in the dimensions, while the second part has experienced a slight decrease. From table 8 in the appendix, it is further visible that the only significant change in any of these dimension parts, is the drop of 5% from 20002005, in the very high degree agreement, that the problems of the workplace is also the workers. Sub-conclusion On basis of this data, it can be concluded that the desire one feels to bond with their organization (Nohria, Groysberg, & Lee, 2008), cannot be deemed to have significantly improved over this period. I will however include that the positive developments suggests, a working environment, where workers are increasingly receiving incentives for becoming more integrated into their organizations. Predictability This dimension is another of the main dimensions concerning stress, as research has shown that a lack of predictability is one of the major factors behind a stressful working environment. This dimension therefore concerns itself with whether workers receive information about important changes or the necessary information for the proper completion of tasks (NFA, 2011). 32 of 53 Figure 15 – Predictability Predictability 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 89.30% 75.30% 90.00% 76.70% 2000 2005 Do you receive information about Do you receive all the information important decisions, changes, necessary to perform work well? future plans etc. in decent time? As can be seen from the diagram, almost all Danish workers receive information about both the important decisions, and the information needed to perform well. The diagram also shows that there has been a minor positive development during the period for this study. From table 9 of the appendix, it is further visible that the first part of this dimension has decreased slightly for workers that agree very strongly, while improving significantly for people that partially agree, and slightly for those that only agreed very poorly. The second part of the dimension has experienced more or less the same development, as it also has increased slightly, while having some minor improvements on all but the very high degree. Sub-conclusion The dimension for whether work is predictable, has not developed significantly during this period, as there have only been minor changes. I will however include that on the basis of table 9 in the appendix, there has been some improvements, as less people answer in a very poor degree, which leads to the assumption that less low-level hierarchy employees are kept in the dark. Role clarity Role clarity is one of the more classical dimensions in social psychology, where every role is characterized by a list of expectations that explains what exactly the role contains and its tasks. An aspect of role clarity could be where all the working tasks, and competences needed to complete them are laid out (NFA, 2011). 33 of 53 Figure 16 - Role Clarity Role Clarity 99.00% 98.00% 97.00% 96.00% 95.00% 94.00% 93.00% 92.00% 91.00% 90.00% 89.00% 97.10% 97.90% 97.20% 97.70% 97.50% 2000 2005 92.50% Are there clear goals for Do you clearly know, your work? what you areas of responsibility are? Do you know exactly what there is expected of you at work? It can be seen from the diagram, that there is a high sense of role clarity in the Danish working environment, as all parts of this dimensions are close to including the entire working population. But as the diagram and table 10 from appendix shows, role clarity has not improved during the period of this study, as the dimension has had negative developments on all aspects. Sub-conclusion It is my opinion that the decrease on all aspects of the dimensions, justifies the conclusions, that the dimensions as a whole has experienced a significant negative development during the period of this study and, that it therefore can be said, that role clarity as a whole has significantly diminished. From the diagram we see that a major part of this negative development comes from the decrease in clarity of goals, which according to goal theory leads to decrease in performance for both individuals and groups. Role conflict This dimension can be separated into two parts, where one revolves around the contradicting demands a worker might experience, and the ethical conflicts where a worker is demanded to break the law in order to perform his/her job. It is therefore important that these conflicts are not present in the working environment, as they can be long term, and severely straining for the employee (NFA, 2011). 34 of 53 Figure 17 - Role Conflict Role Conflict 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 55.20% 38.30% 44.60% 59.70% 55.30% 68.30% 49.40% 63.40% 2000 2005 Are there put Do you perform Do you sometimes, Do you sometimes contradicting something in your have to perform have to perform demands to you in work that is something, in stuff in your work work? accepted by some, another way than that seems but not by others? you are supposed unnecessary to to? you? The first part of the dimension shows that there during the period for this study, has been a significant increase in workers feeling, that they are receiving contradiction demands in their work. It is further visible from table 11 of the appendix, that less people during this period are rarely receiving contradiction demands. The second part of this dimension seems to be the only part that has not increased significantly during the period. From table 11 it can be seen that there has only been minor changes within the data. The third and fourth part of the dimension, has however had significant increases during this period, and it can from table 11 be seen that there has been some major increases in the amount of workers, that highly or partly agree with the statements. Sub-conclusion On basis of the brief analysis of the development of role conflicts, I will argue that the working environment has experienced a significant negative development during this period. My argumentation for this is that as workers are receiving significantly more contradicting demands, work tasks that cannot be solved in the ordinary manner and an increase in unnecessary tasks, there is increased risk of creating an unhealthier working environment. I have assumed that this negative development has worsened employee motivation and performance, as workers are likely to feel immoral and, that their contribution is not important for the survival of the organization, as there is a big increase in employees receiving tasks that are deemed unnecessary. This development may also further the development of stress and job dissatisfaction, and should therefore be taken into immediate consideration, as it might spiral into internal conflict. 35 of 53 Management quality The importance of proper management quality, and the role of a good manager are important features if one wishes to secure employee motivation and satisfaction. This dimension will therefore revolve around how close management quality affects the psychic working environment (NFA, 2011). Figure 18 - Management Quality Management Quality 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 80.20% 79.50% 73.40% 82.80% 79.70% 71.10% 75.10% 74.60% 2000 2005 Making sure that the individual employee, has great growth opportunities? At prioritizing the well being highly? At planning work? At solving conflicts? The first and fourth part of this dimension has not experienced any significant changes during the period for this study. From table 12 of the appendix, it is further visible that there have only been minor changes in the numbers as well, indicating that there has been not any important development in those two parts. The second part of the dimension has as the only part increased significantly. From table 12, one can see that this increase in mainly from workers that in a high degree feel that the importance of their well-being has increased. Last, the third part of the diagram shows a significant decrease in manager’s ability to plan work. From table 12, it is learned that this decrease, is mainly from participants agreeing partially about manager’s ability to plan work. Sub-conclusion If one looks as the development of the dimension as a whole, then there has been no significant changes or development during this period. I will however argue that there has been a minor positive development during this period, as I have assumed, that the high degree increase in the well- being carries a stronger impact than the decrease in the partial agreement for how well work is planned. It is therefore also my assumption, that motivation and satisfaction with ones work has improved during this period. The importance of resolving the decrease in managers’ ability to plan work should be included, as a negative perception of managers abilities in just one area can have a devastating impact on the overall impact, as stated in the Four Drives of Motivation. 36 of 53 Social support in work In psychic social research, lack of social support is one of the main dimensions for determining stress. Research into this dimension has shown that a lack of social support results in poorly managing workers, increased stress, sickness and mortality. This dimension therefore investigates if there is social isolation or support from either co-workers or managers (NFA, 2011). Figure 19 - Social Support in Work Social Support in Work 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 84.20% 80.60% 94.30% 88.00% 88.30% 74.80% 92.00% 79.10% 2000 2005 How often do you How often are How often do you How often is your receive help and your coworkers receive help and close manager, support from willing to listen support from willing to listen coworkers? to your problems close to your problems with work? management? with work? As can be seen from the diagram, a high proportion of the Danish working population enjoys high amount of social support in their work. First, we see that the first and second part of this dimension, have decreased within this period, with the second being significant. From table 13 of the appendix, it is learned that this negative development is especially true for those always receiving support or being in the presence of coworkers that are willing to listen to ones problems. Second, table 13 shows that while the third and fourth part of this dimension does not have an increase big enough to be deemed significant, the improvements are spread on the whole line. Sub-conclusion The development during this period shows, that while the interaction with coworkers have decreased, we have had, an almost similar increase in the interaction between employees have with their close manager. As a whole it can therefore be assumed that the dimension has not had a significantly negative development. I will however stress the importance of the possibility to interact with ones coworkers, as they can provide an employee with unique, accurate and reliable feedback that might improve motivation and performance. It should also be noted that the development of social support in work, indicates that managers have an increasingly closer relationship to their employees, which in turn strengthens the employee perception, and the impact of feedback. 37 of 53 Feedback This dimension is about getting feedback from colleagues and superiors about how well you function in the workplace. Most employees, receives indirect feedback several times a day, where they will have to guess how to understand and apply it. Feedback have to be specific as to not dilute it or for it to improve performance or motivation (NFA, 2011). Figure 20 – Feedback Feedback 70.00% 60.00% 50.00% 52.70% 58.60% 50.00% 61.40% 40.00% 30.00% 2000 20.00% 2005 10.00% 0.00% How often do you talk with coworkers, about how well you perform at work? How often do you talk with your superior about how well you perform at work? The diagram shows that there have been significant increases on feedback from both coworkers and superiors during the period of this study. We can see from table 14 of the appendix, that feedback from coworkers mainly have increased with employees that sometimes receive it, while feedback received from superiors, has had a even larger improvement during this period. Sub-conclusion If one is to assume that feedback is received in time and in positive situations rather than negative ones, then it can be argued that there has been a significant positive development in the working environment from this dimension. I argue as such, because feedback in positive situations and in time, from both coworkers and superiors, help improve the sense of accomplishment in an employee, stimulating their desire to perform more and better in the future. The increased feedback from superiors might also help improve employee’s willingness to contribute ideas, as argued by (Bassett-Jones & Lloyd, 2005). Social Community This dimension revolves around the social community in the workplace. This is included, as a major part of employees’ time is spent at the workplace, under the influence of the environment, and it therefore has a big influence on the mood and performance of employees (NFA, 2011). 38 of 53 Figure 21 - Social Community Social Community 100.00% 98.90% 98.00% 96.00% 97.30% 96.00% 94.00% 94.00% 93.70% 92.00% 92.50% 90.00% 2000 2005 88.00% Is there a good atmosphere between you and your coworkers? Is there a good Do you feel like part of cooperation between the community at your colleagues at your work? work? One can se that a high proportion of the working population, is in fact included in the social community. It is however also visible, that as a whole the social community has declined significantly during the period of this study. If one is to separate the dimension, there has however not been a significant decrease to any of the parts as such. From table 15 of the appendix, it can be seen that it is mainly the section of always that have decreased throughout this period. Sub-conclusion I will argue that when evaluated as whole, the dimension has experienced a significant negative development during this period. This is further supported by table 15, which shows that it is becoming less common, being a part of the social community. This development should be corrected, as further negative development, will cause workers to feel excluded from the organization, which will negatively affect the performance and motivation of those workers that feel like less part of the organization. I will assume, that the decease in the social community is connected to the decrease in social support received from coworkers. Insecurity at work This dimension is about the insecurity workers might feel, as the Danish workplace does not have strong traditions for protection the employees against firing or transfers. According to studies, the security of an employee is instead dependent on the economic situation and the demand for workers in the exact area of employment (NFA, 2011). 39 of 53 Figure 22 - Insecurity at Work Insecurity at Work 50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 43.70% 27.40% 21.50% 24.80% 15.50% 5.60% 15.00% Becoming unemployed? 16.80% 2000 2005 That because of Facing difficulties Getting new technology, finding a new job transferred you become in case of against your will? replaced? unemployment? We can see from the diagram that the only significant changes during this period is the increase in fear of becoming replaced by new technology and the belief that one might face difficulties finding a new job in case of unemployment. Workers have in this period only placed a minor increase in fears of becoming unemployed or getting transferred against their will. Sub-conclusion On basis of the data provided, I will argue, that there has been a significantly negative development in the amount of security workers have in their jobs. Whether this increase in insecurity can be attributed to the IT crisis of early 2001, which changed the economic situation, is unclear from the data provided. This increase in insecurity at work is however damaging to the working environment, it is know from theory, that workers are not motivated in market or industries where they are insecure about their future prospects. Job satisfaction The dimensions of job satisfaction is known as the general goal for quality of the working environment and have been applied in several investigations. A low satisfaction in ones job is here connected with stress, being burned out, sick leave, a bad health, a high medicine consumption and bad productivity (NFA, 2011). 40 of 53 Figure 23 - Job Satisfaction Job Satisfaction 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 82.20% 75.40% 88.30% 79.10% 76.30% 82.80% 92.90% 88.40% 2000 2005 Your future prospects? The physicworking environment? The way, that your abilities are used? Your job, everything considered? First, we can see that there has been a significant decrease in the amount of workers that are satisfied with their future prospects. From table 17 in the appendix, one might see that this decrease, mainly but not exclusively comes from the satisfied section. We also see a significant decrease in the amount of workers that deem that their abilities are not being used to the full extend. Secondly, we see from the diagram, that the second and fourth part of the dimension has not had any significant changes during the period. Table 17 does however further highlight, that there has happened decrease, which can be located with workers that are very satisfied with the statements. Sub-conclusion I will argue that employees satisfaction with their jobs have decreased significantly over this period, which might indicate that organizations are neglecting the intrinsic aspects of motivation, that can improve this dimension. I will however also argue, that the level of satisfaction is still rather high considering, that the data for this analysis consists of several industries and job types and research into the development for job types might be necessary to create a further understanding. Somatic Stress Symptoms This dimension is about somatic stress the physiological logical changes it can inflict on the body. This is important to investigate, as long-term somatic stress can lead to increases in hearth diseases, and can put a strain on the working environment, as it also affect ones colleagues. Somatic stress is often connected to poor management quality (NFA, 2011). 41 of 53 Figure 24 - Somatic Stress Symptoms Somatic Stress 60.00% 51.80% 50.00% 40.00% 30.00% 32.40% 22.80% 20.00% 2000 2005 12.50% 10.00% 0.00% 9.10% Had stomach problems and/or pain? 5.60% Been dizzy? Had tensions in different muscles? From the diagram, it is clear that there during the period of this study, there has happened a rather positive development in the dimension of somatic stress, as all parts have significantly decreased. It can however be seen from table 19 in the appendix that there has been a significant increase in the amount of workers that claim to always have muscle tensions. Sub-conclusion I will argue that the positive development in this dimension is rather clear, as all aspects have improved greatly over this period. It is however concerning that the amount of workers that experience muscle tensions is still so high, and that it have experienced an increase in constant muscle tension. My conclusion is however still, that the improvement in somatic stress reported by workers, indicate a healthier working environment, where the well being of employees receive more consideration, an assumption that is supported by the dimension of management quality. Cognitive stress symptoms This dimension is about the thought related processes that might cause stress, which can be seriously damaging in the working situation, as it increases the risk of loosing attention and making fatal decisions in pressed situations (NFA, 2011). 42 of 53 Figure 25 - Cognitive Stress Cognitive Stress 30.00% 25.00% 18.50% 20.00% 15.00% 24.00% 21.70% 14.90% 16.70% 17.10% 16.70% 10.00% 2000 2005 8.40% 5.00% 0.00% Had concentration difficulties? Had problems making decisions? Had difficulties remembering? Had difficulties thinking clearly First, we see that there have been significant decreases in the amount of workers that have experienced concentration difficulties. From table 20 in the appendix, it is further learned, that this decrease mainly comes from workers that sometimes experienced this problem. Second, there has during this period also been a significant decrease in the amount of workers that has had problems with making decisions, and difficulties remembering. From table 20, we can see that while there has been a minor increase in those always and often having these problems. There has been a huge improvement at those that sometimes felt these problems. Last, we see a non-significant increase in those having difficulties thinking clearly, from table 20, it can however be learned, that this increase comes from a heavy decline in those that never had those difficulties before. Sub-conclusion I will argue that this dimension have developed positively throughout this period, I will however comment that, the increase in cognitive thinking, might be a result of faulty stimulation as suggested by Lowenstien and Mazar, where workers might be pressurized to work harder than possible. This is however just an assumption, as the data available does not grant the opportunity for investigation. Conclusive part The development of the psychic working environment First, I will argue that in order to make a supported conclusion for determining whether the psychic working environment has experienced a positive or negative development, it is necessary to assume, that each dimension carries the same weight and impact on the environment as a whole. With this assumption in place, I will argue that during the period of 1990-2000, which was briefly analyzed in this study, there was seen a improvement of the psychic working environment, as the positive changes in information received by 43 of 53 workers, job security, social community and self construction outweigh the negative changes, that was seen in role conflicts and attention demanded by work. Concerning the main analysis for this study, I will conclude, that the psychic working environment has not developed positive during the period of the in depth investigation. I am concluding as such, because the majority of the dimension, which has been analyzed, showed that workers are increasingly receiving less positive motivational incentives within their work. It has been seen from the analysis that workers has less influence in their work, less job satisfaction, more role conflict, a deterioration of the social community etc. This development, I will assume can be attributed to the increased demands the competition situation is placing upon the working environment, and I therefore find it important to mention, that the positive improvements, that have been made in areas such as feedback and stress, still carries their motivational and environmental impact, and therefore should not be disregarded as not being important improvements of the environment, as their effects can help to soothe and motivate employees to overcome stressful situations. Motivational theories and the Danish psychic working environment During the 1970’s, there was a big change in the general perception of motivation, as it became increasingly emphasized in motivational research, that there was a necessity of considering the psychological aspects of work, as it was found that proper stimulation, could improve employee performance, and their sense of job satisfaction. In Denmark, we see in this period a similar development, as it is recognized here, that there is relationship between health issues and a bad working environment. The realization that the environment had such an profound effect on the health of workers, meant the acceptance of law in 1977, that actively allowed the government to become involved in psychological straining parts of the working environment. In the 1980’s we see that while motivational theories begins to define management as a separate body that requires motivation and guidance, in order to construct effective incentive systems, and to make the right organizational decisions, the development of the psychic working environment in Denmark had come to a standstill. As the newly elected government, reflected the opinion of the opposing organizations and institutions, which opposed the increased interference in their organizational structure, and who contrary to the empirical evidence, denied the possibility of increasing profit, through an improved working environment. In the 1990’s research into motivation found, that in order to encourage a specific behavior, it was necessary to take into consideration the values of the individual, as to avoid the occurrence of increased expenses or revolts against the incentive system. It was further found in this period, that non-monetary systems, followed the same rules as monetary ones, and had the same influence. In the 1990’s we see in Denmark, not only the creation of DUA, that was to function as a response to the heighted international competition situation, but also the reelection of a government, that desired to improve the working environment, through governmental laws. 44 of 53 From the empirical data and literature presented in this study, it is therefore indicated that not only is the Danish workforce receiving the necessary incentives for improving the perception and conditions of the psychic working environment but also, that Danish researchers are actively striving to learn from past developments, so that they might suggests actions for future improvements. With the support of the material presented in this study, I therefore argue for the possibility of a linkage between research into motivational theories, and the development of the Danish psychic working environment, as it seems that the development of strategies are necessary for the continued improvement and understanding of what has an influence, and by how much. Recommendations In this section of the report, I would like to state some of my own recommendations the continued exploration of topic and improvement of report. First I would recommend a co-operation with NFA, as a means to obtain the raw data for the psychic working environment of 2010, as the additional data would enable a more in depth analysis of the development, and grant the possibility of further concluding, whether Danish organizations, focus more heavily on the psychic working environment during times of economical crisis, as suggested by the theory presented in this study. 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Harvard Business Review , 1-6. Perry, J. L., Mesch, D., & Paarlberg, L. (2006, July-August). Motivating Employees in a New Governance Era. The Performance Paradigm revisited , 1-10. Spector, P. E. (1986). Percieved Control by Employees. A Meta-Analysis of Studies Concerning Autonomy and Participation , 39, 1005-1016. 46 of 53 Stajkovic, A. D. (2003). Behavioral Management and Task Performance in Organizations . Conceptual Background, Meta-Analysis, and Test of Alternative Mod , 155-184. Topper, E. (2009). Keeping staff motivated in tough times (Vol. 110). Emerald Group Publishing Limited. Appendix Tables For Dimensions 2000/2005 Table 1 – Quantitative Demands Quantitative demands Always Often Sometimes Rare Never/almost never 10,1% 3,6% 8,8% 2,7% 16,9% 8,3% 19,1% 16,2% 40,7% 20,6% 41% 19,2% Is it necessary to work very fast? Is your work unevenly given, so that it grows? How often does it happen, that you do not manage to complete all tasks? 6,6% 13% 3,9% 3,9% 2,2% 1,3% 35.6% 36,6% 31,7% 39% 12,6 12,1% 44,1% 39,3% 39,2% 23% 23,9% 26,3% Is it necessary to work extra? 2,6% 2,4% 21,1% 42,9% 13,7% 37,6% Cognitive demands Always Often Do you have to have a overview of several things at a time, in your work? Does your work demand that you make though decisions? Does your work demand, that you remember a lot? Does your work demand that you are good at getting ideas? 29,6% 43,8% 29,2% 39% 20,9% 12,1% 29,6% 16,8% Table 2- Cognitive Demands 5,1% 5,1% Sometimes Rare 19,1% 23% 22% 34,4% 25,2% 35,4% 6,6% 5,5% Never/almost never 0,8% 3.3% 24,9% 6,5% 24,1% 10,3% 33,4% 41,7% 16% 32,1% 44,4% 17,8% 5,6% 3,9% 3,2% 1,9% 18,1% 36,6% 26,8% 14,6% 36,7% 33,1% 12,1% 6,5% 10,9% 4,7% Table 3 – Emotional demands Emotional demands Always Often Sometimes Rare Never/almost 47 of 53 Does your job, bring you in emotional straining situations? Is your job, emotional straining? Are you emotionally touched by your work? 2,6% 2% 17% 16% 30,7% 33,8% never 31,2% 18,6% 28,9% 19,3% 5,3% 6,4% 5,1% 4,4% 14,3% 15,1% 13,5% 15,9% 26,1% 30,4% 31,5% 33,8% 29% 31,7% 26,4% 28,5% 25,4% 16,5% 23,5% 17,5% Table 4 - Demand to hide emotions Demand to hide emotions Always Often Sometimes Rare Does your job demand that you do not say your opinion? Does your work demand that you hide your emotions? 2,2% 1,8% 8,3% 25,2% 9,3% 25,2% Never/almost never 30,3% 33,9% 32,4% 31,3% 4,8% 2,6% 6,1% 34,2% 8,9% 36,4% 28,6% 26,2% 30,7% 21,5% Table 5 - Influence Influence Always Often Sometimes Rare Do you have a big influence on decisions on work? Do you have influence on whom you have to work with? Do you have an influence on your workload? Do you have influence on, what you do at work? 17,9% 18,1% 42,1% 41,1% 24,7% 24,7% 11,1% 11,4% Never/almost never 4,3% 4,7% 10,7% 5,9% 21,8% 16,1% 21,8% 24,7% 22,7% 24,8 23% 28,4% 14,7% 5,1% 21,1% 17,8% 24,4% 26% 24% 30,2% 15,8% 20,9% 24,7% 15,5% 30,8% 35,7% 24,7% 26,9% 14% 14,9% 5,8% 7,1% Table 6 - Growth Opportunities Growth opportunities Always Often Sometimes Rare Is your work varied? 32,2% 30,5% 21,6% 14,1% 42,8% 41% 39,5% 44,5% 14% 19,4% 29,3% 32,9% Does your work demand that you are initiative? 7,5% 6,5% 5,8% 6,5% Never/almost never 3,6% 2,7% 3,8% 2% 48 of 53 Do you have the opportunity to learn through your work? Can you use your skills or abilities on your work? 22,7% 42,6% 23% 16,5% 37,2% 32,1% 8,2% 3,2% 10,5% 3,6% 35,6% 45,5% 13,3% 26,2% 55,2% 14,8% 3,4% 2,4% 2,2% 1,3% Table 7 – Meaning in Work Meaning in work Are your working tasks important? Do you feel, that you offer an important contribution? Do you feel engaged and motivated in your work? In Very high degree 29,3% 22,9% 42,1% 25,9% I high degree Partly In poor degree In very poor degree 1,4% 0,7% 0,2% 0,3% 47,9% 53,4% 45,5% 56,6% 18,9% 20,6% 11,6% 15,5% 2,6% 2,5% 0,7% 1,7% 31,4% 20,8% 47,4% 50,2% 17,9% 2,6% 23,2% 4.2% 0,8% 1,5% In very poor degree 4,9% 4% 8,9% 7,6% Table 8 - Involvement in Work Involvement in work Do you enjoy telling others about your workplace? Do you feel, that the problems of the workplace are also yours? Do you think that your workplace has a big personal meaning to you? In Very high degree 10,2% 7,8% 12.3% 7,3% I high degree Partly In poor degree 25,7% 28,2% 26,6% 28,1% 41,2% 44% 36,1% 39,3% 17,9% 16% 16,2% 17,8% 15,7% 13,1% 35,4% 38,4% 31,2% 10,7% 33,1% 11,3% 7,2% 4,2% Table 9 - Predictability Predictability Do you receive information about important decisions, changes, future plans etc. in decent time? Do you receive all the information necessary to perform work well? In Very high degree 14,3% 10,2% I high degree Partly In poor degree 25,4% 25,4% 35,6% 16,4% 41,1% 16,9% In very poor degree 8,3% 6,5% 11,9% 9,1% 38,2% 39,5% 39,2% 8,5% 41,4% 8% 2,2% 2% Table 10 - Role Clarity Role clarity In Very high I high degree Partly In poor degree In very poor 49 of 53 Are there clear goals for your work? Do you clearly know, what you areas of responsibility are? Do you know exactly what there is expected of you at work? degree 21,3% 15,2% 37,6% 35,2% 54,3% 47.6% 49,2% 48,6% 21,5% 29,7% 11,1% 13,4% 28,6% 21,8% 51,1% 57,4% 18,1% 1,7% 18,3% 2,3% 2,4% 6,3% 1,7% 2,2% degree 0,5% 1,3% 0,3% 0,7% 0,5% 0,4% Table 11 - Role Conflict Role conflict In Very high degree Are there put contradicting 2,7% 2,6% demands to you in work? Do you perform something in 3,4% your work that is accepted by 3,5% some, but not by others? Do you sometimes, have to 3,4% 3,6% perform something, in another way than you are supposed to? Do you sometimes have to 3,4% 2,8% perform stuff in your work that seems unnecessary to you? I high degree Partly In poor degree 6% 8,9% 15,3% 14,4% 26,9% 33,1% 36,5% 41,8% 38,5% 38,8% 27,1% 26,7% In very poor degree 25,9% 16,6% 17,7% 13,6% 10,2% 16,9% 41,7% 32,5% 47,8% 25% 12,3% 6,7% 9,4% 13,5% 36,6% 34,6% 47,1% 30% 16% 6,6% In Very high degree 10,1% 7,2% I high degree Partly 32,6% 32,8% 37,5% 13,3% 39,5% 16,6% In very poor degree 6,5% 3,9% 13% 12% 6,5% 5,8% 7,3% 6,7% 26,3% 36,4% 29,6% 30,9% 26,9% 27,2% 34,1% 34,4% 43,6% 34,4% 40,9% 40,7% 6,2% 4,4% 6,8% 4,4% 8,9% 8,3% Table 12 - Management Quality Management quality – how good is the close management: Making sure that the individual employee, has great growth opportunities? At prioritizing the well being highly? At planning work? At solving conflicts? In poor degree 10,4% 12,8% 13,5% 12,8% 16% 17,2% Table 13 - Social Support in Work Social support in work Always Often Sometimes Rare How often do you receive help and support from 18,4% 35,5% 30,3% 10,5% 32,6% 37,5% Never/Very rare 11,4% 4,4% 12,1% 7,3% 50 of 53 coworkers? How often are your coworkers willing to listen to your problems with work? How often do you receive help and support from close management? 38% 41,9% 14,4% 25,2% 39,5% 23,3% 4,3% 5,4% 18,6% 27,2% 29% 21,5% 28,2% 29,4% 17% 8,2% 16,6% 4,4% 41,2% 32,3% 14,8% 45,2% 30,3% 16,5% 8,4% 6,2% Feedback Always Often How often do you talk with coworkers, about how well you perform at work? How often do you talk with your superior about how well you perform at work? 3,2% 2,6% 18,4% 31,1% 19,2% 36,8% Never/Very rare 30,1% 17,2% 25,4% 16% 2,9% 5,3% 15,4% 31,7% 21,4% 34,7 30,5% 27% How often is your close manager, willing to listen to your problems with work? 1.4% 6,5% 3,3% 1,8% Table 14 - Feedback Sometimes Rare 19,5% 11,5% Table 15 - Social Community Social community Always Often Is there a good atmosphere between you and your coworkers? Is there a good cooperation between colleagues at your work? Do you feel like part of the community at your work? 51,4% 42,1% 5,4% 41,2% 46,3% 9,8% Never/Very rare 0,7% 0,5% 1,1% 1,5% 35,5% 46,4% 14,1% 28,8% 45,7% 19,8% 2,6% 1,5% 3,7% 2,7% 52,9% 46% 3,2% 2,8% 4,3% 3,2% 31,8% 33,9 Sometimes Rare 9,3% 12,6% Table 16 - Insecurity at Work Insecurity at work – are you worried about: Becoming unemployed? Yes 21,5% 24,8% That because of new technology, you become replaced? 5,6% 15% Facing difficulties finding a new job in case of unemployment? 27,4% 43,7% Getting transferred against your will? 15.5% 16.8% No 78.5% 75.2% 94,4% 85% 72.6% 56,3% 84,5% 83.2% Table 17 - Job Satisfaction 51 of 53 Job satisfaction – how satisfied are you with: Your future prospects? The physical-working environment? The way, that your abilities are used? Your job, everything considered? Very satisfied 16,9% 15.5% 17,3% 13% 21,1% 16,5% 29,4% 22,5% Satisfied Unsatisfied Very unsatisfied 65,3% 14,2% 3,6% 59,9% 13,5% 11% 61,8% 16,6% 4,3% 63,3% 16,8% 6,9% 67,2% 9,2% 2,5% 66,3% 12,6% 4,6% 63,5% 5,8% 1,2% 65,9% 9,1% 2,8% Table 18 - General Self-Evaluated Health General self evaluated health Excellent Very good 19% 41,7% 14,8% 42,3% How well do you think your health is? Good Less Good 34,1% 4,6% 35,8% 6,4% Bad 0,6% 0,8% Table 19 - Somatic Stress Symptoms Somatic stress symptoms – in the last four weeks, how often have you: Had stomach problems and/or pain? Been dizzy? Had tensions in different muscles? Always Often Sometimes Rare Never/Very rare 0,5% 0,5% 0,2% 0,2% 3,6% 4,9% 15,5% 6,2% 9,4% 3,5% 32,5% 16,4% 53% 68,8% 70,5% 77,3% 24,2% 32,6% 6,8% 2,4% 2,9% 1,7% 15,7% 11,1% 24,2% 22,1% 17% 17,3% 24% 35,1% Table 20 - Cognitive Stress Symptoms Cognitive stress symptoms – in the last four weeks, how often have you: Had concentration difficulties? Had problems making decisions? Had difficulties remembering? Had difficulties thinking clearly Always Often Sometimes Rare Never/Very rare 0,2% 0,4% 0,3% 0,4% 0,8% 0,9% 0,2% 0,4% 44,1% 35,4% 49,2% 52,7% 42,9% 41,5% 53,1% 35,4% 4,3% 3,7% 2,2% 1,4% 2,9% 4,3% 2,9% 3,7% 17,2% 12,6% 16% 6,6% 20,3% 11,9% 11,8% 12,6% 34,2% 47,9% 32,2% 38,9% 31,4% 41,5% 32% 47,9% 52 of 53 The Development in All Dimensions Figure 26 53 of 53