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Stress management organizational justice and social responsibility

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Stress management organizational justice and social responsibility

  3. 3. WHAT IS STRESS?  A dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important.  Although stress is typically discussed in a negative context ,but it also has a positive value.  It is an opportunity when it offers potential gain. For e.g. An athlete or a stage performer use stress positively to rise to the occasion and perform at their maximum.
  6. 6.  The fight-or-flight response was first described in the 1920s by American physiologist Walter Cannon.  The fight-or-flight response, refers to a physiological reaction that occurs in the presence of something that is terrifying, either mentally or physically. The response is triggered by the release of hormones that prepare your body to either stay and deal with a threat or to run away to safety.  While the fight-or-flight response happens automatically, that does not mean that it is always accurate. Sometimes we respond in this way even when there is no real threat. For ex:- Phobias .
  8. 8. • Environmental Factors – Economic uncertainties of the business cycle. – Political uncertainties of political systems. – Technological uncertainties of technical innovations. • Organizational Factors – Task demands-relayed to a person's job. Design of the job, working conditions, physical work layout. – Role demands-pressures placed on a person as a function of the particular role he/she plays in the organization. – Interpersonal demands-pressures created by other employees. Lack of social support, poor interpersonal relationships. • Personal Factors – Family and personal relationships. – Economic problems from exceeding earning capacity. – Personality problems arising from basic disposition.
  9. 9. INDIVIDUAL DIFFERENCES  Perception: layoffs may cause one person to fear losing his job, while another sees an opportunity to get a large severance allowance ands starts her own business; So stress potential doesn’t lie in objective conditions; rather it lies in an employee's interpretation of those conditions. o Social support: collegial relationships with superiors or co-workers can buffer the impact of stress. o Personality: deals with workaholics.
  13. 13. INDIVIDUAL APPROACH  TIME MANGEMENT: an understanding and utilization of basic time management principles can help individuals better cope with job demands.  PHYSICAL EXERCISE: on competitive exercises like aerobics, jogging, swimming, riding bicycle have long been recommended by physicians as a way to deal with excessive stress levels.  RELAXATION TRAINING: individuals can relax themselves using techniques like meditation, hypnosis, and biofeedback. the objective is to reach a state of deep relaxation where once feel deeply relaxed somewhat detached from immediate environment.  SOCIAL SUPPORT: to talk to family, friends, co- workers about oneself in order to de-stress.
  14. 14. ORGANIZATIONAL APPROACH  SELECTION AND PLACEMENT: individuals with little exp. or external locus of control tend to be more stress-prone. selection and placement decisions should take theses facts into consideration.  GOAL SETTING: the use of goals can reduce stress as well as provide motivation. Also goals feedback can remove uncertainties as to actual job performance.  PARTICIPATIVE DECISSION MAKING: by giving the employees a voice that directly affects their decisions , management can improve employee control and can remove this role stress.
  15. 15.  JOB REDESIGN: redesigning jobs to give employees more responsibility, more autonomy, more meaningful work and increased feedback can help to reduce stress level.  ORGANIZATIONAL COMMUNICATION: management can use effective methods of communication to shape an employee's perception.  WELLNESS PROGRAM: theses programs focus on the employees physical as well as mental conditions. Organizations can help by organizing workshops in order to help them quit smoking, lose weight, eat better and have a healthy life.
  16. 16. CASE STUDY SOURCE : HTTPS://WWW.RESEARCHGATE.NET/PUBLICATION In this case, the Calibra Net Informatics Ltd has been considered; this company was established in 2004. Due to the innovative technological solutions, the company has been doing very well and despite of the economic crisis in 2009, its profit was continuing to increase. When the company has to enhance its performance, increase its productivity and goodwill, then it is obvious that the employees have to work hard and be motivated towards their work. The technical managing director in this company worked so hard that symptoms of stress and fatigue could be easily observed on her. Not only the technical managing director, but the other employees of the company also worked so hard that they started developing health problems and began taking a sick leave from work. Positive factors were that there was a strong correlation between the employees and absence of disputes and conflicting situations (Kirchner & Wolfling, n.d.).
  17. 17. The fact became clear that this company did not manage stress management, there was lot of pressure of work upon the technical managing director and it was not divided amongst all the other employees, the tasks were overlapping amongst the heads of departments; hence, stress and tension mainly arose due to indistinguishable capacity of tasks and duties. In order to effectively deal with these kinds of stressful situations, a workshop was conducted that emphasized and clearly disclosed the problems. Through a video analysis, the stress factors became visible and known to all the employees and employers and it is understood that all the problems and difficulties were arising from the inappropriate organizational structure. The company planned to organize another workshop to analyze the problems and find their solutions, stress management trainings were organized and then after half a year outcomes were measured; the profitability began to increase again, number of sick leave days dropped back to half, work satisfaction questionnaire depicted good results, and in this way stress management proved to be flourishing and sustainable.
  19. 19. o Organizational justice refers to employees’ perception from justice and fair behaviors. o It studies that how to behave with employees so that they feel they have been treated fairly. o Organizational justice mainly concentrates on the workplace’s fairness which influences numerous organizational and individual work- related factors like turnover intentions, absenteeism, job satisfaction, organizational commitment, role breadth, job performance, leader-member exchange, trust, leadership and job satisfaction. ORGANIZATIONAL JUSTICE
  20. 20. EQUITY THEORY  Also known as Adams’ Theory of Justice, it was published in 1965 by John Stacey Adams.  Adams' Equity Theory calls for a fair balance to be struck between an employee's inputs (hard work, skill level, acceptance, enthusiasm, and so on) and an employee's outputs (salary, benefits, intangibles such as recognition, and so on).  Adams' Equity Theory states that positive outcomes and high levels of motivation can be expected only when employees perceive their treatment to be fair.
  21. 21. Compare • Effort • Experience • Education • Salary • Increment • Recognition = Equity results happiness > Inequity as under rewarded (Goodman P.S., 1974, RonanS,1986) Individuals compare their job inputs & outcomes with those of others andthen respond to eliminate any inequities Sad < Inequity as Over rewarded Guilty Happy
  22. 22.  Employees perceive what they get from a job situation (salary levels,raises,recognition)in relationship to what they put into it(effort,experience,education,competence)and then they compare their outcome-input ratio with that of relevant others.
  23. 23.  CASE1: When we see the ratio as unequal and we feel unrewarded, we experience equity tension that creates anger.  CASE2: If we perceive our ratio to be equal to that of the relevant others with whom we compare ourselves, a state of equity exists; we perceive that our situation is fair and justice prevails.  CASE3:when we see ourselves over rewarded, tension creates guilt.  **Adams proposed that this negative state of tension provides the motivation to do something to correct it.
  25. 25. MODERATING VARIABLES  Moderating variables are : 1. Gender: Women are typically paid less than men in comparable jobs and have lower pay expectations than men for the same work. 2. Length of tenure: Employees with short tenure in their current organizations tend to have little information about others inside the organization, so they rely on their personal experiences. Employees with long tenure rely more heavily on co-workers for comparison. 3. Level in the organization, amount of education or professionalism: Upper-level employees, those in the professional ranks, and those with higher amounts of education tend to have better information about people in other organizations and will make more other–outside comparisons.
  26. 26. CHOICES IN CASE OF INEQUITY  Based on equity theory, employees who perceive inequity will make one of six choices: 1. Change inputs (exert less effort if underpaid or more if overpaid). 2. Change outcomes (individuals paid on a piece-rate basis can increase their pay by producing a higher quantity of units of lower quality). 3. Distort perceptions of self (“I used to think I worked at a moderate pace, but now I realize I work a lot harder than everyone else.”). 4. Distort perceptions of others (“Mike’s job isn’t as desirable as I thought.”). 5. Choose a different referent (“I may not make as much as my brother-in-law, but I’m doing a lot better than my Dad did when he was my age.”). 6. Leave the field (quit the job).
  28. 28. DISTRIBUTIVE JUSTICE o Distributive justice is the workers’ perception in the fairness of outcomes such as monetary rewards obtained by the workers from the organization. o Distributive justice is related specifically to the results of decisions on distribution. o It includes: Equity: Rewarding employees based on their contributions. Need: providing a benefit based on one’s personal requirements Equality: providing similar Employees roughly the Same compensation.
  29. 29. PROCEDURAL JUSTICE o Procedural Justice is concerned with the fairness of the decision process leading to a particular outcome. o Procedural justice is the perception of equity regarding rules and regulations applied in the process of rewarding or punishing. o For example, Greenberg(1994) found that smokers more strongly accepted a smoking ban when they felt they had been given thorough information about the change of policy, in a socially sensitive manner. o Two key elements of procedural justice are- 1. Process control (opportunity to present your point of view about desired outcomes to decision makers) 2. Explanation (clear reasons management gives for the outcome)
  30. 30. VOICE PRINCIPLE  This principle states that people’s perceptions of procedural justice are likely to be enhanced if they are given the opportunity to present information and voice their concerns before decisions are taken.  Simple activities such as managers lunching with lower level colleagues or operating open door policies, can enhance the feeling among employees that they are being listened to.  Other more direct initiatives promoting the voice principle might include suggestions schemes , empowerment programs, appeal processes and participative management.
  31. 31. DETERMINANTS OF PROCEDURAL JUSTICE  Consistency: The same allocations are made across persons, situations and time. This would mean, for example, that standard criteria are in place for contract terminations and employees are never dismissed ‘on a whim’.  Neutrality: Decisions are based on facts, not on vested interests or personal feelings of the decision maker. Multiple information sources will help to create a comprehensive and objective view of a situation.  Accuracy: The information used to formulate and justify the decision is up to date and correct. Hearsay must be validated and HR policies read up on before either is quoted in a formal situation.
  32. 32. DETERMINANTS OF PROCEDURAL JUSTICE(CONT.)  Correctability: Provisions exist for challenging and/or reversing ill‐advised decisions, such as grievance or appeal procedures.  Representativeness: All those whom the outcome will affect have their concerns taken into account. This would mean, for example, consulting both smokers and non‐smokers about the implementation of a smoking ban, and considering viable compromises for those whom it will inconvenience.  Morality and ethicality: Age, gender, nationality and other extraneous factors have no bearing on the decision that is made.
  33. 33. INTERACTIONAL JUSTICE  Interactional justice describes an individual's perception of the degree to which she is treated with dignity, concern and respect.  When people are treated in an unjust manner(at least in their own eyes),they retaliate (for e.g. bad mouthing a superior)  Interactional justice is considered as key aspect in workplace settings because of its relationship with unfair and fair treatment. “The interpersonal treatment employees receive from decision makers and the adequacy with which the formal decision making procedures are explained”
  34. 34. KEY ASPECTS OF INTERACTIONAL JUSTICE  Truthfulness: Information that is given must be realistic and accurate, and presented in an open and forthright manner.  Respect: Employees should be treated with dignity, with no recourse to insults or discourteous behavior.  Propriety: Questions and statements should never be ‘improper’ or involve prejudicial elements such as racism or sexism.  Justification: When a perceived injustice has occurred, giving a ‘social account’ such as an explanation or apology can reduce or eliminate the sense of anger generated.
  35. 35. TEMPORAL JUSTICE o Temporal justice in an organization is concerned with “the fair distribution of time”. o Organizations must distribute work time evenly across employees irrespective of them being single or married, part time students or working full time IT INCLUDES: Marital Time: Time spent with spouse and children. Personal Time: Time spent with friends, gym, hobbies, sleep and effect of working time on personal time. Office Time/Late Sittings: Extra time spent for work in office after office hours.
  36. 36. RESPONSES TO INJUSTICE  Turnley and Feldman (1999) summaries four possible responses to dissatisfaction that might apply to employees who feel they have been unjustly treated:  exit behaviors (negative/active) e.g. leave the organization  withdrawal behaviors (negative/passive) e.g. reduce one’s efforts  voice behaviors (positive/active) e.g. file a grievance  loyalty behaviors (positive/passive) e.g. ignore or try to rationalize the injustice.
  37. 37. HANDLING RESPONSES TO INJUSTICE  Organizations should be prepared to take both an anticipatory and retrospective approach to injustice, as follows:  Revise systems and procedures to eliminate the potential for gross injustices altogether. Many organizations will already have a basic set of HR policies in place that are intended to promote fairness: for example, the standardized salary scales and development programs mentioned previously.  To have an open information share network about how allocations decisions are made, follow consistent and unbiased procedures and engage in similar practices to increase the perception of procedural justice.  When addressing perceived injustice managers need to focus their actions on the source of the problem.
  39. 39. SOCIAL RESPONSIBILITY  According to Keith Davis, the term “social responsibility” refers to two types of business obligations:  The socio-economic obligation  The socio-human obligation  Social responsibility is the idea that the business should balance profit-making activities with activities that benefits society.
  40. 40. DIFFERENT VIEWS ON SOCIAL RESPONSIBILITY  Communist view: Communists hold that free industrial civilisation is not good because its values are of the wrong order. Business has been concerned with only material gain. Economic expediency is taken to be the sole criterion of decision. Therefore, business is devil.  Capitalist view: This view holds that economic expediency alone is just a standard for business decisions and that business has an unbridled and an uncontrolled right to make money free from all sorts or social responsibilities. In short, managers should focus on what they know best: how to make profit.
  41. 41.  Pragmatic view: This view acknowledges the importance of profits but simultaneously stresses for social responsibility. It holds that a company cannot make a social contribution if it is not profitable. Profits are the test of the efficient functioning of a business enterprise.  Trusteeship view: This view advocates the retention for personal use of so much as is necessary for an honourable livelihood, no better than that enjoyed by million others, and the utilisation of the rest for the welfare of the community. Its slogan is enjoy thy wealth by renouncing it.
  43. 43.  TOWARDS THE CONSUMER AND THE COMMUNITY  Production of cheap and better quality goods and services by developing new skills, innovations and techniques.  Deciding priorities of production in the country’s interest and conserving natural resources.  Honouring contracts and following honest trade practices.  Preventing the creation of monopolies.  Providing for after sale services.  Supporting education, slum clearance, etc.  Towards shareholders and other businesses  Promoting good governance through internal accountability and transparency.  Fairness in relations with competitors.
  44. 44.  Towards employees and workers  A fair wage to the workers.  Just selection, training and promotion without discrimination.  Good human relations.  Freedom, self-respect and self-actualisation.  Social security measures and good quality of work life.  Providing opportunities for creativity and innovation.  Towards the state  Shunning active participation in and direct identification with any political party.  Observing all the laws of land which may have the following objectives:  To enforce distributive justice  To allocate limited resources according to social priorities  To provide safeguard against errant business practices  To provide direction to the economic and business life of the community.
  45. 45. SOCIAL AUDIT  A social audit is a systematic study and evaluation of the organisation’s social performance as distinguished from its economic performance. o The term “social performance” refers to any organisational activity that effects the general welfare of the society
  46. 46.  Benefits:  It supplies data for comparison.  It develops a sense of social awareness among employees.  It provides data about the cost of social programmes undertaken.  It provides information for effective response to external groups which make demands on the organisation.  Limitations:  They are difficult to measure.  Their classification under good or bad is not universally accepted.  Most of them occur outside the organisation, making it difficult for the organisation to secure data from these outside sources.
  47. 47. CASE STUDY SOURCE : DEARCADBURY.COM & SCTIBD.COM  In India, Cadbury began its operations in 1948 by importing chocolates. After 60 years of existence, it today has five company-owned manufacturing facilities at Thane, Pune and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). CSR activities at Cadbury India Commitment to the Environment-  Migratory birds stop over at their Bangalore factory  Pioneering cocoa cultivation in India  Bangalore factory: the sun shines at night« Acknowledged as 'Preserver of Environment’  Use of solar panels to light the streets outside the factory during the night.
  48. 48.  Growing Community Value-  Non-formal school set up by Cadbury for children of migrant workers in Baddi(HP) in association with an NGO called SAHYOG.  Cadbury is in a tie-up with Bharti-Walmartto support education needs of underprivileged children.  Sarvam Program- Working in partnership with a local charity on a five- year project, Cadbury is contributing to the redevelopment of two villages in the costal region of Pondicherry.  Cadbury India has partnered with Vatsalya Foundation, an NGO working with underprivileged street children in Mumbai.  Cadbury India supports the building of a Neo-natal ward- Supported to build this ward at the Thane Municipal Hospital.  Gurikha Project- Gurikhais a village adopted by Cadbury India.