MGT 501 CASE 2
Prof. James Herndon
NOV 15 2013
Common sense tells us all businesses want happy and contributing employees.They also would like to have larger profits. Happy employees quantifiably translated into larger profits. A new book by Dr. Noelle Nelson, “Make More Money by Making Your Employees Happy,” explains how they do. “When employees feel that the company takes their interest to heart, then the employees will take company interests to heart,” says Dr. Nelson, a clinical psychologist, best selling author and business trial consultant.
Dr. Nelson cites a study from the Jackson Organization, a survey research consultancy, since acquired by Healthstream, Inc., which shows, “companies that effectively appreciate employee value, enjoy a return on equity & assets more than triple that experienced by firms that don’t. When looking at Fortune’s ’100 Best Companies to Work For’ stock prices rose an average of 14% per year from 1998-2005, compared to 6% for the overall market.”
Many business owners might think that employees need more money to be happy. With 66% of employees expecting raises in 2012, according to a survey by 24 Seven, a recruitment and talent management agency, that would make sense—although perhaps not necessary. What business owners need to do, says Dr. Nelson, “is keep their promises and show compassion for their employees. So if you promised your employees a pay raise, give it to them. If you promised resources to help them be more efficient at their job, give it to them. Find what’s important to your employees and give it to them”.
In our daily personal and professional lives there is a constant evolution of transformation, the same is true in organizations. Technology for instance contributes significantly to an organizations ever increasing need for transformation and organizational restructuring. It is my belief that Google creates jobs...