A Senior Executive in Your Organization Read an Older Organizational

question 53

Essay

A senior executive in your organization read an older organizational behaviour textbook, which concluded that there is little relationship between job satisfaction and job performance. The senior executive now believes that it is a waste of time and money to have 'happy workers'. Instead, the executive is recommending finding ways to improve productivity without any consideration for employee well-being (beyond legal requirements). The company president is concerned that the executive's information may convince other members of the management committee to take a similar harsh view. Provide three different arguments why companies should try to maintain a reasonable level of job satisfaction among employees in this organization.

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Definitions:

Standard Deviation

A metric that reflects the degree of spread or divergence in a group of values, revealing how far the values stray from the central value.

Portfolio

A portfolio consists of various financial assets such as stocks, bonds, commodities, cash, and equivalents like closed-end funds and ETFs (Exchange Traded Funds).

Expected Returns

The anticipated profit or loss from an investment, taking into account the probability of different outcomes.

Stocks' Returns

Stocks' returns refer to the gain or loss made on an investment in stock, usually expressed as a percentage of the investment's initial value.