This week’s reading covered regression and inferences about differences. Regression is a statistical measure that attempts to determine the strength of the relationship between one dependent variable and a series of other changing variables. This information helps determine what factors affect certain outcomes and which do not. This article was really interesting as it explored a very realistic question of whether positive employee attitudes and behaviors influence business outcomes or whether positive business outcomes influence positive employee attitudes and behaviors.
At its core concept, regression takes a group of random variables, thought to be predicting an outcome, and tries to find a mathematical relationship between them. This relationship is typically linear and takes into account all the individual data points. The hypothesis in this study by Daniel Koys was that employee satisfaction, organizational citizenship behavior, and employee turnover influence profitability and customer satisfaction. Data was gathered from a restaurant chain using employee surveys, manager surveys, customer surveys, and organizational records.
Regression analyses showed that employee attitudes and behaviors at a given ‘Time 1’ were related to organizational effectiveness at given ‘Time 2’ however additional regression analyses show no significant relationship between organizational effectiveness at Time 1 and the employee attitudes and behaviors at Time 2.
Overall it was determined that employee behaviors have a more direct impact on organizational effectiveness than do employee attitudes, especially when the concept of organizational effectiveness includes profitability as well as customer attitudes towards the restuarant. Further research was conducted in a restaurant chain to determine the relationship between employee satisfaction on organizational citizenship.
Employee satisfaction was measured using a survey of hourly employees. Organizational citizenship behavior was measured via a survey of the employees’ managers. Results from the study showed in Year 1, 774 hourly employees (average of 28 per unit) and 64 managers (average of 2 per unit) responded to the surveys. In Year 2, 693 hourly employees (average of 25) and 79 managers (average of 3) responded. Customer satisfaction was measured by a survey conducted in 24 units. Surveys were distributed in the restaurants at predetermined times by the restaurant host/hostess and they collected 5,565 customer responses for Year 1 (an average of 232 per unit) and 4,338 responses for Year 2 (an average of 182 per unit). Based on results of the study it was determined that data supported the idea that human resource factors such as positive employee attitudes influence organizational effectiveness. The results showed that Year l’s outcomes account for 14% to 31% of the variance in Year 2’s organizational effectiveness.
The results showed some support for the hypothesis that Year l’s unit-level employee satisfaction, organizational citizenship behavior, and turnover predict Year 2’s unit-level profitability but there was a stronger support for the hypothesis that Year l’s unit-level employee satisfaction, organizational citizenship behavior, and turnover predict Year 2’s unit-level customer satisfaction. In the reading it was noted that employee satisfaction had the only significant beta weight. Although this implies that employee satisfaction influences customer satisfaction, customer satisfaction may still affect employee satisfaction. There may be a reciprocal relationship between employee satisfaction and customer satisfaction but like all statistical results one can only conclude that data judging the relationship between employee satisfaction and organizational effectiveness is still an open question needing continued research.