Using employee satisfaction measurement to improve people management: An adaptation of Kano's quality types

Abstract

A model and an associated measurement instrument of employees' perceptions of job dimensions, satisfaction, commitment and loyalty has been developed and applied in several Danish organizations. The model is a structural equation model with unobservable latent variables that link employee satisfaction to its determinants and, in turn, to its consequences, namely employee commitment and loyalty. The determinants of employee satisfaction, commitment and loyalty are top management, company values, daily leadership, working and appointment conditions, co-operation and people relations, and development of competencies. We tested the model among more than 300 employees, and achieved a very good explanation of employee satisfaction (R²= 0.73). We then calculated the performance indices and importance scores of job dimensions. Priority maps point to the areas that show the greatest potential for improving employees' loyalty. That is, the areas that the organization should pay most attention to in the future. The calculation of these maps is based on estimated importance scores. Importance of job dimensions is also self-rated. By setting up importance grids for daily leadership and competencies, where estimated importance defines the horizontal axis and the stated (explicit) importance defines the vertical axis, we were able to identify Kano et al.'s (1996, The Best on Quality (Milwaukee, WI, ASQ Quality Press) three quality types: expected dimensions, proportional dimensions and value added dimensions. These importance grids give an indication of how each area is perceived and of the action that is required. Furthermore, the results from the priority maps were compared with the importance grids. These comparisons indicate that the areas showing the greatest potential for improving employees' loyalty are either value added areas or high proportional elements. Areas the organization should pay less attention to in the future were all categorized as expected job elements or low proportional elements. Finally, opportunity areas were either characterized as low proportional or expected quality elements. Finally, the managerial implications will be discussed briefly.