EMPLOYEE OPINION SURVEY 2000

NARRATIVE REPORT
XYZ COMPANY

(Sample report with representative sections, graphics, and text)

Table of Contents

TABLE OF CONTENTS.................................................................................................................................................................1 FIGURES ...........................................................................................................................................................................................3 EXECUTIVE SUMMARY................................................................................................................................................................4 LOMAS COMMITMENT.............................................................................................................................................x INTRODUCTION ...........................................................................................................................................................x SURVEY A DMINISTRATION ......................................................................................................................................................x INTERPRETATION OF RESULTS ..............................................................................................................................................5 FAVORABLE/UNFAVORABLE RESPONSES................................................................................................................................ 5 COMPARISONS WITH ACE SURVEY NORMATIVE DATA ..................................................................................................... 5 SURVEY VARIABLES AND CORRELATIONS............................................................................................................................. 5 THE ASSESSING CULTURES FOR EXCELLENCE SURVEY...............................................................................................7 SURVEY CONTENT ..................................................................................................................................................................... 7 RESULTS BY TOPIC AREA ........................................................................................................................................x OVERVIEW .....................................................................................................................................................................x I. EMPLOYEE MORALE AND VIEW OF THE COMPANY................................ .........................................................x II. QUALITY OF WORK LIFE.................................................................................. .........................................................x III. LEADERSHIP ....................................................................................................... .........................................................x IV. EMPLOYEE INVOLVEMENT.............................................................................................................................................8 V. QUALITY SERVICE.............................................................................................. .........................................................x SPECIAL TOPIC: DEPARTMENTAL TRAINING............................................................................................................... 11 VI. DEMOGRAPHICS: ANALYSES OF BETWEEN-GROUPS DIFFERENCES ............................................................. 13 VII. CONTENT ANALYSIS OF RESPONSES TO OPEN-ENDED QUESTIONS............................................................. 15 QUESTION 1A............................................................................................................................................................................. 16 QUESTION 1B ............................................................................................................... .........................................................x QUESTION 2A............................................................................................................... .........................................................x QUESTION 2B ............................................................................................................... .........................................................x FOLLOW-UP RECOMMENDATIONS .......................................................................................................................................x TIPS FOR SUCCESSFUL FOLLOW -UP ......................................................................... .........................................................x SPECIFIC RECOMMENDATIONS TO ADDRESS XYZ COMPANYS PROBLEM AREAS........................................18 APPENDIX......................................................................................................................................................................65

LOMA 2000 Assessing Cultures for Excellence Survey

Figures
Assessing Cultures for Excellence Model (Figure 1) .................................................... 9 XYZ Company Results Employee Morale .................................................................15 Comparison of XYZ Company Results to Norm Data Employee Morale ..............16 Relationships Between Employee Morale & Quality of Work Life .............................18 XYZ Company Results Quality of Work Life ..............................................................19 Comparison of XYZ Company Results to Norm Data Quality of Work Life ...........20 Relationships Between Employee Morale & Leadership...........................................21 XYZ Company Results Leadership............................................................................22 Comparison of XYZ Company Results to Norm Data Leadership.........................22 Relationships Between Employee Morale & Employee Involvement ........................24 XYZ Company Results Employee Involvement .........................................................25 Comparison of XYZ Company Results to Norm Data EE Involvement ..................25 Relationships Between Employee Morale & Quality Service.....................................27 XYZ Company Results Quality Service......................................................................28 Comparison of XYZ Company Results to Norm Data Quality Service...................28 Special Topic: Departmental Training: Mean By Work Unit.......................................31 Special Topic: Departmental Training: Mean By Tenure............................................31 Special Topic: Departmental Training: Mean By Job Level.......................................32 Open-Ended Question Analysis: Question 1a. ............................................................40 Open-Ended Question Analysis: Question 1b. ............................................................43 Open-Ended Question Analysis: Question 2a. ............................................................47 Open-Ended Question Analysis: Question 2b. ............................................................50

LOMA 2000 Assessing Cultures for Excellence Survey

Executive Summary
This report describes the results of the March, 2000, Assessing Cultures for Excellence (ACE) Survey for XYZ Company. The survey was completed by 380 (96%) of the approximately 394 employees to whom it was distributed. Our analyses of the results focused in part on comparisons between XYZ Company and LOMAs normative database, which consists of 1997-1999 survey data from over 8,000 employees in over 30 insurance companies. We also analyzed differences between tenure, job level, gender, age, and work unit groupings, and interpreted the largest correlations between the surveys three morale measures and 23 climate measures. Respondents rated these 26 variables (comprised of 115 survey items) under five major dimensions (Employee Morale and View of the Company, Quality of Work Life, Leadership, Employee Involvement, and Quality Service). Additionally, we analyzed a 27th variable, attitude toward departmental training, which was formed from five customized survey items. Finally, we analyzed the responses to the surveys two, two-part, open-ended questions, In what way has XYZ Company most met your expectations for your work life, job, or career? In what ways has the company not met your expectations? and We know job satisfaction can vary according to job characteristics like variety in the work, autonomy, and the importance of the job. What characteristics of your job do you like best? What characteristics of your job do you like least? These questions generated 1,676 comments across an average of nine content categories per question from an average of 266 employees per question (326 employees answered at least one of the four sub-questions). XYZ Company rates significantly above the survey norm in five of the 26 areas measured: company image and outlook, top management, rewards-performance link, top managements commitment to quality, and customer feedback. More so than in the typical insurance company, XYZ Companys employees generally have positive attitudes about the companys image and top management, relate their rewards to company performance, and seek customer feedback.

Etc.

LOMA 2000 Assessing Cultures for Excellence Survey

Interpretation of Results
Favorable/Unfavorable Responses The following response scale is used in the ACE Survey. This scale has five response alternatives on an agreement scale: 1) 2) 3) 4) 5) Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

The majority of the statements are positively worded so that Agree and Strongly Agree are favorable responses, and Strongly Disagree and Disagree are unfavorable responses. For ACE items 6 and 29, the statements are negatively worded. In these two cases, disagreement is considered favorable. Likewise, custom item 120 was also negatively worded (Delays in receiving departmental training have somewhat hurt my work motivation) such that agreement with the statement is unfavorable. The tables and graphs in the Results sections of the reports display the percentages of favorable and unfavorable responses. Please refer to the Understanding Your Bar Charts section in the beginning of each report booklet for an explanation of the graphs. Comparisons with ACE Survey Normative Data LOMA's ACE survey normative database has accumulated since 1997. The normative data represent the average responses of over 8,000 employees in over 30 U.S. and Canadian insurance companies. Refer to the Appendix for a list of the companies in LOMA's normative database. Survey Variables and Correlations The surveys 26 variables are comprised of the 115 individual items that XYZ Companys employees rated in their survey responses. The Results section of this report contains four bar charts of correlations between the three variables comprising the overall Employee Morale and View of the Company dimension and the Quality of Work Life, Leadership, Employee Involvement, and Quality Service dimensions variables, respectively. By saying any two variables are positively correlated, we simply mean they are directly associated (i.e., the two measures tend to move up and down together). Sometimes this reflects the fact that one variable directly causes or drives the other, but the two variables may also reciprocally influence each other, or even be correlated simply by chance. In any case, when two variables or measures are strongly correlated, knowledge of the value and behavior of one variable lends insight about the other variable.

LOMA 2000 Assessing Cultures for Excellence Survey

The correlation numbers displayed on the bottom axis in the bar charts are quantitative measures of the positive association between variables. These numbers can range from zero (no correlation at all) to one (perfect association). Thus, the bigger the number, the stronger the association between the two variables. There is no absolute standard of what represents a strong correlation, but certainly correlations of .50 and higher would be considered strong for practically any pair of variables in employee attitude surveys.

LOMA 2000 Assessing Cultures for Excellence Survey

The Assessing Cultures for Excellence Survey

Survey Content The ACE Survey for XYZ Company included 120 fixed-response items (five of these were customized to the companys departmental training issue) and items to categorize respondent tenure, job level, gender, age, and work unit. There were also two open-ended questions in the survey. As illustrated in the model below, the 115 ACE survey items fall into one of five general categories: Employee Involvement, Quality Service, Quality of Work Life, Leadership and Employee Morale and View of the Company. Figure 1 shows more specifically the topics measured by the survey. XYZ Companys results will be presented within the context of this framework. Figure 1
Employee Involvement
Authority Company Knowledge Individual Knowledge Information/Communication Recognition & Rewards Rewards-Company Performance Link

Employee Morale and View of the Company

Job Satisfaction Company Satisfaction Company Image & Outlook

Leadership
Top Management Supervision

Employee Morale & Turnover

COMPETITIVE
Quality of Work Life
Balance Workload Diversity Job Security Resources Satisfaction with Pay & Benefits
Cu st om er Sa tis fa ct io n

Quality Service
Top Management Commitment to Quality Customer Focus Customer Feedback Customer Satisfaction Continuous Improvement/ Innovation Continuous Improvement/ The Work Group Company Teamwork Work GroupTeamwork Quality Emphasis

LOMA 2000 Assessing Cultures for Excellence Survey

Fi na nc ial Pe rfo rm an ce

ADVANTAGE

Copyrighted:LOMA, 1999

IV. EMPLOYEE INVOLVEMENT This dimension reflects XYZ Company employees perceptions of how much they are involved in work-related decisions and developments. This implicates employee empowerment as well as how much employees can be expected to internalize and truly understand company goals. Arguably, a degree of employee involvement is also required if managers and supervisors are to become more transformational and less transactional as leaders. What stands out most in the bar chart below is the strong association between individual knowledge (an indirect measure of trainings effectiveness) and all aspects of Employee Morale. Note, too, company communications strong association with company satisfaction. This suggests that well trained employees who feel in the know about company events and work decisions are likely to also have higher morale at XYZ Company. Correlations, Averages, and Normative Comparisons
Relationships Between XYZ Company's Employee Morale and Employee Involvement

Rewards-Performance Link

Employee Attitude

Recognition & Rewards Information/Communication

Company Image & Outlook Company Satisfaction Job Satisfaction

Individual Knowledge

Company Knowledge

Authority 0.00 0.20 0.40 Correlation 0.60 0.80

LOMA 2000 Assessing Cultures for Excellence Survey

XYZ Company Results Employee Involvement

Rewards-Performance Link Employee Involvement Variables

Recognition & Rewards

Information/Communication

Individual Knowledge

Company Knowledge

Authority

2.75

3.25

3.5 Average Values

3.75

4.25

Comparison of XYZ Company Results to Normative Data Employee Involvement

Rewards-Performance Link Employee Involvement Variables

Recognition & Rewards

Information/Communication

Individual Knowledge

Company Knowledge

Authority

-0.40

-0.30

-0.20

-0.10

0.00

0.10

0.20

0.30

0.40

XYZ Company Below Norms XYZ Company Above Norms Difference greater than .11 or less than -.11 is significantly different from Norm Average

LOMA 2000 Assessing Cultures for Excellence Survey

As indicated in the figure above, XYZ Company has done an unusually good job of relating rewards to company performance. In fact, responses to the open-ended questions reveal that it is the linkage between rewards and individual performance, not company performance, that is unclear to many employees. In all other aspects of Employee Involvement, XYZ Companys results bespeak a fairly traditional, top down company that does not communicate to employees or involve employees in goal-setting as much as many other companies do. A review of the scores for the four items comprising the company knowledge measure suggests that many employees at XYZ Company know relatively little about operations outside their work unit and how other work units contribute to company performance. Some of this may be due to natural limitations in cross-divisional exposure many employees (especially junior ones) experience, but some of it could also be owing to weak communication between major work units and high turnover that lowers average employee experience with other work units over time.

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SPECIAL TOPIC: DEPARTMENTAL TRAINING XYZ Company modified LOMAs survey by including five fixed-response scaled items regarding departmental training. Fully 73 percent (about 269 employees) agreed with the item stating, The departmental and on-the-job training I receive is generally useful and effective. Favorable responses were notably lower for the items involving training deliverys timeliness, however. These results do not indicate how effective departmental training actually is (further training evaluation would be required to determine that), but they do show a general satisfaction with departmental training. Our analyses show these five items form a unidimensional, statistically reliable measure of what may best be described as the respondents attitude toward the quality of departmental training at XYZ Company. Of the surveys morale measures, this summary measure correlates most strongly with job satisfaction. Of the climate measures, the departmental training variable correlates most strongly with individual knowledge and direct supervision measures. The associations with job satisfaction and individual knowledge are not surprising, but the strong link to impressions about supervisors is interesting. This indicates what employees particularly want from their bosses: training and development. One would expect that, in departments where training is frequently delayed or mishandled, job satisfaction and satisfaction with the supervisor will be lower. Very few statistically significant between-groups differences in opinions about departmental training emerged. The strongest between-groups difference regarding departmental training occurred among work units. Specifically, both Administration division work units identified in the survey rated departmental training lower than other XYZ Company work units. This was especially so for the second Administration work unit. A marginally significant tenure effect was observed in that employees in the 1 to 5 years service range rate departmental training lower than both very new employees and more seasoned employees. All managerial job levels (supervisors through top managers) rated XYZ Companys departmental training somewhat higher than did the non-management employees.

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LOMA 2000 Assessing Cultures for Excellence Survey

18.0

17.5

17.0

16.5

Mean of Departmental Training

16.0

19

18

17

16

Mean of Departmental Training

15

<1 yr.

t' en sid i l re -P -Po ive g ut min ec am Ex gr ro ts ial lP n c m Al tme an Ad s in cy ve -F In rial gen e/ r a v tu g-A uti rw Ac tin xec de ke E Un us ar gM etin ss w B k ine e N h ar M B u s s s - as e -C e w in g N Bus ntin xec u -E i e w co g N Ac ntin dm p ou e/A or C Acc utiv s c n p or xe tio C n-E lica i y m pp lic Ad - A -Po ity in in u m m nn Ad Ad -A y in lic m Po Ad y lic Po

Work Unit (ACE Sec. E)

2 to <5 yrs.

5 to <10 yrs.

10 or more yrs.

Tenure (ACE Sec. A)

1 to <2 yrs.

12

VI. DEMOGRAPHICS: ANALYSES OF BETWEEN-GROUPS DIFFERENCES XYZ Companys ACE Employee Opinion Survey captured categorical data on five demographic variables: Length of Service Job Level Gender Age Work Unit

Whereas the previous sections dealt only with data averaged across the entire respondent sample, this section reports on significant differences in the survey variables average values among different demographic groups. A ranked list of average satisfaction scores for any variable across any demographic categories will always, by definition, yield a lowest scoring category and a highest scoring category. But even the lowest scoring category may not be significantly different, in statistical terms, from the highest scoring category if the range of average scores is tight. Thus, what XYZ Company needs to know is whether categories on the low end of any satisfaction score list are significantly lower than categories on the high end.

Length of Service The employee tenure categories and number of respondents per category are indicated in the following table: Tenure Category Less than 1 yr. 1 to less than 2 yrs. 2 to less than 5 yrs. 5 to less than 10 yrs. 10 or more yrs. Missing data Frequency 69 54 50 69 131 7

Analyses indicate significant between-group differences for five variables: Company Satisfaction The second tenure group (1-<2 yrs.) is least satisfied with the company, and is significantly less satisfied than both the most junior and most senior tenure groups. Authority The second tenure group (1-<2 yrs.) is least satisfied with authority (job autonomy), and significantly less satisfied than the most senior group. Continuous Improvement/Innovation The second tenure group (1-<2 yrs.) is least satisfied with the climate for innovation and process improvement, and is significantly less satisfied than both the most junior and most senior tenure groups.

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Communication This variables mean scores show a different pattern. The most junior group (<1 yr.) is significantly more impressed with company communications than all other groups, and the fourth tenure group is least impressed of all. Recognition & Rewards The fourth tenure group (5-<10 yrs.) senses the least recognition for personal effort, and significantly less than both the most junior two groups and the most senior group.

What can be reasonably concluded? Does a pattern emerge that signals something more than random differences? It appears that the second year of employment is a pivotal one for XYZ Company employees, many of whom experience low satisfaction or frustration with the company, their job autonomy, and the lack of work process improvement. Either this is a honeymoon effect (i.e., the most junior employees have unusually high morale while the employment relationship is still very new) or possibly a socialization effect (i.e., given a little more time and work experience at XYZ Company, second-year employees may grow more dissatisfied or frustrated). Etc.

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VII. CONTENT ANALYSIS OF RESPONSES TO OPEN-ENDED QUESTIONS We content-analyzed the responses to the surveys two open-ended questions. Both questions were two-part, so we treated them as four separate sub-questions for analysis purposes: 1a. In what way has XYZ Company most met your expectations for your work life, job, or career? In what ways has the company not met your expectations? We know job satisfaction can vary according to job characteristics like variety in the work, autonomy, and the importance of the job. What characteristics of your job do you like best? What characteristics of your job do you like least?

1b. 2a.

2b.

These questions generated 1,676 comments across an average of nine content categories per question from an average of 266 employees per question (326 employees answered at least one of the four sub-questions). Coding response content into categories is a qualitative, somewhat subjective process. However, it does allow us to get a sense of what the major issues represented in the responses are, both in terms of comment category frequency counts and understanding of themes within categories. Often, this process sheds additional light on issues raised by the quantitative part of the survey. Many of the handwritten responses were a half-page to a page in length. We have provided transcriptions of the comments under separate cover, and so will make just brief mention here of content code definition and some noteworthy themes. The reader will note that, in many cases, similar content appears in answers to both basic questions. While the idea was to assess key work, job, and career expectations in the first question and specific job characteristics in the second, it is apparent that, for some employees, their key employment expectations were about job content; thus, job characteristics appear in answers to both questions. Likewise, some respondents equate job characteristics with company-wide systems issues such as pay; thus, things that one would expect to be the object of high-level or general expectations also appear in the answers regarding job characteristics. We must look across both questions data, therefore, to assess the full weight of some issues confronting XYZ Company. Following is company-wide commentary. However, some of these opinions may be more prevalent in certain departments. Response percentages by department are available from LOMA upon request.

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Question 1a The content coding categories used for responses to question 1a, and their frequencies expressed as a percentage of total responses, are shown in the pie chart below. One hundred sixteen of the 380 employees surveyed abstained from answering this question.

Response category percentages for open-ended question 1a: In what way has XYZ most met your expectations for work life, job, or career?

Benefits 11%

Other 1%

Job security/job at all 10%

Hours/balance 12%

Satisfying/meaningful/ challenging job 16%

Environment/treatment 13%

Promotion/career opportunity 12%

Co-workers/teamwork 7%

Training/development 18%

Training, development, and knowledge/experience growth The most frequently occurring response topic involves the positive effects of training and development on the job. Employees expect opportunities to learn and gain skill on the job. Key themes that emerged in the responses are: Employees often cited professional growth, development, expanded skills, and continuous learning gained from both job experience and formal training. Some cited the industry-specific education (e.g., LOMA courses) theyve received. Technical job training for both content and skills also factors into this category.

Satisfying, meaningful job that is resource-supported and interesting/challenging

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This response category reflects employees met expectations for specific job content and job characteristics. Themes include: Job is challenging, with plenty of work to do to stay busy. This suggests challenge means mental challenge for some employees, and more of a time prioritization and behavioral challenge for others. Job is important or meaningful to the company. Job characteristics of autonomy and variety are apparently quite satisfying. Some employees expressed liking for specific job content and tasks (e.g., telephone contact). Some said XYZ Company has met their expectations by providing work for which theyre especially well suited or for which they studied in school.

Etc.

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SPECIFIC RECOMMENDATIONS TO ADDRESS XYZ COMPANYS PROBLEM AREAS

The following recommendations are offered in response to weaknesses revealed and questions raised by the survey data. Once the survey results are digested and interpreted from the better informed perspectives of company officials, these recommendations can be used as a starting point for improvement planning and action. Some of the recommendations may not directly fit with XYZ Companys culture, current systems and procedures, budget constraints, etc., so thoughtful consideration of each is needed. Also, bear in mind that, because many climate factors are interrelated, improvements in one area may have a beneficial effect in other areas, too. XYZ Company should capitalize on the strongest associations between company climate factors and employee morale, ensuring those climate factors are enhanced whenever possible. To review, employee morale in XYZ Company is most strongly associated with: Job security and diversity aspects of the Quality of Work Life dimension. Top management and direct supervision aspects of the Leadership dimension. Communication and individual knowledge (training) aspects of the Employee Involvement dimension. Top management commitment to quality, quality emphasis, and continuous improvement aspects of the Quality Service dimension. As noted in the executive summary, XYZ Company is significantly below the survey norm in four of the 26 measured areas: pay/benefits, diversity, company knowledge, and work groups continuous improvement. All four of these measures also featured prominently at one point or another in the between-groups analyses and open-ended question responses. Pay/Benefits Assess external compensation equity by conducting or acquiring updated local area and industry wage and benefit surveys to determine exactly where XYZ Company stands with respect to labor competitors. The bulk of relevant benchmarks will be local to the Anytown area but some management jobs may well be best priced on a national market or industry basis. Assess internal compensation equity by reviewing the companys salary structure and pay practices. Are they still in line with related skill levels, competencies, and job demands? Do they provide additional incentive for excellent individual and/or teamwork performance?

Etc.

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