You are on page 1of 28

Term paper on

Characteristics of a
Good Employer
Term paper on
Characteristics of a Good Employer

Course: Compensation Management


Course Code: HRM 412
Section: 2

Submitted to
Mr. S.S.M. Sadrul Huda
Assistant Professor
DBA, East West University

Submitted by
1. Md. Rezaur Rahman (2008-2-10-018)
2. Md. Hasibur Rahman (2008-2-10-114)
3. Shati Itminan (2008-2-10-121)
4. Shaila Rahman Khan (2008-2-13-001)
5. Bushra Mostafa (2008-2-13-045)

Date of Submission
20th April, 2011
April 20, 2011

Mr. S.S.M. Sadrul Huda


Assistant Professor
DBA, East West University
Mohakhali, Dhaka, Bangladesh

Subject: Submission of term paper on Characteristics of a Good Employer

Dear Sir,

Here is the term paper we, three group members were assigned to work for the
assignment on “Characteristics of a Good Employer” as the final term paper for the
course “HRM 412”.

During group work, we found it quite absorbing and enjoyable to work with the practical
aspects and executive’s perceptions towards job satisfaction and good employment
strategy. As a result, the group participation was maximum and the outcome was quite
productive.

Due to confidential policy and individual reluctance to provide information, we were


able to have limited information from them. Despite the time constraints and other
problems, we have tried our best to make the project as logical as we could.

Therefore, we would be obliged if you please accept this assignment. If any further
assistance are needed please contact us.

Sincerely yours,

1. Md. Rezaur Rahman …………………

2. Md. Hasibur Rahman…………………

3. Shati Itminan …………………………

4. Shaila Rahman Khan…………………

5. Bushra Mostafa ………………………


Acknowledgment

The Compensation Management Research paper, “Characteristics of a Good Employer”


is the most important addition to the practical application of theoretical knowledge and
experience on HRM Research Course of the team. This is really a delightful experience.

It is amazing and fascinating finding so many dependable people around, who have given
necessary guidelines and advices while formulating this paper. Learning what determines
a good employer, the team remains ever grateful to them, who all have helped to write
this report. We also extend our acknowledgement to all those, who helped us by
answering our queries pertinent to the data collection of our report.

A special debt is due to our instructor Mr. S.S.M. Sadrul Huda, our respected faculty
for the valuable guidance in the preparation of this report. We have been immensely
benefited from his valuable guidance in the process of understanding and preparing this
report. His advice and guidance in the work has immensely inspired the team to
consistently work hard. Mr. S.S.M. Sadrul Huda has always been very helpful and
generous. Without his active support, continuous encouragement, and constructive
criticism, probably it would not be possible to write an informative and objective report.
Her active assistance in working out a framework for the paper has helped to complete
the assignment within given time.

We also acknowledge the contributions of the librarian of East West University, 43


Mohakhali, C/A, Dhaka-1212 for allowing us to utilize their library facilities.
Table of Contents

Contents Page

Executive Summary v

Chapter 1: Introduction 6
1.1 Introduction 6
1.2 Objective and the Scope of the Report 6
1.3 Methodology of the Report 7
1.4 Primary Sources 7
1.5 Secondary Sources 8
1.6 Limitations of the study 8

Chapter 2: Theories Regarding a Good Employer 9


2.1 Different Perspectives of a Good Employer 9
2.2 Traits of Good Employers 11
2.3 Why do People Join in a Firm 12

Chapter 3: Findings from the Questionnaire 13


3.1 Demography of the Sample 13
3.2 Major Findings 16
3.3 Regression and Correlation Analysis 20
3.3.1 Regression Analysis 20
3.3.2 Correlation Analysis 20
3.3.3 Interpretation 21

Chapter 4: Summary and Conclusion 22


4.1 Summary 22
4.2 Decision Rule 22
4.3 Conclusion 23

5. References 24

6. Sample Questionnaire 25
Executive Summary
Most people have at least one employer in their lifetime. Some have a few. Others have
more than they would possibly want to tally. There are good employers and there are bad
employers. For anyone who has worked for more than a few years or changed jobs more
than once he/she know that he/she can work for a great company and still have a
miserable boss.

For each of us the traits of a good employer might be slightly different to fit our personal
needs even our needs at specific times in our lives. The traits of a great manager might
vary based on our own personality quirks and even the stage of our career. One thing is
certain though there are common traits that make a stellar employer and a standout
manager.

A good employer will in good faith listen to the input of all employees regardless of the
suggestion and what rank the employee may have in the company.

Throughout this report, we tried to identify what are the traits that work as major
determinants and are valued significantly by the employees. Among the different traits
employees vote significantly to company reputation, employee benefits, flexible job
hours and incentives for hard, creative and challenging work. Employers who provide all
these benefits are called the “Employer of choice”.
 
 

1. Introduction

1.1 Introduction

A good employer is someone at the workplace who gets someone motivated to work
happily, to contribute to what he/she do, to explore for their own potentials, and to go
further in the career. People were not born good employers- they became good employers
through constant learning to work well with people.

Here in this term paper we tried to identify the essential traits that enable one employer to
stand out of the crowd.

In order to carry out the research study, certain approaches and methodologies are
required to be followed. The following approaches were followed in conducting this term
paper.

1.2 Objective and the Scope of the Report:

The report was prepared as a part of our course work. The basic objectives of preparing
this report is

1. To find out the reasons why employees like to join in a specific firm.
2. To find out what factors make one employee happy and committed to one firm.
3. To summarize and interpret the essential traits that an employer should possess to
become the employer of choice.

6 | P a g e  
 
 
 

1.3 Methodology of the Report:

The research was based on both exploratory and descriptive method. A random set of
sample had chosen and a questionnaire was given. A qualitative evaluation was utilized
for this research project leveraging subjective methods such as interviews and
observations to collect substantive and relevant data. The facts and figures of this term
paper were derived based on the data given by the sample and also by the face to face
conversation with different employees. A careful study of the different established
theories and articles on good employer and sources of job satisfaction was also
undertaken.

Based on the data, given by the sample, a numbers of statistical methods had been used to
determine the objectives of the term paper. Different graphical presentations like pie
charts were used and by using the methods like Regression , Correlation Analysis, we
identified exactly which factors employees value considerably in judging a good
employer.

1.4 Primary Sources:

The report was mainly based on the data derived from primary sources and the primary
sources of data was mainly derived from the analysis we got form the answers given by
the random samples on the survey. The primary sources are given below.

• Questionnaire given to the consumers


• Face to face conversion with the different part time and full time workers
• Interview with employers

7 | P a g e  
 
 
 

1.5 Secondary Sources:

The secondary sources that helped us to perfect and enrich this term paper are given
below.

• Articles on leadership and good employer


• Newspaper
• Different web sites containing traits of a good employer

1.6 Limitations of the study:

Of course this term paper is not flawless and we had several limitations. The limitations
of the study are given below.

• The stipulated time was not sufficient to get a clear and real picture of the essential
characteristics of a good employer.
• We also faced a budget constrain to undertake a massive scale survey program.
• Due to the company policy and highly classified database, some employees and
managers showed little interest on disclosing their confidential information
regarding job satisfaction and job of interest.
• Many procedural matters conducted directly in the operations by the top
management level, which also gave some sort of restriction.
• The survey is entirely Dhaka based. We undertook the survey in Dhaka city only
so probably this report does not reveal a total depiction of the entire scenario of
160 million people.
• As the report was based on data given by different persons, a distortion in report
may occur if they had given wrong information.
 

8 | P a g e  
 
 
 

2. Theories Regarding a Good Employer


2.1 Different Perspectives of a Good Employer

Different perspectives describe the good or ideal employers and leaders from different
angles. Some theories are discussed below.

1. "Great Man" Theories:

Great man theories assume that the capacity for employer style is inherent – that great
leaders or employers are born, not made. These theories often portray great leaders as
heroic, mythic and destined to rise to leadership when needed.

2. Trait Theories:

Similar in some ways to "Great Man" theories, trait theories assume that people inherit
certain qualities and traits that make them better suited to good employer. Trait theories
often identify particular personality or behavioral characteristics shared by employers.

3. Contingency Theories:

Contingency theories focus on particular variables related to the environment that might
determine which particular styles of employer traits are best suited for the situation.
According to this theory, no leadership style is best in all situations. Success depends
upon a number of variables, including the leadership style, qualities of the followers and
aspects of the situation.

4. Situational Theories:

Situational theories propose that leaders or employers choose the best course of action
based upon situational variables. Different styles of leadership may be more appropriate
for certain types of decision-making.

5. Behavioral Theories:

9 | P a g e  
 
 
 

Behavioral theories are based upon the belief that great employers are made, not born.
Rooted in behaviorism, this theory focuses on the actions of employers not on mental
qualities or internal states. According to this theory, people can learn to become good
employers through teaching and observation.

6. Participative Theories:

Participative theories suggest that the ideal leadership style is one that takes the input of
others into account. These employers encourage participation and contributions from
group members and help group members feel more relevant and committed to the
decision-making process. In participative theories, however, the employer retains the
right to allow the input of others.

7. Management Theories:

Management theories, also known as transactional theories, focus on the role of


supervision, organization and group performance. These theories focus on a system of
rewards and punishments. Managerial theories are often used in business; when
employees are successful, they are rewarded; when they fail, they are reprimanded or
punished.

8. Relationship Theories:

Relationship theories, also known as transformational theories, focus upon the


connections formed between employer and the employees. Transformational employers
motivate and inspire people by helping group members see the importance and higher
good of the task. These employers are focused on the performance of group members, but
also want each person to fulfill his or her potential. Employers with this style often have
high ethical and moral standards.

10 | P a g e  
 
 
 

2.2 Traits of Good Employers

For each of us the traits of a good employer might be slightly different to fit our personal
needs even our needs at specific times in our lives. The traits of a great manager might
vary based on our own personality quirks and even the stage of our career. One thing is
certain though there are common traits that make a stellar employer and a standout
manager.

The common values that distinguish an employer as excellent or heads and shoulders
above the rest are discussed below.

• Treats all employees as valuable members of the organization from the file clerk
to the CEO. This includes providing consistent benefits and fair compensation
plans commensurate with market and contribution.
• Treats all employees with respect and courtesy and requires that that same
treatment be accorded at all levels of the organization.
Provides a learning environment for all employees. Organizations that focus on
internal learning and encourage employees toward both internal cross training and
external education will reduce attrition and increase employee satisfaction.
• Provides opportunity for advancement based on contribution and capabilities

• He or she should have a standard of excellence and ethics in its treatment of its
financial management that can withstand the closest audit.

• Great managers genuinely seek to enhance the careers of their employees through
mentoring.

11 | P a g e  
 
 
 

• Great managers share the wealth. This means they are quick to recognize their
employees for their contributions to group and corporate success. Great managers
never accept success as an individual achievement.
• Great managers seek opportunities to advance their employees into positions of
greater authority even if this means they will lose a key player on their team to
other parts of the organization.
• Great managers create environments of trust in which all members of an
organization are equally respected and have an equal opportunity to advance and
contribute based upon capabilities.

2.3 Why do People Join in a Firm

The basic factors that works as incentives for one employee to join and stay in a firm are

• Job security: Job security usually arises from the terms of the contract of
employment, collective bargaining agreement, or labor legislation that
prevents arbitrary termination, layoffs, and lockouts.
• Company Reputation: The brand name of the company also works as a
significant determinant of a good job.
• Benefits: Benefits means the jobs that have medical benefit, retirement and death
benefits, annual increment pay, paid vacation and paid sick leave etc.
• Flexibility: Workplace flexibility may include having traditional flextime; having
daily flextime; being allowed to take time off etc.
• Opportunities to Use Skills and Abilities: Employees value the jobs highly
which pays extra money for the additional skills , abilities and competencies of the
employees.
• Work itself : The work itself is a great determinant of the attractiveness of the job.
• Compensation/Pay: Last but not least, compensation or salary pays a huge impact
on the decision of an employee to join or stay in the job. Keeping all the variables
constant, the more the salary of one job, the more attractive the job is.

12 | P a g e  
 
 
 

Chapter 3: Findings from the Questionnaire

3.1 Demography of the Sample:

A random sample of 25 employees had been surveyed. We tried to pick the sample of
maximum heterogeneity. The demography of the sample is discussed below.

Age
31-40
32.00

Age: 68% of the


sample have the age
ranging from 21 -30
years and the rest 32%
people are aged 31-40
years.
21-30
68.00

Gender
Female
Gender: 12% of the
12.00
sample was female
executives and the rest
88% people were male
executives.

Male 13 | P a g e  
  88.00
 
 
Job Experiences
Job Experience:
5 years 28% of the sample
8.00
had job experience of
1 year

2-5 years 28.00 1 year, 8% had 5


20.00 years, 20% had
experience of 2 years
20% had experience
of 2-5 years and the
2 years
2
20.00
rest 24% had job
24.00
experience of more
than 5 years.

Education
Education: 16%
Masters
percent of the sample
20.00
had higher secondary
Higher Secondary degree, 64% had
16.00
graduate degrees and
the rest 20% had
master’s degrees.

Graduate
64.00

14 | P a g e  
 
 
 

Income
Income: 12% of the
40000+ Below 10000 executives had
8.00 12.00 income below 10000,
36% had income
31000-40000
between 10000-
24.00
20000 , 20% had

10000-20000 income between


36.00 21000-30000, 24%
had income between
21000-30000

20.00
31000-40000 and the
rest 8% had income
above 40000.

Nature of Job
Full Time

40.00

Nature of Job:
60% of the
employees were
part time job holder
and rest 40% were
Part Time

60.00 full time job holder.

15 | P a g e  
 
 
 

3.2 Major Findings

We asked our sample 10 different dimensions which determine job satisfaction and the
characteristics of a good employer. Paid vacations, Training Opportunity, Brand name etc
were the dimensions.

1. Paid Vacations: 36% of


the executives were strongly
agreed that good job means it
has paid vacation. 44%
agreed, 12% were neutral 8%
denied that paid vacations
does not guarantee a good
job.

2. Company Brand Name:


In response to the question
about the importance of the
brand name of the company,
52% strongly agreed that
brand name is important,
28% merely agreed, 4% were
neutral, 12% disagreed and
the rest 4% strongly denied
this.

16 | P a g e  
 
 
 

3. Adjusted Salary with Inflation: 36%


strongly agreed that salary has to be
adjusted with inflation, 20% agreed , 32
% were neutral, 4 % disagreed and the
rest 8% strongly denied this concept.

4. Importance of Office Environment:

40% percent strongly agreed that office


environment is very important, 32%
agreed, 12% were neutral and the rest
16% were disagreed that office
environment is a determinant of good
employer.

5. Payment for Overtime:  56% strongly


agreed that the employer should pay for
overtime, 24% agreed , 12% were neutral
and the rest 8% denied that overtime
should be compensated.

17 | P a g e  
 
 
 

6. Employee Benefits: 40% of the sample


strongly agreed that employee should have
benefits. 24% agreed , 32 % were neutral
and the rest 4% disagreed that employee
should get benefits.

7. Challenging Work: According to the


sample, 32% strongly agreed that they love
challenging works, 24% agreed, 40% were
neutral and the rest 4% were disagreed that
challenging work is a determinant of good
employer.

8. 9 AM to 5 PM Job: 12 % strongly
agreed that they like 9 AM to 5 PM routine
job, 16% agreed, 24% were neutral, 20%
disagreed and the rest 28% strongly
disagreed this kind of routine job.

18 | P a g e  
 
 
 

9. Creativity and Hard Work: A major


part 76% strongly agreed that the job
should pay for creativity and hard work.
20% agreed and the rest 4% was neutarl.
Nobody was denied this variable.

10. Training Opportunities: 48% dictated


that they strongly need training
opportunity in their job, 12% agreed, 32%
were neutral , 4% disagreed and the rest
4% people strongly rejected the
importance of training opportunities in job.

11. Job Satisfaction: Our last question


was “Are you satisfied with your job?” In
the response on the question, 16% was
strongly satisfied, 32% were satisfied, 48%
was neutral , 4 % was dissatisfied and the
rest 16% was strongly dissatisfied to their
jobs.

19 | P a g e  
 
 
 

3.3 Regression and Correlation Analysis

3.3.1 Regression Analysis

We took job satisfaction as dependent variable, and took all the others (Paid vacation,
training, benefits, brand name, adjusted salary, 9 AM – 5 PM job, creativity, challenging
work, office environment and overtime) as independent variables. Using the regression
model of SPSS, we got the regression equation. The coefficient of determination (R2)
was .522

That means, .522 or 52.2 % of the total variation in the dependent variable Y is explained
or accounted for by the variation in the 10 independent variables - Paid vacation, training,
benefits, brand name, adjusted salary, 9 AM – 5 PM job, creativity, challenging work,
office environment and overtime.

The rest 47.8 percent is unexpected variation.

3.3.2 Correlation Analysis

The correlation matrix is given below.

Dependent Variable Independent Variable Correlation


Job Satisfaction Paid Vacations .157
Job Satisfaction Brand Name .221
Job Satisfaction Adjusted Salary .173
Job Satisfaction Office Environment -.065
Job Satisfaction Overtime -.063
Job Satisfaction Training -.017
Job Satisfaction Creativity and Hard Work .019
Job Satisfaction 9 AM – 5 PM Job -.244
Job Satisfaction Benefits .16
Job Satisfaction Challenging Work .13

20 | P a g e  
 
 
 

3.3.3 Interpretation:

1. Keeping all other variables constant, Paid Vacation (15.7%) has a strong positive
relation with job satisfaction.

2. Keeping all other variables constant, Brand name (22.1%) has a strong positive
relation with job satisfaction.

3. Keeping all other variables constant, Adjusted Salary (17.3%) has a strong positive
relation with job satisfaction.

4. Keeping all other variables constant, Office Environment (-6.5%) has a moderate
negative relation with job satisfaction.

5. Keeping all other variables constant, Overtime (-6.3%) has a moderate negative
relation with job satisfaction.

6. Keeping all other variables constant, Training (-1.7%) has a weak negative relation
with job satisfaction.

7. Keeping all other variables constant, Creativity and Hard Work (1.9%) has a weak
positive relation with job satisfaction.

8. Keeping all other variables constant, 9AM to 5 PM job (-24.4%) has a strong
negative relation with job satisfaction.

9. Keeping all other variables constant, Benefits (16.0%) has a strong positive relation
with job satisfaction.

10. Keeping all other variables constant, Challenging Work (13.0%) has a moderate
positive relation with job satisfaction.

21 | P a g e  
 
 
 

Chapter 4: Summary and Conclusion

4.1 Summary

Base on the above discussion and analysis, we can conclude that not all the independent
variables act evenly to determine the level of satisfaction. Some variables have strong
positive relationship, some have moderate positive relationship and some have negative
relationship with job satisfaction.

4.2 Decision Rule

• People don’t like fixed 9 AM to 5 PM jobs.


• Office Environment, Overtime benefit and Training facility are not
very important.
• People value the Brand Name of the company highly.
• Paid Vacations, Adjusted Salary and Benefits are also important.
• Job Satisfaction increases significantly with income level.
• Job Satisfaction also Increase moderately with age.
• Job Satisfaction and Job Experience are barely related to each other.

22 | P a g e  
 
 
 

4.3 Conclusion

In a nutshell, it can be stated that becoming a good boss is not something that takes
overnight. It is an ongoing learning process with struggles along the way. But once one is
are to achieve a perfect balance between the needs of the company, employee and himself
or herself, he or she is on the way to becoming an effective and good employer whom
people respect and revere .The essential characteristics that makes a good employer can
be contingent and variable among person to person. Some people like to seek security
and stability in the jobs whereas others value the flexibility significantly. Some people
focus more on the benefits and some focus on base payments. Some people value one
employer higher if he or she provides enough challenging and creative work and some
other have a knack for rigid and fixed job descriptions.

Bottom line is that great employers and excellent organizations have several similarities.
There are of course other components of a good employer that are less esoteric then the
above description; things like medical benefits, educational benefits, family leave. But in
brief, those who provide Paid vacations, different employee benefits, inflation adjusted
salary, flexible job description, incentive and patronization for creativity, challenging
work and of course have a good brand name to the mind of the employees- are the
example of good employers.

23 | P a g e  
 
 
 

5. References
Electronic References:

1. Cherry, Kendra. Leadership theories- 8 major leadership theories. About.com guide.


Retrieved from http://psychology.about.com/od/leadership/p/leadtheories.htm

2. Loger, Valentine. Traits of a good employer. Helium: Employers. Retrieved from


http://www.helium.com/items/840269-what-are-the-traits-of-a-good-employer?page=3

3. Worland, Darragh. Top five factors affecting job satisfaction. Tonic. Retrieved from
http://blog.tonic.com/top-5-factors-affecting-job-satisfaction/ 

4.  Kane, Mercus. What Makes a Good Employer - Qualities of a Good Boss. Ezine
Articles. Retrieved from http://ezinearticles.com/?What-Makes-a-Good-Employer---
Qualities-of-a-Good-Boss&id=1889997

Book References:

1. Meyer, Cristopher and Kirby, Julia; “Leadership in the age of transparency”- Harvard
Business Review, April 2010.

2. Lin, G.S. and Daft, Richard. L; “The leadership experience in Asia; Thomson;
“Personality and leadership style: The role of charisma, Page: 146 – 150.

24 | P a g e  
 
 
 

6. Sample Questionnaire

Strongly Agree Neutral Disagree Strongly


agree disagree
A good job means it has paid
vacation,holiday,personal days
When it comes to jobs a good brand
name is important
Salary has to be adjusted with inflation
Office environment is very important to
me
The office must pay for over time
The job must have training opportunity
There should be incentives for
creativity and hard work
I like 9 a.m. to 5 p.m. job
The job must have benefit,
pension,medical,insurance
I love challenging work and recognition
for completing of task
I’m happy with my present job

A. Respondent’s Profile

Name

(Optional):_______________________________________________________________

Age:□ Below20 years □21-30 years □ 31-40 years □41-50 years □50+years

Gender:□Male □Female

Marital Status: □Married □Unmarried □Divorced □Separated □Others

25 | P a g e  
 
 
 

Position: □Lower Management □ Mid-Level Management □Upper Mid-level


Management

Total Job Experience□1 year □2 years □Above 2 years but below 5 years□5 years

□Above 5 years but below 10 years □Above 5 years but below 10 years □10 years

□Above 10 years

Educational Background: □Primary □Secondary□Higher □Secondary □


Graduate□Masters □No education □others (specify)

Monthly income:□Below Tk 10000 □TK 10000-20000 □Tk21000-30000 □TK 31000-


40000 □Tk 40000+□……………………….

Nature of Job: □Fulltime□ Part time

Name of the Organization:

………………………………………………………………………………………………
…………………………………………..

Type of Organization:

□Manufacturing □Service □Trading □Others

26 | P a g e  
 
 
 

27 | P a g e