KPMG - motivation and meaning
KPMG, the audit, tax, and advisory firm, has enjoyed high employee morale for the last
several years— about 80% of its 29,000 professionals say it is a great place to work.
But the firm wanted to understand what was driving this sentiment.
Analysis of its annual employee survey revealed one item as a particularly strong driver
of employee engagement, retention, and pride: “I feel like my job has special meaning
and is not just a job.” This finding prompted leadership to explore the value of purposedriven work (e.g., research shows workers who believe they’re having a social impact
are twice as satisfied with their jobs as those who don’t hold such beliefs) and make it
an integral part of how they talk to employees.
They wanted to get people talking about purpose to create a central narrative to connect
employees with the firm’s history of purposeful work. To do so, they began collecting
employee stories, highlighting the impactful work already being done, and teaching
leaders how to talk about purpose with their people.
As outlined in a Harvard Business Review article, KPMG conducted hundreds of
employee interviews asking questions like, “How does KPMG operate when we are at
our best?” and “What is unique about our firm’s culture?” The firm’s leadership team
then analyzed the qualitative data from these interviews through an extensive comment
coding process. A few themes emerged, which resulted in a new purpose statement:
“Inspire Confidence. Empower Change.” But KPMG’s leaders knew they needed to do
more than simply announce the new purpose statement; they wanted employees to
experience it for themselves.
So in 2014, leadership unveiled the Higher Purpose initiative, an effort to strengthen
people’s pride, engagement, and emotional connection to the firm by encouraging them
to recognize and celebrate the meaning and positive impact of the work they do. The
initiative started at the top, with corporate posters and a "We Shape History!" video, all
of which addressed the question, “What do you do at KPMG?”
But soon the firm also invited employees everywhere to share their own stories of
purpose-driven work. The results exceeded all expectations: The firm set out to collect
at least 10,000 stories and ended up with more than 40,000 from their 29,000
employees. These stories were then featured in the campaign across a variety of
channels, including print, digital, and live communications.
Having leaders talk about purposeful work had a significant impact on their employees’
sense of company pride and work satisfaction. KPMG’s research revealed that
employees whose leaders talked about purpose scored significantly higher on retention,
brand, and purpose-related items than those whose leaders did not.
Among employees who reported that their leaders discussed purpose, 94% said KPMG
is a great place to work and also said they were proud to work for KPMG. By
comparison, among those whose leaders didn’t discuss purpose, only 66% agreed
KPMG is a great place to work and just 68% were proud to work there. Those whose
leaders did not talk about purpose were also three times more likely to report they were
thinking about looking for another job. Not surprisingly, turnover in these two groups
was dramatically different: there was a 5.6% attrition rate for those individuals whose
leaders talked about purpose, versus 9.1% among those who leaders did not. What’s
more, employees whose leaders communicated about purpose were significantly more
motivated to strive for continuous improvement and high performance than colleagues
whose leaders failed to discuss this important topic. And these differences hold steady
across generations.
KPMG: Motivating Employees Through a Deeper Sense of Purpose.
Retrieved February 2, 2020 from https://rework.withgoogle.com/case-studies/KPMG-purpose/
MGMT 3720 VOCABULARY WORDS
CHAPTER 1
Anthropology - the study of societies to learn about human beings and their activities
Conceptual Skills - the mental ability to analyze and diagnose complex situations
Controlling - monitoring activities to ensure they are being accomplished as planned
and correcting any significant deviations
Human Skills - the ability to work with, understand, and motivate other people
Inputs - variables that lead to outputs, such as resources like labor, money, materials,
and energy.
Leading - a function that includes motivating employees, directing others, selecting the
most effective communication channels, and resolving conflicts
Manager - an individual who achieves goals through other people, using organizational
power.
Organization - a consciously coordinated social unit, composed of two or more people,
that functions on a relatively continuous basis to achieve a common goal or set of goals
Organizational Behavior - a field of study that investigates the impact that individual,
groups, and structures on behavior within organizations for the purpose of such
knowledge toward the organization's effectiveness.
Organizational Citizenship Behavior - discretionary behavior that contributes to the
psychological and social environment of the workplace
Organizing - determining what tasks are to be done, who is to do them, how the tasks
are to be grouped, who reports to whom, and where decisions are to be made
Outcomes - key factors that are affected by some other variables, the product of a
process.
Planning - a process that includes defining goals, establishing strategy, and developing
plans to coordinate activities
Processes - actions that individuals, groups, and organizations engage in as a result of
inputs and that lead to certain outcomes
Psychology - The science that seeks to measure, explain, and sometimes change the
behavior of humans and other animals.
Social Psychology - an area of psychology that blends concepts from psychology and
sociology and that focuses on the influence of people on one another
Sociology - the study of people in relation to their social environment or culture
Technical Skills - the ability to apply specialized knowledge or expertise
CRP and CoP
boundary - a reified line that marks the end of an organization; determines what is
inside and outside of an organization.
Complex Responsive Processes - A theory of human thought and communication, which
emphasizes human existence as mutating patterns of social engagement that are
simultaneously dynamic and persistent.
explicit knowledge - the more objective, rational, and technical types of knowledge;
knowledge that can be easily recorded and disseminated en masse.
Negotiation of Meaning - A constantly ongoing social process involving participation and
reification, through which people come to understand, classify, and value the world
around them.
organizational identity - The perception of the organization as created by the habitual
actions of the people within the organization. It communicates to members and others
what they organization is and what they can expect it to do.
participation - A process of taking part in some activity or enterprise with other people.
practice - A meaning driven engagement with others in the context of everyday life.
Practice is a process of habitually doing meaningful things with others.
reification - Giving an abstract concept a name and then treating it as though it were a
concrete, tangible object. To reify is to make something real which is not otherwise
tangible.
social animals - Beings that are always and only engaged in acts of relating to the world
around them.
tacit knowledge - Knowledge that cannot be codified because it is embodied. It
concerns knowing how to do a certain task and can be acquired only through active
participation in that task
Whorf Hypothesis - the hypothesis that the words and structures of a language can
affect how the speakers of that language conceptualize or think about the world
CHAPTER 3
Affective Component - An intention to behave in a certain way toward someone or
something.
Attitudes - evaluative statements or judgments concerning objects, people, or events
Behavioral Component - an intention to behave in a certain way toward someone or
something
Cognitive Component - the opinion or belief segment of an attitude
Employee Engagement - an individual's involvement with, satisfaction with, and
enthusiasm for the work he or she does
Exit - dissatisfaction expressed through behavior directed toward leaving the
organization
Four Employee Responses to Dissatisfaction - exit, voice, loyalty, neglect
Job Involvement - the degree to which a person identifies with a job, actively
participates in it, and considers performance important to self-worth
Job Satisfaction - a positive feeling about one's job resulting from an evaluation of its
characteristics
Loyalty - dissatisfaction expressed by passively waiting for conditions to improve
Neglect - dissatisfaction expressed through allowing conditions to worsen
Organizational Commitment - the degree to which an employee identifies with a
particular organization and its goals and wishes to maintain membership in the
organization
Psychological Empowerment - employees' belief in the degree to which they affect their
work environment, their competence, the meaningfulness of their job, and their
perceived autonomy in their work
Voice - dissatisfaction expressed through active and constructive attempts to improve
conditions
CHAPTER 4
Affect - a broad range of feelings that people experience
Affective Events Theory (AET) - A model suggesting that workplace events cause
emotional reactions on the part of employee, which then influence workplace attitudes
and behaviors.
Emotional Dissonance - Inconsistencies between the emotions people feel and the
emotions they project.
Emotional Intelligence (EI) - the ability to detect and to manage emotional cues and
information
Emotions - Intense, discrete, and short-lived feelings experiences that are often caused
by a specific event.
Moods - Feelings that tend to be longer-lived and less intense than emotions and that
lack a contextual stimulus.
Negative Affect - a mood dimension that consists of emotions such as nervousness,
stress, and anxiety at the high end and relaxation, tranquility, and poise at the low end
Positive Affect - a mood dimension that consists of specific positive emotions such as
excitement, self-assurance, and cheerfulness at the high end and boredom,
sluggishness, and tiredness at the low end
CHAPTER 5
Collectivism - a national culture attribute that describes a tight social framework in
which people expect others in groups of which they are a part to look after them and
protect them
Core-Self Evaluations - bottom-line conclusions individuals have about their capabilities,
competence, and worth as a person
Femininity - A national culture attribute that indicates little differentiation between male
and female roles; a high rating indicates that women are treated as the equals of men
in all aspects of the society.
Heredity - factors determined at conception; one's biological, physiological, and
inherent psychological makeup
Individualism - a national culture attribute that describes the degree to which people
prefer to act as individuals rather than as members of groups
Long-Term Orientation - a national culture attribute that emphasizes the future, thrift,
and persistence
Masculinity - A national culture attribute that describes the extent to which the culture
favors traditional masculine work roles of achievement, power, and control. Societal
values are characterized by assertiveness and materialism.
Myers-Briggs Type Indicator (MBTI) - a personality test that taps four characteristics
and classifies people into 1 of 16 personality types
Personality - The sum of ways in which an individual reacts to and interacts with others
Personality Traits - enduring characteristics that describe an individual's behavior
Personality-Job Fit Theory - a theory that identifies six personality types and proposes
that the fit between personality type and occupational environment determines
satisfaction and turnover
Power Distance - The degree to which people in a country accept that power in
institutions and organizations is distributed unequally.
Self-Monitoring - A personality trait that measures an individual's ability to adjust his or
her behavior to external, situational factors.
Short-Term Orientation - a national culture attribute that emphasizes the present and
accepts change
Uncertainty Avoidance - A national culture attribute that describes the extent to which a
society feels threatened by uncertain and ambiguous situations and tries to avoid them.
Value System - a hierarchy based on a ranking of an individual's values in terms of their
intensity
CHAPTER 6
Attribution Theory - An attempt to explain the ways we judge people differently,
depending on the meaning we attribute to a behavior, such as determining whether an
individual's behavior is internally or externally caused.
Bounded Rationality - a process of making decisions by constructing simplified models
that extract the essential features from problems without capturing all their complexity
Creativity - the ability to produce novel and valuable ideas
Decisions - choices made from among two or more alternatives
Halo Effect - the tendency to draw a general impression about an individual on the
basis of a single characteristic
Horns Effect - the tendency to form an overall negative impression of a person on the
basis of one negative characteristic
Idea Generation - the process of creative behavior that involves developing possible
solutions to a problem from relevant information and knowledge
Information Gathering - the stage of creative behavior when possible solutions to a
problem incubate in an individual's mind
Intuitive Decision Making - an unconscious process created out of distilled experience
Perception - a process by which individuals organize and interpret their sensory
impressions in order to give meaning to their environment
Problem - a discrepancy between the current state of affairs and some desired state
Problem Formulation - the stage of creative behavior that involves identifying a problem
or opportunity requiring a solution that is as yet unknown
Rational - characterized by making consistent, value-maximizing choices within specified
constraints
Rational Decision-Making Model - a decision-making model that describes how
individuals should behave in order to maximize some outcome
Selective Perception - the tendency to choose to interpret what one sees based on
one's own interests, experience, background, or attitudes
CHAPTER 2
Ability - an individual's capacity to perform the various tasks in a job
Biographical Characteristics - personal characteristics - such as age, gender, race, and
length of tenure - that are objective and easily obtained from personnel records. these
characteristics are representative of surface-level diversity
deep-level diversity - differences in values, personality, and work preferences that
become progressively more important for determining similarity as people get to know
one another better
Discrimination - Noting of a difference between things; often we refer to unfair
discrimination, which means making judgments about individuals based on stereotypes
regarding their demographic group.
Diversity Management - the process and programs by which managers make everyone
more aware of and sensitive to the needs and differences of others
General Mental Ability (GMA) - an overall factor of intelligence, as suggested by the
positive correlations among specific intellectual ability dimensions
Intellectual Abilities - the capacity to do mental activities- thinking, reasoning, and
problem solving
physical ability - the capacity to do tasks that demand stamina, dexterity, strength, and
similar characteristics
positive diversity climate - In an organization, an environment of inclusiveness and
acceptance of diversity
Stereotype Threat - the degree to which we internally agree with the generally negative
stereotyped perceptions of our groups
Stereotyping - Judging someone based on one's perception of the group to which that
person belongs
surface-level diversity - differences in easily perceived characteristics, such as gender,
race, ethnicity, age, or disability, that do not necessarily reflect the ways people think or
feel but that may activate certain stereotypes
CHAPTER 7
Cognitive Evaluation Theory - A version of self-determination theory in which allocating
extrinsic rewards for behavior that had been previously intrinsically rewarding tends to
decrease the overall level of motivation if the rewards are seen as controlling.
Distributive Justice - perceived fairness of the amount and allocation of rewards among
individuals
Equity Theory - A theory stating that individuals compare their job inputs and outcomes
with those of others and then respond to eliminate any inequities.
Hierarchy of Needs - Abraham Maslow's hierarchy of five needs - physiological, safety,
social, esteem, and self-actualization - in which, as each need is substantially satisfied,
the next need becomes dominant
Job Engagement - the investment of an employee's physical, cognitive, and emotional
energies into job performance
Motivation - the processes that account for an individual's intensity, direction, and
persistence of effort toward attaining a goal
Self-Concordance - the degree to which peoples' reasons for pursuing goals are
consistent with their interests and core values
Self-Determination Theory - A theory of motivation that is concerned with the beneficial
effects of intrinsic motivation and the harmful effects of extrinsic motivation.
Self-Efficacy Theory - An individual's belief that he or she is capable of performing a
task.
CHAPTER 8
Autonomy - the degree to which a job provides substantial freedom, independence, and
discretion to the individual in scheduling work and determining the procedures to be
used in carrying it out
Employee Recognition Program - a plan to encourage specific employee behaviors by
formally appreciating specific employee contributions
Feedback - the degree to which carrying out the work activities required by a job results
in the individual obtaining direct and clear information about the effectiveness of his or
her performance
Flexible Benefits - a benefits plan that allows each employee to put together a benefits
package individually tailored to his or her own needs and situation
Flextime - flexible work hours
Job Characteristics Model (JCM) - A model proposing that any job can be described in
terms of five core job dimensions: skill variety, task identity, task significance,
autonomy, and feedback.
Job Enrichment - Adding high-level responsibilities to a job to increase intrinsic
motivation.
Job Rotation - the periodic shifting of an employee from one task to another
Participative Management - a process in which subordinates share a significant degree
of decision-making power with their immediate superiors
Representative Participation - a system in which workers participate in organizational
decision making through a small group of representative employees
Skill Variety - The degree to which a job requires a variety of different activities.
Task Identity - the degree to which a job requires completion of a whole and
identifiable piece of work
Task Significance - The degree to which a job has substantial impact on the lives or
work of other people
CHAPTER 9
Cohesiveness - the degree to which group members are attracted to each other and are
motivated to stay in the group
Formal Group - a designated work group defined by an organization's structure
Group - two or more individuals, interacting and interdependent, who have come
together to achieve particular objectives
Informal Group - A group that is neither formally structured nor organizationally
determined; such a group appears in response to the need for social contact.
Norms - Acceptable standards of behavior within a group that are shared by the group's
members.
Punctuated-Equilibrium Model - a set of phases that temporary groups go through that
involves transitions between inertia and activity
Role Perception - an individual's view of how he or she is supposed to act in a given
situation
Status - a socially defined position or rank given to groups or group members by others
Status Characteristics Theory - A theory stating that differences in status characteristics
create status hierarchies within groups
CHAPTER 10
Cross-functional teams - employees from about the same hierarchical level, but from
different work areas, who come together to accomplish a task
Problem-solving Teams - groups of 5 to 12 employees from the same department who
meet for a few hours each week to discuss ways of improving quality, efficiency, and
the work environment
reflexivity - a team characteristic of reflecting on and adjusting the master plan when
necessary
social loafing - the tendency for individuals to expend less effort when working
collectively than when working individually
team cohesion - a situation when team members are emotionally attached to one
another and motivated toward the team because of their attachment.
team efficacy - a team's collective belief that they can succeed at their tasks
team identity - a team member's affinity for an sense of belongingness to his or her
team.
Work Group - a group that interacts primarily to share information and make decisions
to help each member perform within his or her area of responsibility
Work Team - a group whose individual efforts result in performance that is greater than
the sum of the individual inputs
CHAPTER 15
Cost-Minimization Strategy - a strategy that emphasizes tight cost controls, avoidance
of unnecessary innovation or marketing expenses, and price cutting
Innovation Strategy - a strategy that emphasizes the introduction of major new
products and services
Mechanistic Model - a structure characterized by extensive departmentalization, high
formalization, a limited information network, and centralization
Organic Model - a structure that is flat, uses cross-hierarchical and cross-functional
teams, has low formalization, possesses a comprehensive information network, and
relies on participative decision making
Organizational Structure - the way in which job tasks are formally divided, grouped, and
coordinated
Simple Structure - an organizational structure characterized by a low degree of
departmentalization, wide spans of control, authority centralized in a single person, and
little formalization
Virtual Structure - a small, core organization that outsources major business functions
Work Specialization - The degree to which tasks in an organization are subdivided into
separate jobs.
CHAPTER 16
Adaptability - the degree to which employees are encouraged to be innovative and
flexible as well as take risks
Collaboration/Team Orientation - the degree to which work activities are organized
around teams rather than individuals
core values - The primary or dominant values accepted throughout the organization
Detail Orientation - the degree to which employees are expected to exhibit precision,
analysis, and attention to detail
dominant culture - a culture that expresses the core values that are shared by a
majority of the organization's members
ethical culture - the shared concept of right and wrong behavior in the workplace that
reflects the true values of the organization and shapes the ethical decision making of
the members
Integrity - the degree to which people exhibit integrity and high ethical standards in
their work.
material symbols - what conveys to employees who is important, the degree of
egalitarianism top management desires, and the kinds of behavior that are appropriate
organizational climate - the shared perceptions organizational members have about
their organization and work environment
Organizational Culture - a system of shared meaning held by members that
distinguishes the organization from other organizations
People/Customer Orientation - the degree to which management decisions consider the
effect of outcomes on people within and outside the organization
positive organizational culture - a culture that emphasizes building on employee
strengths, rewards more than punishes, and emphasizes individual vitality and growth
Results/Outcome Orientation - the degree to which management focuses on results or
outcomes rather than on the techniques and processes used to achieve them
rituals - repetitive sequences of activities that express and reinforce the key values of
the organization, which goals are most important, which people are important, and
which are expendable
Six primary characteristics of culture - adaptability, detail orientation, results/outcome
orientation, people customer orientation, collaboration/team orientation, integrity
strong culture - a culture in which the core values are intensely held and widely shared
subcultures - minicultures within an organization, typically defined by department
designations and geographical separation
1. Using concepts from course materials, explain why KPMG
employees believing in the purpose of their work increases (1) job satisfaction (pg 118),
(2) performance (pg 124), and (3) retention.
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Employees who feel empowered by their leaders experience higher job satisfaction, one
study of a large Hong Kong telecommunications corporation found. Research in Israel
suggested that a manager’s attentiveness, responsiveness, and support increase the
employee’s job satisfaction. (121)
Giving people performance feedback—whether real or fake—influences their mood,
which then influences their motivation.A cycle can be created in which positive moods
cause people to be more creative, leading to positive feedback from those observing
their work. The feedback further reinforces the positive mood, which makes people
perform even better, and so on. Overall, the findings suggest a manager may enhance
employee motivation—and performance—by encouraging good moods.(160)
, intrinsic factors such as advancement, recognition, responsibility, and achievement
seem related to job satisfaction. Respondents who felt good about their work tended to
attribute these factors to their situations, while dissatisfied respondents tended to cite
extrinsic factors, such as supervision, pay, company policies, and work conditions.(249)
A more recent outgrowth of self-determination theory is self-concordance, which
considers how strongly people’s reasons for pursuing goals are consistent with their
interests and core values. (253)
Across cultures, if individuals pursue goals because of intrinsic interest, they are more
likely to attain goals, are happier when they do, and are happy even if they do not.20
Why? Because the process of striving toward goals is fun whether or not the goal is
achieved. Recent research reveals that when people do not enjoy their work for intrinsic
reasons, those who work because they feel obligated to do so can still perform
acceptably, though they experience higher levels of strain as a result. (253)
Self-efficacy can create a positive spiral in which those with high efficacy become more
engaged in their tasks and then, in turn, increase performance, which increases efficacy
further.51 One recent study introduced a further explanation, in that self-efficacy was
associated with a higher level of focused attention, which led to increased task
performance. (258)
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