5OS07 Assignment Example
- September 2, 2022
- Posted by: Harry King
- Category: CIPD Level 5
PERMA Theory of Well-Being
PERMA theory of well-being explains the five major components of well-being. The term PERMA, used in theory, represents positive emotion, engagement, relationships, meaning and accomplishment. According to Martin Seligman who developed the theory, individuals must achieve the aforementioned five components to experience a healthy sense of well-being, satisfaction in life and find one’s true meaning (CFI Team, 2022). As defined in theory, positive emotion entails feeling good, savouring physical pleasures and being hopeful and optimistic about the future. On the other hand, engagement defines the experience in which an individual is physically, emotionally and mentally committed to deploying their skills, strengths and attention to fulfilling a specific task. The theory also defines relationships as essential in pursuing happiness and well-being. According to the theory, individuals seek to experience a sense of belonging, love, and attention from a specific group, including co-workers, friends and peers.
The fourth element of happiness and well-being, as defined by the theory, is meaning. For individuals to experience a sense of well-being, they must derive meaning and purpose from the activities that they engage in. The last element of happiness and well-being is an accomplishment that includes a sense of achievement, success and competence.
There are several merits and limitations of the PERMA model of well-being. When applied in the workplace, it can support the building of better relationships and improve the performance of employees. Besides, it can help prevent burnout among employees and identify key areas of their well-being that should be supported. Nevertheless, the theory has been criticised for identifying building blocks of well-being but failing to recommend how they can be implemented. Furthermore, physical well-being is neglected in theory.
Centeredness Theory (CT)
Centeredness Theory (CT) uses a systems approach to self-actualisation to explain how individuals can achieve higher well-being. According to the theory, individuals’ well-being is affected by different aspects of their lives, including their selves, work, family, relationships and community (Bloch-Jorgensen, Cilione, Yeung and Gatt, 2018). This theory may be used in the workplace to support individuals in establishing a balance between intrinsic self-generated goals and exogenous domains. Skills that can lead to improved well-being include being mindful and reflective, reframing stress and cultivating awareness.
The advantage of the theory is that, at its core, it emphasises the need to maximise pleasure and reduce pain to improve well-being. Similarly, the theory identifies five domains that one could use to drive well-being: family, relationships, work and community. Nevertheless, it is important to point out that the theory uses a psychological approach and disregards the physical aspects of employee well-being. These may include hygiene, work-life balance, physical activities and diet.
Challenges at Orchard Group
Orchard Group is experiencing the problem of high absenteeism. Employee absenteeism refers to the habitual absence of employees from work. Employee absenteeism has negative impacts on workplace productivity. In particular, frontline employees who are absent at Orchard Group imply that numerous processes in the organisation may stall. This also contributes to poor services and customer dissatisfaction. Similarly, assigning extra work to remain employees due to absences can decrease their motivation and performance. The leading causes of employee absenteeism are poor well-being with leading factors including family relayed issues, illnesses and stress.
High turnover at Orchard Group is a major concern. Numerous studies, including one by Holliday (2022), posit that the ideal employee turnover in organisations is 10%. Nevertheless, Orchard Group has over 33% in employee turnover. A high turnover in the organisation has several disadvantages, for example, it leads to the loss of talented staff, an increase in recruitment costs and disruption of a succession plan and organisational culture. Factors such as work environment, social relationships, job meaningless, and recognition which impact well-being, can be causes of turnover in the organisation.
Employee well-being relates to different aspects of an individual’s work-life, including their job, relationships, colleagues, work culture and expectations. It also defines the organisation’s responsibility to ensure employees are supported to improve their financial, social, emotional, environmental, mental, and physical wellness.
Employee well-being initiatives could be used to increase organisational performance at Orchard Group. Employee well-being is intrinsically linked to performance. As a result, higher employee well-being results in higher productivity. Orchard Group could identify personal challenges that employee face and which affect their performance at work and provide employee assistance programs. An employee assistance program that focuses on legal assistance, elder care services, health insurance, financial advice, and support can help alleviate employee stress, depression, and substance abuse, making them more productive at work.
Employee well-being programs may also be used to reduce the cost of recruitment and selection. The high turnover in the organisation implies that Orchard Group must conduct fresh recruitments, selection and training of new employees. With recruitment exercises being capital intensive, the Orchard Group must minimise costs that may reduce the organisation’s overall profitability. This may be achieved through a retention strategy such as implementing a training and career advancement opportunities. These opportunities communicate to workers that the organisation invests and cares about their personal and professional development which improves loyalty and organisational commitment and encourages retention.
Employee well-being initiatives are integral in promoting positive experiences, as described through the PERMA model of well-being. People professionals should design jobs that meet the skills, qualifications and capabilities of employees. This ensures they are engaged in their jobs and find a sense of meaning and purpose. It also translates to improved motivation, organisational citizenship and discretionary behaviours.
Reduced employee absenteeism rates
Well-being initiatives that could be implemented at Orchard Group may include offering employees’ manageable workloads and opportunities for flexible working schedules. This is crucial in ensuring employees do not experience burnout, balance their work responsibilities, and still take care of their personal and familial responsibilities. It also improves their physical, social and emotional health, reducing absenteeism rates.
Using PERMA Theory, people practice professionals can implement employee well-being initiatives to reduce the rate of turnover. For instance, Orchard Group could promote positive emotions in the organisation through the organisation’s culture. People practice professionals should inculcate a culture of respect, collaboration, gratitude and togetherness (CFI Team, 2022). Employee well-being initiatives such as training and development programs allow employees to develop a sense of belonging and loyalty and reduce their likelihood of leaving.
Attraction of talent
Employee well-being may improve the organisation’s branding in the labour market and enhance efforts to attract qualified staff at lower costs (Cemazar, 2020). Employees are attracted to organisations where they will feel valued and respected. An organisation implementing well-being initiatives executes a culture of respect and inclusivity which attracts qualified talent.
Implementing assistance programs by Orchard Group to support employees in addressing personal, financial, and emotional challenges would help reduce employee-related stress, illnesses and absenteeism which are hindrances to optimal employee performance. According to Morris (2022), employee well-being leads to a happier, satisfied workforce that is likely to deploy their skills, attention and strength in discharging their duties and enhances their creativity and innovation.
Centeredness Theory can be utilised to assess the benefits of well-being initiatives at Orchard Group. The theory recommends that employees should be supported in the five domains of their lives, self, relationships, community, work and family. Nevertheless, its only limitation is the failure to consider the personal factors that influence well-being. However, PERMA Theory, on the other hand, introduces the concept of positive emotions and work-life balance, which addresses the limitations of the Centeredness Theory.
AC 2.3 External and internal factors impacting Orchard Group including three areas the organisation should focus on.
Training and career development
Training and development significantly affect employee well-being. Employees who lack the relevant skills and competencies to do their job are likely to experience job dissatisfaction. In addition, employees unable to advance their careers perceive stagnation and are likely to experience poor well-being and be disengaged from work.
Employee recognition refers to the appreciation and acknowledgement extended to employees by employers for their contributions to the organisation (Reba, 2019). Recognition impacts how employees perceive themselves and their overall well-being since it influences positive emotions. For example, recognition allows employees to experience a sense of meaningfulness in their job. It also makes them feel valued in the organisation, which increases engagement.
People practice professionals are responsible for advocating for good people practices in an organisation that accommodates employee needs and contributes to achieving organisational goals. The work employees are allocated determines whether they experience work-life balance (Bloch-Jorgensen, Cilione, Yeung and Gatt, 2018).. Employees who are overworked and work long hours have a poor work-life balance, while those with flexible schedules have good health and well-being,
Employees who are poorly compensated and have no health or retirement plan experience a sense of financial insecurity. This can contribute to stress, depression and anxiety, which contributes to poor well-being. Besides, financial insecurity can be a cause of distraction for employees at orchard Group, thus leading to poor performance.
Three Top areas of well-being that Orchard Group should focus on
The physical well-being of employees
Physical well-being refers to being safe, in good health, and a balanced state of body and mind. Physical well-being transcends being free from illnesses and includes adopting healthy lifestyle choices. Orchard needs to promote the physical well-being of its employees. This is because it is associated with higher concentration levels, stigma performance and reduced stress. In addition, physical health is associated with a reduced number of sick days which would help in addressing the high absenteeism rates.
Financial wellness of employees
Financial well-being is where individuals can fully address their current and ongoing financial responsibilities. In addition, individuals with financial wellness feel secure about their future and have the flexibility to make choices that improve their happiness. Studies by Albrecht (2022) indicate that financial responsibilities are among the leading causes of employee stress and anxiety. Providing opportunities for employees to experience financial security can ensure Orchard Group employees alleviate stress and can focus more. Studies show that employees who receive financial support through pension plans and pay raises are 15 times more engaged (Albrecht, 2022). Besides, they feel happier, cared for and valued by the organisation, which improves motivation and loyalty.
Social wellness/well-being refers to the sense of inclusivity, belonging, and alignment with organisational values and the social interactions and relationships employees have in the workplace. Employees’ social interactions and relationships also impact their emotional, physical and mental health. For instance, good social relationships with co-workers inculcate a sense of belonging and become a source of social support. Furthermore, social well-being encompasses forming strong relationships that improve collaboration and camaraderie. It also positively impacts employee loyalty and retention as employees attach psychological value to their work. Studies by mayo clinic have also shown that social wellness helps in reducing stress, depression and high blood pressure (vintage fit, 2022).
AC 2.2 How well-being can be integrated with other areas of people’s practice
Social well-being can be integrated into other areas of people’s practices, such as human resource policy. For instance, Orchard Group could enlist the support of experts and professionals to design human resource policies that support employee diversity and inclusion in an organisation (Cookman and Young Whyte, 2020). This may include diversifying talent pools during recruitments and developing a culture where respect, justice, teamwork and collaboration are encouraged. Furthermore, social wellness can be improved by developing channels that employees can use to share their voices and contribute to different issues in the workplace. In addition, campaigns for raising awareness n how employees can cope with change and uncertainties, as well as counselling services, can help build institutional resilience necessary to support employees’ social well-being.
Physical well-being can be integrated into other people’s practices, such as job design, health, and safety. For instance, job design can reduce high-pressure working environment that aggravates the risk of employees developing stress, burnout, and ergonomic challenges that cause poor well-being and performance (Cookman and Young Whyte, 2020). Through job design, Jobs at Orchard Group can be designed to ensure employees work within the limits of working time regulations. Furthermore, job design can be leveraged to pride work-life balance through flexible work arrangements. Jobs can be designed to focus on outcomes rather than processes. As a result, employees can work when they feel most productive.
Furthermore, health and safety can impact employee well-being. Employees working in dirty working environments with poorly maintained equipment aggravate the risk of workplace-related accidents and affect employee morale. Regular risk assessments should be conducted in the workplace, and regular maintenance carried out. Employees should also be trained on workplace safety, thus reducing the probability of accidents.
Financial well-being may in integrated with reward practices at Orchard Group. To ensure employees have a sense of financial security, the organisation should regularly review employee pay and benefits and adjust them based on governed regulations, market rates and prevailing economic situations. In addition, financial benefits could be tied with performance through performance-based rewards. This ensures that as employees benefit from better pay and rewards, the organisation’s productivity also increases. Furthermore, Orchard Group could implement employee financial assistance programs where the employees are offered advice on financial decisions.
AC 3.1 Value existing organisational practices and whether they add value to achieving organisational needs.
Financial well-being improves employee performance and retention.
Financial well-being implemented in the organisation through reward programs can help improve employee performance and promote retention. According to Maslow’s hierarchy of needs, financial security under safety needs is a significant source of motivation for employees (Mcleod, 2022). Employees are more likely to perform better at work when they experience financial security and are happier in their jobs if they can freely make financial decisions and enjoy life. Similarly, the equity theory of motivation emphasises that employees are more satisfied and perform better at work when they receive rewards proportional to their contributions. As a result, providing reward opportunities such as better pay and reward bonus, retirement plans, and job security improves job satisfaction and motivation and encourages retention.
Physical well-being in reducing absenteeism
Promoting physical well-being at Orchard Group is an effective intervention to the high rates of employee absenteeism recorded. Employees with poor physical well-being are more likely to experience chronic illnesses such as heart disease and high blood pressure, and mental health challenges such as anxiety and depression (White, 2022). Nevertheless, by designing jobs that allow employees to experience work-life balance, employees experience better health outcomes which translate to better workplace productivity and decreased reports of absenteeism due to illnesses.
Social well-being enhancing resourcing decisions
Social well-being in the organisation has a direct implication on its resourcing decisions. Social wellness is crucial when building healthy, supportive relationships with others. In addition, creating a workplace that values inclusion and diversity enhances collaboration and fosters the development of positive working relationships (White, 2022). In addition, social wellness challenges and gym memberships offered to employees allow employees to participate in activities that improve their health while bonding together. The aforementioned ensures employees develop a sense of belonging among team members and loyalty towards the organisation, encouraging retention behaviour. Similarly, a positive work environment where employees feel supported can position Orchard Group as an employer of choice, making it easier to attract the best talents in the market to occupy critical roles.
Social wellness activity: peer-to-peer commendation
Peer-to-peer recognition, also referred to as social recognition, is a form of employee empowerment and acknowledgement of another’s performance at work (Cody, 2021). Orchard Group should make it a practice for employees to send social recognition to their peers in various forms, including emails and written messages. This should also be incorporated into the organisational culture to enhance competitiveness and collaboration and encourage a positive and inclusive workplace.
This activity requires no financial support from the organisation. Nevertheless, it will be important to identify individuals to lead the initiatives. Such individuals include line managers, team leaders, and human resource professionals who will raise awareness and encourage employees to acknowledge other people’s work.
Justification for selecting the initiative
Studies emphasise the relevance of social recognition programs in improving the social well-being of employees in the organisation. According to Lovett (2021), social recognition helps build stronger bonds among employees, reduces stress, boosts employee confidence and establishes psychological safety across the organisation. It also improves job satisfaction and promotes retention. For example, a study by LinkedIn shows that employees who are recognised for their work have a retention rate of 96% (Lovett, 2021).
Timescale for delivery
Employees will acknowledge each other’s work every quarter.
Physical wellness activity: Flexible working hours
Flexible working arrangements refer to alternative forms of arrangements away from the traditional work week. (Talentlyft, 2022) In the traditional working day and week, employees must physically appear at work for five days between 9 am and 5 pm. On the other hand, with a flexible schedule, employees are allowed to start and finish their workday as preferred. As a result, employees can come to work early and leave earlier.
Implementation of the activity requires financial and policy support. For example, organisational design professionals must be engaged to ensure the flexible work policy does not compromise the quality of work provided or lower customer satisfaction.
Justification for selecting the initiative
A flexible working policy allows employees to balance their work and personal responsibilities. As a result, they experience less stress, burnout and health complications, improving their performance. In addition, the initiative improves employee job satisfaction by providing them control over time and promotes retention (Talentlyft, 2022). Furthermore, flexible working schedules are becoming increasingly important to job seekers. As a result, employers offering this initiative can attract the best talent.
Timescale for delivery
The activity will be implemented from November 2022 after stakeholder involvement.
Financial wellness activity: Pension Plan
The activity is the form of a pension plan where the employer, on behalf of the employee, makes regular (monthly) contributions to a pension fund for use when eligible for retirement.
The required resources to implement the activity entail paying 3% of employees’ qualifying earnings to the pension scheme and optional employer contributions and ensuring the funds are remitted monthly.
Justification for selecting the initiative
Studies by Ahmed, Abayomi and Nureni (2016) confirm that pension plans directly correlate with employees’ financial security. Employees with a pension feel less secure about their future financial security and are more likely to be more focused and committed at work than those without a pension plan. Similarly, a pension plan positively impacts employee morale and organisational commitment. Employees with a pension plan are more motivated at work, loyal to the organisation, and less likely to leave.
Timescale for delivery
The activity will be implemented in December 2022 following stakeholder consultation.
Assessing activity concerning management and stakeholder expectation
Before implementing the activities, it is important to ensure that it is in line with the management expectations and stakeholders’ interests. As a consequence, project managers should seek the support of the managers and leaders by informing them of the nature of the activity and how its benefits employees and the organisation. Besides, by engaging managers and leaders, a project manager can request information or other assistance required to make the project successful. From the case study, the project manager can explain to senior leaders and managers how physical, social and financial wellness can help to address high absenteeism, turnover and poor performance.
Communication and justification of programme
The project manager should communicate to employees to scope and benefits of the physical, social and psychological wellness initiatives (McGurgan, 2022). For instance, the project manager could explain that the flexible working initiative could enhance employees’ physical wellness and improve job satisfaction. The project manager could also emphasise that the social recognition program will foster the growth of healthy relationships at work and collaboration and ensure individuals have a source of social support. Besides, the pension plan will improve financial security. One- on one conversation with employees who are reluctant to embrace the activity could also help in establishing buy-in. Furthermore, schedules for implementation of the program, including those responsible for implementation, should then be identified and communicated.
Gathering of feedback
Professionals should seek feedback from employees regarding wellness initiatives. For more accurate data, the activities could be tested in select departments, and employees and managers requested to share their experiences. Furthermore, focus groups, one-on-one conversations and satisfaction surveys could be used to gather feedback. This is crucial in ensuring employee interests are catered for, and problems are identified early.
Adoption and evaluation of the initiative
The last stage is the adoption and implementation of the initiatives (McGurgan, 2022). Evaluation is then done where reports outlining how it performed agent projected targets, budget and timelines. Applicable data on areas that should be improved in the future should be identified.
Involving key stakeholders when implementing wellness initiatives is important in ensuring their success (McGurgan, 2022). It ensures that the initiative to be implemented reflects the needs and priorities of employees, improves accountability, promotes transparency and increases ownership by the stakeholders. There are several stakeholders that should be engaged when implementing the initiatives; these include organisational leaders, line managers, finance professionals, and organisational design professionals.
Line managers are important stakeholders who should be engaged by organising focus groups to determine the merits of the activities and how to implement the. Line managers have a good understanding of employee needs and preferences in charge of employee management. In addition, they have invaluable information on how to improve employee motivation and reduce resistance.
Organisation design professionals should also be engaged. Organisational design professionals are stakeholders responsible for designing roles, processes and structures developed to achieve organisational goals and objectives. They will be engaged to offer advice and direct the process of creating new flexible working schedules.
Employees, who will be the prime beneficiaries of the activities, will also be engaged through employee engagement surveys, team meetings, interviews and focus groups. Employees will offer their insights and opinions and how the projects will be customised to satisfy their needs and preferences.
Engagement surveys and performance monitoring will be used to evaluate the pension plan. Engagement surveys open the line of communication in the organisation and enable the gathering of honest feedback that can give insights into new problems and solutions. Employee engagement surveys measure how m engaged and motivated employees are in the organisation. Positive feedback on employee motivation and satisfaction with work and organisation processes will indicate success.
Absenteeism length and rate- will be used to evaluate the effectiveness of the flexible working policy. The flexible working policy helps improve employees’ physical health, including eradicating stress, fatigue and work-related anxiety. Absenteeism is an effective indicator of the health of the workforce, a high absenteeism rate will indicate failure of the activity. A decrease in the current absenteeism rate at Orchard Group will indicate the activity’s success.
Staff turnover will be used to evaluate the effectiveness of the employee social recognition program and the pension plan. A key benefit of measuring turnover is that it is a reliable indicator of the dynamism and vitality of organisational policies (Vulpen, 2022). A decrease in turnover from the current 33% will be a success, while an increase will indicate failure. A pension plan and social recognition program improve job satisfaction and organisational commitment and create a positive work environment. Employees also develop a sense of belonging and loyalty hence retention.
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