Counter Productivity
Counter Productivity
Counter Productivity
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COUNTERPRODUCTIVE BEHAVIOR
AND EMPLOYEE DISCIPLINE
*published in "Understanding the Filipino Worker and Organization (2nd ed)" by M.R. Hechanova, M. Teng-Calleja, and
V. Villaluz (2017, pp.176-193), printed by the Ateneo de Manila University Press in Quezon City, Philippines
EMPLOYEES ARE IMPORTANT for the success of organizations. They perform jobs as
required of them, sometimes work beyond what is expected to support institutional goals,
and even actively seek ways of improving systems and processes. However, there are times
when employees behave in ways that seem inappropriate or that go against the goals of the
organization. These actions may involve behaviors damaging to inter-employee
relationships, organizational productivity, efficiency, or even company image. These may
even include actions detrimental to themselves.
This chapter reviews both Western and Philippine studies that examine the array of
counterproductive behaviors observed in organizations. In doing so, it aims to clarify the
differences between the Western and Philippine understanding of these behaviors, exploring
ways these may be effectively dealt with and managed by organizations.
Counterproductive behaviors have been defined as behaviors that explicitly run counter
to the goals of an organization (Jex 2002). The most commonly studied counterproductive
behaviors have been tardiness and absenteeism and their impact on organizational
commitment and withdrawal (Shapira-Lishchinsky and Even-Zohar 2011); alcoholism and
its relationship with increased absence from work (Bacharach, Bamberger and Biron 2010);
and the effect of substance abuse on work performance and increasing antagonistic
behaviors (Jex 2002).
Other forms of counterproductive behavior include gambling in the workplace (such as
using the internet to gamble), its financial, legal, and psychosocial consequences on the
employee, and the adverse effects on the workplace (Nower 2003); as well as how
employees plan and commit theft (Iboro 2011). Recently, Western literature began to focus
on less common counterproductive behaviors, such as gossiping and its impact on
organizational influence (Labianca, Grosser, and Lopez-Kidwell 2010) and on the dynamics
of organizational power (Clegg and van Iterson 2009). Another is racial discrimination and
how it affects supervisor satisfaction and the perceived organizational tolerance of
discrimination (Buchanan and Fitzgerald 2008).
Other topics related to counterproductive behaviors include sexual harassment and how
it is related to gender and ethnicity (Bergman and Henning 1994), favoritism (Gomes,
Owens, and Morgan 2006) and the organization’s moral compass (O’Leary-Kelly and
Bowes-Sperry 2001); workplace bullying (Bashir and Hanif 2011); and even how red tape
alienates dysfunctional managers (DeHart-Davis and Pandey 2005).
Employee Turnover
According to the 2011 Labor Turnover Survey conducted among 700 large enterprises
in Metro Manila, turnover rate across industries is at 8.5 percent. However, the story is
different in the call center industry where about 27 percent of call center agents leave their
companies only after six months to a year of service.
Employee turnover remains a fundamental concern for organizations because of its
costs. Since an organization will have to rehire and retrain new employees to fill in a
position, turnover costs include lost productivity—what would have been productive time
had the employees not left the organization in the first place. New employees will also need
time to adjust to their work and to meet organizational standards and goals.
Predictors of Turnover. Although most organizations still assume that pay and benefits
are the keys to retaining employees, a local study conducted by Carbonell in 2008 found that
there are other factors that Filipino employees look for in their companies. The study
involved 1,678 employees including human resource managers, development
representatives, line managers, and rank-and-file employees from 60 different private
companies in Metro Manila and in nearby Export Processing Zones. It asked the participants
in the study to rank 20 factors in terms of importance to staying in an organization, and
which would predict the intent to quit. Of those factors, eight predicted the intention to quit:
quality of compensation package, quality of company vision/strategy, opportunity for
growth, internal politics or bureaucracy, the level of challenge in work, the amount of job
stress, the clarity of the link between pay and individual contributions, and the company’s
responsiveness to employee needs.
The results also showed that an employee’s age and position in the organization is an
added factor in staying or quitting—older Filipino employees tend to stay in the
organization. Managers also tend to stay longer than those in non-managerial roles.
Interestingly, the results showed that the top five retention factors that make employees
stay are: the level of cooperation within the organization, opportunities for growth and
enhancement, quality of the relationship with their respective supervisor or manager, quality
of the compensation package, and trust among employees. Of these five, three are relational
in nature: cooperation, supervisor or manager relationships, and trust between employees.
This echoes Jocano’s (1999) stipulation regarding the emphasis on smooth interpersonal
relationships within organizations. However, the study also shows that trust and cooperation
are not enough to retain employees. An employee’s intention to quit is also influenced by
their perceived opportunities for growth, advancement, and quality of compensation.
Another study identified work-life conflict as a predictor to turnover. A study conducted
among 337 customer service representatives in two call centers found that work-life conflict
is significant, albeit weakly correlated, to turnover intent. Although work-life conflict does
not differ according to gender, there appears to be differences according to age—younger
participants report greater work-life conflict compared to older workers. The top five
retention factors in this study were organizational growth, compensation, company
responsiveness to needs, work-life balance, and challenging work. It was also mentioned that
the less supportive an organization is perceived to be, the more likely that the employees will
intend to leave (Bacud 2005).
Turnover, Job Fit, and Organizational Commitment. A number of local studies have
found that other factors such as job fit and organizational commitment have a strong impact
on turnover. A study conducted among 140 employees of a multinational company in the
Philippines found that poor organizational commitment, job satisfaction, supervision, and
teamwork contribute to turnover intent. The study also found that teamwork, cooperation,
job satisfaction, and role clarity predict the organizational commitment of employees
(Lombos 2004).
Another study conducted among 556 workers from 25 different organizations showed
that demands-abilities fit (the match between the demands of work and the abilities of
employee) predicts job satisfaction and turnover intent—the more their individual abilities fit
into the organizational demands, the more employees will like their work (Castroverde
2006). To reduce turnover, there must be an increase in self-worth, competency, and
meaning in tasks required.
Burnout
Burnout is defined as “a syndrome of emotional exhaustion, depersonalization, and
reduced personal accomplishment” (Demerouti, Bakker, Nachreiner and Schaufeli 2001).
Intention to quit is high when employees feel too exhausted or burnt out from labor. There
are a number of variables found to influence burnout. For example, a study done by Cera
(2005) among 124 teachers found that educators’ experiences of emotional exhaustion are
negatively related to workload, control, reward, community, fairness, and values. This means
that these factors lead to varying levels of job burnout or emotional exhaustion, which
influence the teachers’ intention to quit.
Relational Aggression
Relational aggression is aggression demonstrated between groups or individuals with the
intention of destroying relationship structures in the organization. It can take the form of
verbal or non-verbal action meant to utilize sociability processes to create animosity. A
study done among college student trainees from various universities in Manila showed the
prevalence of rumors, silent treatment, and backstabbing as counterproductive relational
behaviors (Filho, Purunggan and Sanchez 2004).
Rumors
Spreading rumors can be either positive or negative. However, the majority of rumors
are typically negative, sometimes leaning on the offensive or the derogatory. These rumors
can range from valid and reliable facts, to false information aimed to destroy reputations.
The study affirmed that rumors can be a method of socialization into a particular social
environment. Rumors provide an avenue for members of groups to interact with each other.
The study found that the degree of social environment (familiarity of territory) and the
degree of friendship or camaraderie (familiarity of relationship) affect the likelihood of
rumors spreading. The more familiar one is with the social environment; the more likely
rumors will spread. Similarly, the more familiar people are with each other, the higher the
likelihood that rumors will occur. This is because of the principle that a rumor will have
credibility if it comes from someone the listener knows (Filho, Purunggan and Sanchez
2004).
Furthermore, rumors tend to be about acquaintances rather than about friends—the less
familiar someone is to an in-group, the higher the risk that rumors about that person will
spread. This may explain the propensity of employees to spread initial impressions and
assumptions about a new employee.
Silent Treatment
Another relational aggression behavior is silent treatment, or the exclusion of one’s
rivals, making sure that they are “out of the loop” and are thus less likely to influence agenda
(Jex 2002). By undercutting individuals and making sure that they are out of the group,
individuals affected by the silent treatment are ousted in social environments and are left to
work on their own. In a collectivist society such as the Philippines, this can be a painful
ordeal. According to the same study by Filho et al (2004), participants utilize silent treatment
depending on the type of social environment and the presence of other people.
Backstabbing
The study also looked at individuals who were the subject of rumors. They were
reported to have low sociability scores that may have led to little interaction with other
members of the organization. The participants also reported that they would engage more in
backstabbing individuals with high sociability. Since they cannot spread rumors because of
the lack of people who will listen, they end up demonstrating behaviors meant to sabotage
tasks or duties of the in-group. These behaviors can range from demeaning actions to
spreading of rumors to produce public shame.
Sexual Harassment
Considered one of the severe forms of counterproductive behavior, sexual harassment
takes on various forms: it can begin as cracking sexual jokes, sexual statements such as
sharing one’s sexual activities, passing notes with sexual innuendo, and can move on to
making sexual advances, asking for sexual favors, or even the extreme of touching oneself
sexually in front of the one being harassed. It not only affects the harasser, whose efforts to
harass another equates to lost productivity at work, but more importantly, it affects the
person harassed on all aspects (Hechanova and Sy 2007).
A study revealed that three-fourths of Philippine organizations do not have policies
regarding sexual harassment; among companies that have policies, not all employees are
aware of the policies’ existence (Hechanova and Sy 2007). However, the Republic Act 7877
of 1995 clearly stipulated that:
Such acts are penalized with imprisonment of one to six months, or fined between
P10,000 to P20,000, or both. Despite this legal protection, a study shows that two-thirds of
those who experience sexual harassment would do something about about it. Intended
actions range from confronting the perpetrator to filing lawsuits. Explicit harassment tends
to be more reported and rectified versus implied harassment. Men are less likely to report
harassment cases, and as for those women who are harassed, many tend not to complain
because of embarrassment (Hechanova and Sy 2007).
Discrimination
Discrimination is defined as “the applied prejudice in which negative social definitions
are translated into action” (Feagin and Eckberg 1980). Those perceived to have less
influence, power or authority in a social setting tend to be more prone to discrimination.
Discriminated individuals or groups may find restrictions to their privileges and rights.
Although there are numerous types of discrimination (such as race, gender, age, religion,
disability), the most common in the Philippine workplace appears to be related to gender,
gender identity, and school discrimination.
Gender Discrimination. One of the most common types of discrimination in
organizations is leveled against women workers. For instance, according to Bureau of Labor
and Employment Statistics released in 2011, the rate of unemployment for women in 2010 is
lower on the average compared to men. The labor market also continues to be segmented,
with more women working for wholesale and retail of household goods (60.1 percent),
hotels and restaurants (54 percent), financial intermediation organizations (56.5 percent), in
education (74.6 percent), in health and social work (71.6 percent), and in private household-
keeping with employed persons (84.4 percent). Discrepancies also abound in wages—in all
industries from professional work to clerical and service workers, farmers, fishers, traders,
and even plant and machine assemblers. Women have an average wage of P349.06 while
men enjoy an average wage of P412.62.
Edralin (2003) assessed the working conditions of women in the provinces of Cavite,
Laguna, Batangas, and Rizal in terms of (1) recruitment and selection, (2) working
conditions, (3) compensation, (4) development, (5) special working conditions, (6) health,
dental, and occupational safety, (7) labor relations, (8) post-employment, (9) the impact
of globalization on their socioeconomic life, and (10) the significant differences in their
situation based on the characteristics of their company. A total of 327 women workers
participated from 172 firms in the Philippine Economic Zone Authority. The study showed
that women felt discriminated against in terms of promotion. They perceived that
“connections” or a palakasan system was at play for promotions: men who knew people or
had connections with top management officials were the first who received raises or
increases in job levels. Women felt discriminated against because they lacked padrinos
(patrons) or were not favored by their supervisors (Edralin 2003). The women also
mentioned encountering various difficulties after promotion, especially concerning
competition and difficulty adjusting to environments when they were transferred. Similarly,
Lim and Hechanova (2008) examined the leadership stereotypes and discrimination against
women as perceived by Filipino managers. Results suggested that female managers
perceived that women are penalized more for mistakes than men, are excluded by men from
informal networks, and have a harder time finding mentors than men. On the other hand,
male managers felt that men are given more responsibilities than women in the same
position. Thus, with regards to organizational advancement, it appears that the glass ceiling
for women still prevails in certain industries in the Philippines.
Another type of discrimination that exists in Philippine organizations is against
homosexuals. A survey conducted in 2008 by Hechanova and Soriano showed that although
69 percent of heterosexual workers feel comfortable working with gays or lesbians, 31
percent are willing to do so as long as they act “straight” with them. The same study
revealed that although only 3 percent explicitly state that they do not want homosexuals in
their organization, 60 percent of the respondents will accept a homosexual into their
organization provided the applicant is very competent. Only 37 percent say sexual
preference is not an issue.
From the homosexuals’ point of view, a survey conducted in 2009 revealed that homo-
sexuals feel that “they do need to work harder to achieve the same things and are penalized
more for the same mistakes than straight people. When it comes to promotions, homosexuals
feel that they are not treated seriously and prioritized less as potential candidates compared
to straight people” (Concordia, Cortez, Panaligan and Velasco 2011). Given this fear of
discrimination towards sexual orientation, homosexuals report continuing to hide their true
orientation, which is physically, mentally, and emotionally exhausting. The study also
revealed that homosexuals who voluntarily disclosed their sexual orientation perceived less
discrimination than those who remained mum about their gender. However, this may reflect
the fact that homosexuals will tend to come out when they perceive their environment is
supportive (Concordia, Cortez, Panaligan and Velasco 2011).
Managing hotel operations and delivering excellent products and services to the guests is quite a
challenge. Whether they are business or leisure, budget or luxury travelers, guests expect to feel
special, to have their expectations met, and to have their experiences built around them. Imagine the
difficulties of having to deliver consistent and exceptional service 24/7. Even when policies,
procedures, standards, and work processes are in place, because employees are human, errors,
negligence, and inconsistency remain to be obstacles in running a 24/7 hotel operation.
Disciplinary Problems at Ditus Sapientia Holdings Corp.—Victoria Group of Companies
The Ditus Sapientia Holdings Corporation (DSI) runs the Victoria Group of Companies. To
ensure consistent service quality, it has a Code of Discipline that it implements consistently. In the
past five years, DSI has averaged more than 200 employee infractions on the company’s Code of
Discipline. This is more than half of the total population of the company.
The company had followed the traditional way of “correcting” these behavioral misdemeanors.
After conducting a thorough investigation and administrative hearing, an employee found guilty
received either written reprimands or suspension. The progressive approach usually started with an
oral warning, followed by a written warning, and if the problem continued, the supervisor suspended
the employee without pay. If the individual still did not correct the behavior, the possibility of
termination followed. Despite the use of the traditional progressive disciplinary action (DA) process,
DAs steadily increased and the DA process itself had been inherently distasteful to most employees.
Labor-Management Relations
Dealing with counterproductive behaviors needs to take into consideration governing
laws. Labor-management relations or LMR refers to the rules and policies that govern and
organize employment, how these are established and implemented, and how they affect the
needs and interests of employees and employers. The focus of LMR has broadened from the
formation and operation of national and local institutions and collective bargaining to
strategic human resource policies (Von Otter 2007). Disciplining and opposing
counterproductive behaviors, is hinged on rights of both employer and employees and should
be done within the limitations set by law.
Management has the legal right to:
1. Hire employees; as subjected to the limitations found in law, a collective bargaining
agreement and general principles of fair play and justice
2. Change the working hours of the employees; for the advancement of the employer’s
interest and not for the purpose of defeating the rights of the employees
3. Prescribe rules; as deemed necessary and proper for the conduct of its business and
to provide certain disciplinary measures in implementing these to assure that they
will be complied to. If the rules are violated, then management has the right to
discipline its employees.
4. Transfer or reassign employees provided there is no demotion in rank or a
diminution of salary, benefits and other privileges. The only time the employer
cannot exercise this right is where it is vitiated by improper motive and is merely a
disguised attempt to remove or punish the employee to be transferred.
5. Demote any employee provided it is not tainted with unfair labor practice.
Employees can be demoted, but without reduction in salary due to failure to observe
proper diligence at work, habitual tardiness or absences and indolence.
6. Dismiss an employee pursuant to company rules and regulations. This must be done
without abuse of discretion. Further, management is bound to exercise caution in
terminating employees especially when there is a labor union acting according to the
collective bargaining agreement. Legally, sources or grounds for employee
discipline and termination are Articles 282 to 284 of the Philippine Labor Code, the
contract that binds the employee-employer relationship, and the company rules.
Implications
This chapter shed light on various Western and Philippine studies on counterproductive
behaviors. It discussed common behaviors and conceptual differences between the literature:
Western studies have focused more on the individualistic practices of counter-productivity
while Filipino literature has stressed how social and interpersonal relationships come into
play. Philippine studies on job turnover and burnout, relational aggression, discrimination,
and sexual harassment were discussed, and a study conducted by the authors highlighted the
current trends in counterproductive behaviors. As previously mentioned, the prevalent
counterproductive behaviors in the Philippines are tardiness, absenteeism, gossiping,
accessing social networking sites, and favoritism in the workplace.
Although it may be impossible to totally eliminate counterproductive behaviors, there
are measures and interventions that organizations may take to decrease and discourage these
behaviors. Given the issues with tardiness and absenteeism, organizations may opt to explore
different types of work schedules for their employees, offering flextime or compressed work
schedules so employees can balance both work and family obligations. As for accessing
social networks and downloading various online paraphernalia, organizations can have
various websites and social networks blocked or password protected, preventing employees
from accessing them. As previously mentioned, installing closed circuit TV cameras
(CCTV) in the offices may also help decrease these behaviors. Gossiping and favoritism in
the workplace, however, are more difficult to handle, especially if already entrenched in the
organization’s culture. Having effective organizational communication strategies and a
competency-based promotions system may also help organizations manage
counterproductive behaviors.
The chapter ends with a discussion on how organizations deal with counterproductive
behaviors from a legal perspective. The legal rights of both employees and employers as
well as labor code provide limits on how counterproductive behaviors can be appropriately
addressed.
Discussion Questions:
1. Define counterproductive behavior and enumerate the factors that contribute to it.
2. Compare and contrast counterproductive behaviors in the Philippines and in the West.
What are common and what are unique to each group? Where does the difference stem
from?
3. In your current organization, what are the counterproductive behaviors present? What is
the impact on your organization?
4. Aside from those mentioned in the chapter, what are some other ways that aid
organizations in curbing counterproductive behavior?
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