The main objective of this thesis is to examine and evaluate the loyalty of a group of employees in a Danish municipality. Employee loyalty is defined in terms of various courses of action and ways of thinking, such as remaining with the organisation, offering suggestions for improvements and collaboration between colleagues. My motivation behind this thesis is an interest in the relationship between employee loyalty and a) leadership style and b) personnel policy, and in that connection finding out if it is possible for leaders to affect the loyalty of their employees. The problem formulation for the thesis is: How and to what extent is employee loyalty in “Institutions- og Skolecentret” (Child Care and School Centre) affected by its leadership styles and personnel policy, and how can leaders gain influence on the employees’ loyalty through their leadership style? The case company of the thesis is “Institutions- og Skolecentret” which is part of the Danish municipality Høje Taastrup. The Centre employs 12 people: the head of centre, an assistant manager, and 10 administrative employees. The head of centre exercises a leadership style focused on involving employees in decisionmaking, inviting criticism, and encouraging a high degree of self-management. The thesis examines whether these elements in the style of leadership have a positive or negative effect on employee loyalty, and goes on to look at other leadership/management styles in the organisation to see if there is a connection between leadership styles at other levels and employee loyalty. In 2007, it was decided that the municipality should have a value-based personnel policy. The aim of the policy was to limit the use of rules and enhance individuality in order to improve elements of loyalty such as motivation, commitment and job satisfaction. The thesis examines whether the employees act in accordance with the values, and whether the focus on values has had an impact on the loyalty of the employees. Hertzberg’s motivation theory is tested to see if the value-based personnel policy complies with the motivation factors. Thereafter the employee benefits are analysed to see if they comply with Hertzberg’s hygiene factors, and whether they satisfy employee needs and enhance loyalty. The final part of the analysis examines the leader’s prerequisites, options and opportunities to influence employee loyalty through their way of leading the group. The findings of this thesis will hopefully serve as inspiration to how employee loyalty can be gained and maintained. Furthermore, the findings should function as an eye-opener with regard to the factors that actually foster and maintain employee loyalty. The survey shows that both the leadership style and the employees’ relationship with their immediate superior play a key role in regard to their loyalty, so there is good reason for maintaining this leadership style in the future. However, the top management’s managerial style does not in itself affect employee loyalty, but the overall policy of the municipality, defined by the top management does. The value-based personnel policy is also a key factor because it enables self-management and reduces control, both of which are appreciated by the employees. However, the municipality’s focus on employee benefits does not enhance loyalty in the centre and some of the employee benefits are not even considered benefits, but necessary for the work. These findings question the use of employee benefits as a tool for creating loyalty. The analysis shows the importance of distinguishing between real benefits and necessary benefits, and it is the latter which should be a focus in the organisation in its attempt to gain and maintain employee loyalty.
|Educations||MA in International Business Communication (Intercultural Marketing), (Graduate Programme) Final Thesis|
|Number of pages||85|