Chapter One: Introduction

Recent research has shown that organizational climate or health is related to the organization's human resources practices and to specific organizational outcomes, such as customer satisfaction. ⁽¹⁾ An earlier study also showed that employee attitudes about various work environment issues were related to the organizations' level of employee turnover, financial performance, and customer satisfaction. ⁽²⁾ Researchers have made the link between certain types of socialization programs for new hires and the retention rate of those newcomers to the organization. ⁽³⁾ In addition, Griffeth and Hom, experts in the area of employee retention, compiled information from many studies showing that job enrichment and supportive supervision are related to reductions in the amount of unwanted employee turnover. ⁽⁴⁾ These findings account for why organizations have become more interested in assessing their own health or climate. It is no longer enough to just conduct employee satisfaction surveys. It is important to the organization's bottom line to know how the organization is doing in many areas and to continually work toward improvement.

1. Rogga, K., Schmidt, D., Shull, C., & Schmitt, N. (2001). Human resource practices, organizational climate, and customer satisfaction. Journal of Management.

2. Ryan, A. M., Schmit, M. J., & Johnson, R. (1996). Attitudes and effectiveness: examining relations at an organizational level. Personnel Psychology, 49, 853-882.

3. Ashforth, B. & Saks, A. (1996). Socialization tactics: longitudinal effects on newcomer adjustment. Academy of Management Journal, 39, 149-178.

4. Griffeth, R. & Hom, P. (2001). Retaining Valued Employees. Thousand Oaks, CA: Sage Publications.

As a result, this study was designed to ultimately provide information about the organizational health of the North Dakota Department of Transportation (NDDOT). Specific objectives for the study included the following.

• Quantify and qualify the scope and seriousness of the problem of voluntary turnover and employee motivation issues on a regional basis.
• Assess perceptions of NDDOT employees and managers regarding organizational health factors that can influence employee motivation and retention.
• Identify and evaluate suggestions for potentially improving retention and motivation among NDDOT employees.

The first step in the process was to collect background information and benchmarking data from other state departments of transportation (DOTs) in the Mountain Plains region. This was accomplished by conducting interviews with individuals from seven state DOTs. Once that information had been collected, the second phase of the project involved the development, distribution, and analysis of surveys completed by NDDOT employees and managers. The final step in the project was to gather more specific information about some issues highlighted in the surveys through focus group discussions. Each of the phases of the project will be described in greater detail in subsequent sections of this report.

The following sections of this report will describe the general methods and procedures utilized throughout the project, the specific data gathering techniques and results for each phase of the project, and the resulting summarized conclusions and recommendations for the NDDOT. Each of the specific phases of the project will be outlined separately in order to maintain the relatively independent nature of each of these steps in the process of completing this study.

Chapter Two: General Methodology

A technical advisory committee was created to provide guidance and technical assistance with the design and implementation of the study. The committee included nine individuals from the Federal Highway Administration, Eno Transportation Foundation, the NDDOT, and the New Mexico State Highway and Transportation Department.

The general methods used to accomplish the goals of this study were quite varied. Both qualitative and quantitative data-gathering techniques were employed. The specific methods utilized included individual interviews, organizational surveys, and focus group discussions.

The overall goal of the study was to examine organizational issues that affect employee motivation and retention. To obtain information about these issues that could be qualitatively analyzed and compared from state to state, we conducted face-to-face interviews with two or three individuals at the Minnesota, Iowa, North Dakota, South Dakota, Nebraska, Wyoming, and Montana DOTs. The results of these interviews were primarily used as background information for the subsequent steps of the study, which focused on organizational health in the NDDOT.

The second and third parts of the study included organization-wide surveys of managers and employees, and focus group discussions to follow up on the survey results. Surveys were developed to address general issues affecting motivation and retention, in addition to issues that were specific to the NDDOT. All NDDOT employees and managers were given surveys to complete in order to allow every NDDOT employee to express his or her opinions. Alternatively, the focus group discussions were designed to allow small groups of NDDOT employees and managers to clarify some information from the surveys and to suggest possible improvements for the organization.