The
antagonists of workplace environment betterment usually cite costs to companies
due to creation of additional facilities. (Mayo,
1945) But if you look at the facilities that are required by workplace
environment, they are intangibles. Attitudinal changes and communication
betterment won’t cost you anything(Yorks
& Whitsett, 1985).A few of the facilities like the recreational equipment
and facilities for women may cost a bit, but it is not substantial. One problem
with the workplace economics is that the investment is partly tangible but the
return is totally intangible. Economics in traditional sense speaks of tangible
investment and return. But economics at workplace cannot be discussed in
traditional sense. When the employees’ morale is high due to better work place
environment and results in increased productivity, people refuse to admit and
recognize the correlation and try to ascribe extraneous contribution to
increased productivity. But if you observe companies like Google, you can
understand the contribution and importance of workplace environment for
company’s growth. These companies provide all types of recreational facilities
and even free food to their employees. These freebies do not cost much to the
company ,but win a lot of loyalty and motivation from Employees .That is why, even
during the times when other companies are reeling under the onslaught of
attrition, companies like Google remain unaffected. (“Five realities of Google or any other Workplace Wonderland”,2008).
Economics is very important at
workplace and has serious implications for the same. But it is not economics in
the traditional sense where you invest something and reap some benefit. In
traditional sense, your investments as well as returns are intangible. But
economics of workplace is different. Here you invest in something which is not
connected to your business. The result is intangible and is again not connected
to business. The benefit from the return accrues in full to the business in a
way that you don’t see it directly but only can feel it. (Roethlisberger, 1941).
An example similar to this can be
drawn even from traditional economies. When your company maintains high quality
in products and integrity in business, it builds up a reputation and over a
period evolves into a brand value, which in modern times commands a huge value.
It takes some pains to maintain quality in products and business integrity and
it may involve some expenditure. But you don’t go back and make the investment.
The result is a brand value which is intangible but commands a value. Investment
in workplace environment improvement can be compared to an effort to build
brand value.
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