Importance Of Formal Travel Policy
A benefit to implementing a formal travel policy is that the solution results in the greatest likelihood that employees will not perceive Joe’s travel spending negatively anymore. The negative perception is derived primarily from a sense of inequities. In a study on formal and informal policies, participants indicated that “important functions of policies should be to (a) protect employees, (b) develop a sense of fairness across employees, and (c) create efficiency in the sense that a manager would not have to address the same …show more content…
Implementing a travel policy involves multiple steps, ranging from development, communication, measurement, and enforcement (Lang, 1993). These same steps relate to changing the compensation structure. Additionally, the steps for implementing both solutions should follow the Managerial Communication Model developed by Claude E. Shannon and William Weaver (1949), which includes nine components depicted through two layers.
The first step in implementing the desired solution is identifying the macro environment. The organizational culture already exists, and the majority of employees share the common belief that travel spending should be modest. The situational context in this instance involves a need that is pressing, as the travel spending of one individual is negatively affecting the morale of other employees. A situational factor surrounding the communication will be a superior-subordinate relationship as the changes are …show more content…
Research has found that a strong informal system is not sufficient to guarantee ethical decisions and behaviors, and that companies such as XYZ Corporation are more vulnerable to influences encouraging unethical behaviors when there are not formal policies and procedures in place (Falkenberg & Herremans, 1995).
Third, the incentive structure will work because it appeals to employees’ locusts of control, the sense of how much control one has over an outcome, and employees with an internal locus of control behave more ethically (Trevino & Youngblood, 1990). The incentive structure will work because employees’ actions will now directly affect their compensation.
Finally, the dual solution will work because it fills the void of two missing layers of the organizational culture. Trompenaars and Hampden-Turner (1998) propose three layers of culture: the outer layer, or observable reality; the middle layer, or group norms and values; and the core, or assumptions about existence. The middle layer has already been established, as the majority of the group thinks travel spending should be modest, as evidenced by their low morale in the wake of Joe’s excessive travel spending. The formal travel policy will become the outer layer, as written rules and guidelines will become observable reality. The incentive structure will become the core, and it will become the assumption that everyone’s travel spending is reasonable