Chapter 10 Employee Separation and Retention McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill...
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Transcript of Chapter 10 Employee Separation and Retention McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill...
Chapter 10Employee Separation and
Retention
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Human Resource Management:Gaining a Competitive Advantage
Learning Objectives
Distinguish between involuntary and voluntary turnover and discuss how each can be leveraged for competitive advantage.
List and apply major elements that contribute to the perception of justice to discipline and dismissal.
Specify the relationship between job satisfaction and job withdrawal and identify sources of job satisfaction.
Design and use a survey feedback intervention program to promote retention of key personnel.
10-2
Introduction
To compete, organizations must ensure: Good performers are motivated to stay. Chronically low performers are allowed, encouraged or if necessary, forced to leave.
2 Types of Turnover: Involuntary turnover—initiated by the organization(often among those who would prefer to stay). Voluntary turnover—initiated by employee(often those the company would prefer to keep).
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Managing Involuntary Turnover
Employment-at-will doctrine- in the absence of a specific contract, either an employer or employee could sever the employment relationship at any time (the employee can be fired for any reason or no reason at all).
Violence in the workplace caused by involuntary turnover has become a major organizational problem.
A standardized, systematic approach to discipline and discharge is necessary.
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Managing Involuntary Turnover – Wrongful Discharge
If employees are covered by a contract (individual or collective bargaining), they can only be discharged for cause
Wrongful Discharge Suits1. Violation of an implied contract or covenant (unfair
action by employer)2. Violation of public policy (terminated for refusal to
do something illegal, unethical, or unsafe3. Statutory violations (employment discrimination)4. Whistle blower suits – only apply in
certain federal cases and in some states
McGraw-Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved
McGraw-Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved
Wrongful termination suits can be difficult for the employee to win, and expensive for the employer to defend
Principles of Justice
Outcome fairness-the judgement that people make regarding outcomes received relative to outcomes received by others with whom they identify.
Procedural justice- focuses on methods used to determine the outcomes received.
Interactional justice- the interpersonal nature of how the outcomes were implemented.
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McGraw-Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved
Determinants of Procedural Justice
4 Determinants of Interactional Justice
1. Explanation – emphasize procedure justifying decision
3. Consideration – listen to concerns
2. Social Sensitivity – treat with dignity and respect
4. Empathy – identify with feelings
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Employee Assistance Programs
EAPs attempt to ameliorate problems encountered by workers who are drug dependent, alcoholic, or psychologically troubled. EAPs are usually identified in official
documents published by the employer.
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Outplacement Counseling
Helps displaced employees manage the transition from one job to another.
Services such as job search support, résumé critiques, job interviewing training and networking opportunities may be provided in-house or through an outside source.
Aimed at helping people realize that other opportunities exist.
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Managing Voluntary Turnover – Job Withdrawal
Progression of Withdrawal Theory-dissatisfied individuals enact a set of behaviors in succession to avoid their work situation.
3 categories:1. behavior change2. physical job withdraw3. psychological job withdraw
Withdrawal behaviors are related to one another, and partially caused by job dissatisfaction.
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Job Dissatisfaction-Job Withdrawal Process
Causes - Job dissatisfaction
- Personal disposition- Tasks & roles- Supervisors& coworkers- Pay&benefits
Manifestations -job withdrawal
- Behavioral change- Physical job withdrawal- Psychological job withdrawal
JobDissatisfaction
JobWithdrawal
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Behavior Change
An employee's first response to dissatisfaction would be to try to change conditions that generate dissatisfaction.
When employees are unionized, dissatisfaction leads to increased grievances.
Employees sometimes initiate change through whistle-blowing-making grievances public by going to the media or government.
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Physical Withdrawal
4 ways a dissatisfied worker can physically withdraw from the organization:
1. Leave the job2. Internal transfer3. Absenteeism4. Tardiness
Companies spend 15 % of payroll costs to make up for absent workers on average.
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Job Satisfaction and Job Withdrawal
Job satisfaction is a pleasurable feeling that results from the perception that one's job fulfills one's important job values.
3 aspects of job satisfaction: 1. Values – what a person consciously or
unconsciously desires to obtain2. Importance of values (personal utility)3. Perceptions – depend upon frame of reference
(standard of comparison with others)
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Pay andBenefits
Tasks andRoles
Sources of Job
Dissatisfaction
Personal Dispositions
Unsafe Working
Conditions
Supervisors and
Coworkers
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Unsafe Working Conditions
Each employee has a right to safe working conditions under the Occupational Safe and Health Act of 1970 (OSHA).
Financial bonuses linked to specific safety related goals help keep employees focused and pay for themselves over time.
Firms that emphasize safety send workers a clear signal that they care about them. 10-21
Sources of Job Dissatisfaction
Personal Dispositions Negative affectivity is a dispositional dimension
that reflects pervasive individual differences in satisfaction with any and all aspects of life.
Tasks and Roles The nature of the task itself is the key predictor of
job dissatisfaction. Job Rotation – systematically moving the
worker from one job to another Pro-social Motivation – where jobs help
others, the job itself often motivates the employees
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Sources of Job Satisfaction
Supervisors and Coworkers A person may be satisfied with his or her
supervisor and coworkers due to:shared values, attitudes, and philosophies,strong social support
Pay and Benefits Pay is a reflection of self-worth, so pay
satisfaction is significant when it comes to retention.
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Standardized Job Satisfaction Scale
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Survey Feedback Interventions
Surveys: emphasize overall satisfaction. assess the impact of policy changes. allow the company to compare itself with others in
the same industry. allow the company to check for differences
between units and benchmark “best practices.”
If people fail to see timely actions taken on matters identified as problems in the survey, satisfaction is likely to be lower than it would be in the absence of a survey.
Any strategic retention policy has to consider surveying people who are about to become ex-employees.
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Summary
Involuntary turnover reflects a separation initiated by the organization.
Voluntary turnover reflects a separation initiated by the individual. It can be minimized by measuring, monitoring and surveying, then addressing problems found in the surveys.
Organizations can gain competitive advantage by strategically managing the separation process.
Retaliatory reactions to organizational discipline and dismissal decisions can be minimized.
10-26