CHAPTER 2

LITERATURE REVIEW

New employee orientation typically begin after a newcomer entered a company, usually includes the information on employee’s benefits, policy, career plan, culture, working skill, etc. There is not extensive academic research on new employee orientation. All the details about literature review will be talk in followings.

1. Concept of New Employee Orientation program Some related knowledge about NEO will be reviewed in next parts in order to understand NEO more accurately and connect these theories with the practice of Thai and foreign companies in Bangkok and Rayong province. 1.1 The definition of New Employee Orientation (NEO) Orientation is a process to provide new employees the basic background information about the organization and acquaint new employees with the organization, typically includes the information on employees’ benefits, personnel policies, the daily routine, location of the company cafeteria, career path, organization operation and safety measures and regulations as well as the facilities tour to settle down quickly and start work. (http://work911.com/articles/orient.htm) In other words, induction or orientation is the process through which a new employee is introduced to the job and the organization. NEO is the first important step in the process of human resource management. It involves familiarization of the newly appointed employees to the work environment of the organization as well as to the fellow employees (http://business.gov.in/manage_business/orientation.php#top). NEO is a socializing process by which the organization seeks to make an individual its agent for the achievement of its objectives. The new employees should be oriented to the organization and to its policies, rules and regulations. According to McGillicuddy (1999) said “one of the first and most lasting impression new employees have of their employers is how they are greeted and treated on their first day work” however unlike realistic job previews, which affect primarily the anticipatory stage of socialization, employee orientation programs focus on the encounter stage of socialization, which is the period during which the new comer finds out what the job and life in the organization really like (Werner &DeSimone, 2009) 1.2 Significance and importance of NEO Nowadays, more and more enterprise noticed the importance of NEO, and many large companies such as Disney, Texas Instruments, and Corning Glass are do

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very good job in NEO.(Ron, 2003) A effective employee orientation program can help the new employee adjust themselves into the new job quickly so that to reduce turnover rate, it also can create success career because of new employee known what they need to do, how to do, and where they will go in the future clearly since the first day they enter an company. A good orientation program can removes fears. A newcomer steps into an organization as a stranger. He is new to the people, workplace and work environment. He is not very sure about what he is supposed to do. Induction helps a new employee overcome such fears and perform better on the job It assists him in knowing more about: 1. The job, its content, policies, rules and regulations. 2. The people with whom he is supposed to interact. . 3. The terms and conditions of employment. A good orientation program can create a good impression. Another purpose of induction is to make the newcomer feel at home and develop a sense of pride in the organization. NEO helps him to: 1. Adjust and adapt to new demands of the job. 2. Get along with people. 3. Get off to a good start. Through induction, a new recruit is able to see more clearly as to what he is supposed to do, how good the colleagues are, how important is the job, etc. He can pose questions and seek clarifications on issues relating to his job. Induction is a positive step, in the sense; it leaves a good impression about the company and the people working there in the minds of new recruits. They begin to take pride in their work and are more committed to their jobs. A good orientation program can act as a valuable source of information. Induction serves as a valuable source of information to new recruits. It classifies many things through employee manuals/handbook. Informal discussions with colleagues may also clear the fog surrounding certain issues. The basic purpose of NEO is to communicate specific job requirements to the employee, put him at ease and make him feel confident about his abilities. In a word, the success of orientation has significant outcomes that are important to both the new employees and an organization.

2. Models of NEO programs New Employee Orientation is only the beginning of a learning process, there are two models are very popular in NEO field. 1. A timetable of events for corning's orientation program Material Distribution As soon as possible after a hiring decision is made, orientation material is distributed.

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The new person’s supervisor gets a pamphlet titled A Guide for Supervisors The new person gets an orientation plan The pre-Arrival Period During this period the supervisor maintains contact with the new person ,helps with hosing problems ,designs the job and makes a preliminary MBO (management by objective )list after discussing this with the new person ,gets the office already ,notifies the organization that this has been done ,and sets the interview schedule . The first day

On this important day, new employees have breakfast with their supervisors, go through processing in the personnel department, attend a Corning and You seminar, have lunch with the seminar leader, read the workbook for new employees, receive a tour of building, and are introduced to coworkers. The first week During this week ,the new employee (1)has one-on-one interviews with his or her supervisor ,coworkers ,and specialists ;(2)learns the “how-to, where, and whys “connected with the job ;(3)answers questions in the workbook ;(4)gets settled in the community ;and (5)participates with the supervisor in firming up the MBO plan . 1. The second week The new person begins regular assignments. 2. The third week and fourth weeks The new person attends a community seminar and an employee benefits seminar (a spouse or guest may be invited) 3. The second through the fifth month During this period, assignments are intensified and new people have biweekly progress reviews with their supervisors, attend six 2-hour seminars at intervals (on quality and productivity, technology, performance management and salaried compensation plans, financial and strategic management, employee relations and Equal Employee Opportunity (EEO), and social change), answer workbook questions about each seminar, and interview answers with their supervisors. 4. The six month The new employee completes the workbook questions, reviews the Manage by Objective (MBO) list with the supervisor, participates in a performance review with the supervisor, receives a certification of completion for phase∣orientation, and make plans for phase Ⅱorientation. The seventh trough the fifteenth month This period of features phase Ⅱ orientation: division orientation, function orientation, education programs, MBO reviews, performance reviews, and salary reviews. (E. JMcGarrell, 2005) 2. Items for an orientation packet (Walter, 1990) 2.1 copy of specific job goals and descriptions 2.2 copies of performance appraisal forms, dates of appraisals, and

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appraisal procedures 2.3 list of on-the-job training opportunities 2.4 detailed outline of emergency and accident-prevention procedures 2.5 copy of policy book 2.6 telephone number and locations of key personnel and operations 2.7 current organization chart 2.8 map of facility 2.9 list of key terms unique to the industry ,company ,and/or job 2.10 copy of union contract 2.11 list of holidays 2.12 list of employee benefits 2.12 copies of other required forms (e.g. supply requisition and expense reimbursement ) 2.13 source of information 2.14 copy of each important organization publication 2.15 copies of insurance plans

3. Related research on NEO Orientation programs are distinguished from socialization, Psychological contracts, training, and realistic job previews (RJPs). New employee orientation programs are commonplace in business, education, and the military (Arthur Sherman, George Bohlander &Scott Snell, 2002).The degree of socialization was measured using six scales developed by Georgia Chao and colleagues. These measures were taken for group both before and after training group went through orientation (this is a pretest –post –test with control research design). Statistically significant differences were found between those who attended orientation and those who did not. Three hypothesized measures: goals /values and history. Additionally, those going through orientation also reported higher scores on the “people” scale and felt more of an emotional commitment to the university ,and this be attributed to the changes that occurred in their socialization scores over time. When there were some limitations to this study, it remains a noteworthy example of efforts to link the research on socialization with a practical orientation program. More efforts needed on blending research and practice, especially to improve orientation programs and how they are evaluated. (Klein & Weaver, 2000) One of the most important elements of an effective orientation experience is frequent interaction between newcomers and their supervisors, coworkers, and other organization members. Aron Reichers suggests that these interactions are the primary vehicle through which socialization occurs, because it is these insiders who can provide newcomers with mush of information they need to make sense of an organization. Furthermore, this information was correlated with newcomer attitudes (job satisfaction, organization commitment, and intention to stay. The supervisor plays

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a role as both the information source and a guide for the new employee. Newcomers interact with coworker like the providing of support, information, and training is also particularly helpful. The primary role of HRD staff in new employee orientation is to design and oversee the program. The newcomers themselves should be encouraged to play the lead role in the orientation process by being an active learner. A study investigates orientation, job satisfaction, and job performance of new extension personnel in Missouri done by Mnyau, Waziri Nahonyo. The non-random sample included 86 of 97 new personnel in Missouri with one to four years experience were chosen .they send the he Minnesota Satisfaction Questionnaire and the Orientation Program effectiveness to the participates , Job performance was obtained by using job performance records. The results show that (1) Orientation is more important to employees of an organization, like the cooperative extension service, than has previously been recognized. (2) Those individuals who were highly satisfied, and who rated their orientation program high and more important, had high performance ratings. (3) Higher job satisfaction can lead to higher job performance. (4) Hiring of more mature individuals in the Missouri Cooperative Extension Service may lead to higher job satisfaction and better job performance. (5) The program is more effective in some subject categories in the Missouri Cooperative Extension Service than others. (Mnyau, & Wazirinahony ,1985) Another study examine the relationship between an orientation to entry level coal mining occupations training program, and the development of positive attitudes toward one's self. The sample drawn from forty people, two groups, the first twenty women who met the screening criteria were labeled Group I and the second twenty women who met the screening criteria were labeled Group II. The treatment was randomly assigned to Group I, which comprised the Experimental Group. Group II was then labeled the Control Group. Statistical analysis did not reveal a significant difference between the scores of the group ∣ and group Ⅱ. Recommendations based upon the findings of the study are: (1) the orientation training should be conducted in a genuine or simulated coal mine, (2) the content of the training program should be administered over a longer period of time, and (3) the content of the training program should be updated frequently in order to apprise beginning employees to new federal regulations and new technology that affect the coal mining industry. (Hazel C, 1980) Hellman (2000) studied whether new employee orientation process has an effect on newcomer’s organizational commitment. Two group of employee were surveyed: one group having attended the comprehensive new employee orientation, another group didn’t. The organizational commitment questionnaire (OCQ) developed by Mowday, Steers and Porter were used. In addition, other question also asked to learn perception of newcomer about their orientation program .Demographic information gathered from two hundred thirty two respondents .The result of this study did not support the hypothesis that a formal orientation process would result in higher organizational commitment. However, there were higher organizational

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commitments for newcomer who attend the formal orientation during their first sixty days. The study reveals that the level of organizational commitment will decline in newcomers during their first ten month. Both practice and recommendation presented that newcomer feel more positive to their employer if newcomer participate formal employee orientation process. Wiilliams (2004) did a research to examine the effectiveness of online orientation paired with a peer mentor system on new employee commitment to the organization and the organization’s retention rate. Participants in the research included 243 new employees who worked for Royal Bank of Canada (RBC) central. The result shows that employee orientation mode had the most significant impact on organizational commitment and no impact on retention. (Wiilliams, 2004) Jennifer (2000) indentified a three level hierarchy of orientation needs. He found that the lowest level of hierarchy is defined as job issues. The middle level is related to the employee’s workgroup, division, or unit. The top level addresses organization issues. The most critical aspects is the understanding of corporate values that give the employee a sense of belonging in the organization and built commitment. A study reported by Kaiser (2006) focus on relationship between New Employee Orientation and training programs and employee retention rates .A 20 question web-based survey distributed to the 7,700 members of a Wisconsin Professional Council ,318 people chosen to participate. There are some of his results. For whether one company provided New Employee Orientation program for new employees. Most participates (n=311) choose yes, while only mere 2.2% (n=7) choose no. The result shows there are three components spend much of time during NEO process: “safety procedures “, followed by “completion of HR paperwork and form” and “tour of organization and department” When comes to the format used to presented, “Training-the-Trainer” was chosen by 48.5% (n=115), “PowerPoint presentation” was chosen by 75.9 %( n=180), “lecture” was chosen by 70.0 %( n=166), and “mentoring” was chosen by 55.3 %( n=131). The most frequently chosen format was “on-the-job training”, this was choose by 82.7% (n=196) of the participants. At the same time, “on-site” was the most frequency chosen with 98.3% (n=233) for training location, “off-site was chosen by 40.5% (n=96) participants, only 92 participants (38.8%) reported conducting training online. To the researcher’s surprise that no significance was found between turnover rate and NEO.