Human Resource Management: Gaining a Competitive Advantage Chapter 10 Employee Separation and Retention McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies, Inc All rights reserved Learning Objectives Distinguish between involuntary and voluntary turnover and discuss how eachcan be leveraged for competitive advantage Listand apply major elements that contribute tothe perceptionof justiceto disciplineand 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 Types of Turnover: Involuntary turnover—initiated by the organization (often among thosewho would preferto stay) Voluntary turnover—initiated by employee (often those the company would prefer to keep) 10-3 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 Violence in the workplace caused by involuntary turnover has become a major organizational problem in recent years A standardized, systematic approach to discipline and discharge is necessary 10-4 Principles of Justice Outcome fairness-the judgement that people makeregarding outcomes receivedrelative to outcomes received by others with whom they identify Procedural justice- focuses on methods used to determine the outcomes received Interactional justice- refers to the interpersonal nature of how the outcomes were implemented 10-5 Progressive Discipline Components of Discipline Programs 10-6 Determinants of Interactional Justice 1 Explanation Explanation 2 Social Social sensitivity sensitivity 3 Consideration Consideration 4 Empathy Empathy 10-7 Stages of ADR Arbitration Mediation Peer Review Open Door Policy 10-8 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 There are several issues in controversy regarding EAPs 10-9 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 10-10 Managing Voluntary Turnover – Job Withdrawal Progression of Withdrawal Theory-dissatisfied individuals enact a set of behaviors in succession to avoid their work situation categories: behavior change physical job withdraw psychological job withdraw Withdrawal behaviors are related to one another, and partially caused by job dissatisfaction 10-11 Job Dissatisfaction- Job Withdrawal Process Causes Job dissatisfaction - Personal disposition - Tasks&roles - Supervisors& coworkers - Pay&benefits Job Dissatisfaction Manifestations job withdrawal - Behavioral change Job Withdrawal - Physical job withdrawal - Psychological job withdrawal 10-12 Behavior Change An employee's first response to dissatisfaction would be to try to changethe conditions that generate dissatisfaction When employees are unionized, dissatisfaction leads to an increased grievances Employees sometimes initiate change through whistle-blowing - making grievances public by going to the media or government 10-13 Physical Withdrawal ways a dissatisfied worker can physically withdrawal from the organization: Leave the job Internal transfer Absenteeism Tardiness Companies spend 15 %of payroll costs to make up for absent workers on average 10-14 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 aspects of job satisfaction: values perceptions Importance Frame of Reference serves as a comparison for other points and provides meaning 10-15 Unsafe Working Conditions Pay and Benefits Personal Dispositions Sources of Job Dissatisfaction Tasks and Roles Supervisors and Coworkers 10-16 Unsafe Working Conditions Each employee has a right to safe working conditions under the Occupational Safety 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 10-17 Sources of Job Dissatisfaction Personal Dispositions Negative affectivity is a dispositional dimensionthat 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 Prosocial Motivation 10-18 Sources of Job Dissatisfaction Supervisors and Coworkers A person may be satisfied withhis or her supervisor and coworkersdue to: – shared values, attitudes, and philosophies, – strong social support Pay and Benefits For many people, pay is a reflection of self worth, so pay satisfaction takes on critical significance when it comes to retention 10-19 Survey Feedback Interventions Surveys: emphasize overall satisfaction assess the impact ofpolicy 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 10-20 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 10-21 [...]...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 change 2 physical job withdraw 3 psychological job withdraw Withdrawal behaviors are related to one another, and partially caused by job dissatisfaction 10-11 Job Dissatisfaction- Job Withdrawal Process... Withdrawal Process Causes Job dissatisfaction - Personal disposition - Tasks&roles - Supervisors& coworkers - Pay&benefits Job Dissatisfaction Manifestations job withdrawal - Behavioral change Job Withdrawal - Physical job withdrawal - Psychological job withdrawal 10-12 Behavior Change An employee's first response to dissatisfaction would be to try to changethe conditions that generate dissatisfaction When... has to consider surveying people who are about to become ex-employees 10-20 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... are unionized, dissatisfaction leads to an increased grievances Employees sometimes initiate change through whistle-blowing - making grievances public by going to the media or government 10-13 Physical Withdrawal 4 ways a dissatisfied worker can physically withdrawal from the organization: 1 Leave the job 2 Internal transfer 3 Absenteeism 4 Tardiness Companies spend 15 %of payroll costs to make... make up for absent workers on average 10-14 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 2 perceptions 3 Importance Frame of Reference serves as a comparison for other points and provides meaning 10-15 Unsafe Working Conditions Pay and Benefits... send workers a clear signal that they care about them 10-17 Sources of Job Dissatisfaction Personal Dispositions Negative affectivity is a dispositional dimensionthat 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 Prosocial Motivation 10-18 Sources... Personal Dispositions Sources of Job Dissatisfaction Tasks and Roles Supervisors and Coworkers 10-16 Unsafe Working Conditions Each employee has a right to safe working conditions under the Occupational Safety 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. .. overall satisfaction assess the impact ofpolicy 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... Dissatisfaction Supervisors and Coworkers A person may be satisfied withhis or her supervisor and coworkersdue to: – shared values, attitudes, and philosophies, – strong social support Pay and Benefits For many people, pay is a reflection of self worth, so pay satisfaction takes on critical significance when it comes to retention 10-19 Survey Feedback Interventions Surveys: emphasize overall... 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 10-21