Organizational/Individual Relations and Retention

1. Organizational/Individual Relations and Retention MGM 4127: CHAPTER 3

2. introduction • What is job retention? • Why it is important to understand job retention in HR planning?

3. Introduction • Introduction • Best employers pay special attention to retaining talent by building trust in their employees, walk the talk, and have immense credibility • They place importance on ethics and integrity and create a working environment that nurtures learning

4. Taking job is

5. The Psychological Contract • Individual/Organizational Relations • The Psychological Contract • Unwritten expectations that employees and employers have about the nature of their work relationships • The Changing Psychological Contract • Loyalty • Psychological ownership-employees can give a better commitment when they can see their rights in the company • Both personal mistreatment and the perception that the organization has abandoned an importance principle or cause, can be seen by an employee as a violation of psychological contract

6. Generational Differences • Generational Differences • Matures • Baby boomers • Generation X • Generation Y

7. JOB RETENTION

8. Factors affecting Job Satisfaction, Loyalty and Commitment • Job Satisfaction, Loyalty, and Commitment

9. Job Satisfaction, Loyalty and Commitment (Contd.) • Job Satisfaction • Job satisfaction is a positive emotional state resulting from evaluating one’s job experiences • Work-life balance is seen as an effective way to improve employee job satisfaction • Loyalty and Organizational Commitment • The degree to which employees believe in and accept organizational goals and desire to remain with the organization • Employee engagement refers to the extent to which an employee is willing and able to contribute

10. Individual Employee Performance

11. Individual Employee Performance (Contd.) • Individual Performance Factors • Performance = Ability x Effort x Support

12. Effort can come from • Individual Motivation • The desire within a person causing that person to act • Diverse theories are at play to drive a person’s motive • Management Implications for Motivating Individual Performance • Motivation concerns of employees are diverse • Cost-effectiveness of motivational programs should be revaluated timely • Employee deficiencies, inconsistent reward policies, low desire for the rewards, etc. are possible causes of inadequate individual behavior

13. Retention of Human Resources • Retention of Human Resources • Employee turnover is getting expensive, causing employers to study why people leave or stay • Myths About Retention • Moneyis the main reason why people leave • Hiringhas nothing to do with retention • If you train people, you are only trainingthem for another employer • Do not be concerned about retention during a merger • If solid performers want to leave, the company cannot hold them

14. questions • Why People Stay or Leave • How to retain your employees? • What factors or elements we need to put attention to retain our employees?

15. Why People Stay or Leave • Why People Stay or Leave • Work and non-work reasons prompt people to leave or stay • Employers can control some but not all factors (see Figure 3-3)

16. CLASS EXERCISE • Organization: Chubb pharmaceuticals • Position: Machine operator • Number of worker in 2010: 250 • Number of turnover 2010: 105 • Work : 3 shift per day, work as per shift/schedule prepared by the management • Average wage: RM35 per day basis • Benefit: 12 days annual pay leave, medical up to RM100 per month per family, shuttle bus from specific location to the factory • WRITE AT LEAST 5 REASONS WHY PEOPLE LEAVE OR STAY

17. Drivers of Retention (Contd.)

18. Drivers of Retention (Contd.) • Characteristics of the Employer • Organizational Culture and Values • The shared values and beliefs of a workforce, such as consistent and thoughtful practices • Management and Retention • Challenges seen by the leaders as threats or opportunities • Visionary quality of the leaders • Job Security • Personal security/anxiety • How other good people are treated and retained

19. Job Design/Work • Drivers of Retention (Contd.) • Job/Person Match

20. Drivers of Retention (Contd.) • Job Design/Work • Time Flexibility • Formal policies are needed to guide managers and employees • Work Flexibility • Work-life balancing program include: • Different work arrangements • Leave for children’s school functions • Compressed workweek • Job sharing • On-site child/adult care • Telecommuting/teleworking • Employee assistance program • On-site health services • Wellness programs • Fitness facility

21. Drivers of Retention (Contd.) • Career Opportunities • Opportunities for personal growth tops the list of reasons why employees take the job and stay • Training/Development and Mentoring • Tuition aid programs • Orientation • Mentoring • Career Planning/Advancement • People who have been promoted are less likely to leave • A two-way process is needed for career planning efforts to be effective

22. Drivers of Retention (Contd.) • Rewards • Competitive Pay and Benefits • Exotic benefits include • Dry cleaning pickup and drop-off • Car maintenance services in company parking lots • Coffee and latte kiosks • ATM machines in break rooms • Performance and Compensation • Frequently, employers give cash bonuses and lump-sum payments to reward extra performance

23. Drivers of Retention (Contd.) • Rewards (Contd.) • Recognition • Tangible • Employee of the Month plaque; perfect attendance certificate; money; etc. • Intangible • Verbal feedback; acknowledgement cards from colleagues/bosses; etc.

24. Drivers of Retention (Contd.) • Employee Relationships • HR Policies • Fairness of Disciplinary Actions • Fair and Non-discriminatory Treatment • Supervisory/Management Support • Co-worker Relations

25. Employee Absenteeism • Employee Absenteeism • Absenteeism is expensive and employers should take action to reduce absenteeism • Types of Absenteeism: Please see Figure 3-5 (next slide) • Voluntary Absenteeism (illness; death in the family; etc.) • Involuntary Absenteeism (bad work attitude; etc.)

26. Employee Turnover • The process in which employees leave an organization and have to be replaced • Turnover is a costly problem • Types of Employee Turnover • Involuntary Turnover • Terminations due to poor performance or rule violations • Voluntary Turnover • Employees leave by choice • Functional Turnover • Lower-performing or disruptive employees leave

27. Employee Turnover • Types of Employee Turnover (Contd.) • Dysfunctional Turnover • Key individuals and high performers leave at critical times • Uncontrollable Turnover • Employees leave for reasons outside the control of the employer • Controllable Turnover • Employees leave for reasons that can be influenced by the employer

28. Employee Turnover • Employee Turnover (Contd.) • Turnover and Churn • Churn refers to hiring new workers while laying off others • This may be due to the need to increase headcounts in one function area or geographical location and reduce those in other area or locations

29. EXAMPLE:

30. Question……. • What would you do to satisfy these 2 person and at the same time increase their loyalty to your company.