HRM gaining a competitive advantage noe ch010

Learning Objectives Distinguish between involuntary and voluntary turnover and discuss how eachcan be leveraged for competitive advantage..  Voluntary turnover—initiated by employee of

Human Resource Management:

Gaining a Competitive Advantage

Chapter 10 Employee Separation and Retention

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

 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 thosewho would preferto stay).

 Voluntary turnover—initiated by employee

(often those the company would prefer to keep).

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

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.

Progressive Discipline

2 Components of Discipline Programs

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.

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

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

- Psychological job withdrawal

Job Dissatisfaction

Job Withdrawal

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.

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 up for absent workers on average.

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

Pay and

Benefits

Tasks and Roles

Sources of

Job Dissatisfaction

Personal Dispositions

Unsafe

Working

Conditions

Supervisors and

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

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

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

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

 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