Human resrouce management 12th mathis jacson chapter 003

Individual Employee Performance1.. Individual ability to do the work 2...  Broad-based strategies and tactics to address individual employee concerns about:  Consistency in organizatio

CHAPTER 3

Organization/Individual Relations and Retention

■ Describe different kinds of absenteeism and turnover.

■ Explain two ways to measure absenteeism and turnover.

■ Outline the steps in managing retention.

After you have read this chapter, you should be able to:

Individual/Organizational Relationships

The unwritten expectations employees and employers have about the nature of their work relationships

Affected by age of employee and changes in

• Flexibility to balance work

and home life

FIGURE 3-1 Factors Affecting Job Satisfaction and Organizational Commitment

 The degree to which employees believe in and accept organizational goals and desire to remain with the

organization

 Continuance commitment: the likelihood that an

individual will stay with rather than withdraw from the organization

Individual Employee Performance

1. Individual ability to do the work

2. Effort level expended

3. Organizational support

Performance (P) = Ability (A) x Effort (E) x Support (S)

 Broad-based strategies and tactics to address

individual employee concerns about:

 Consistency in organizational rewards

 Organizational support for employee efforts

 Accurate measurement of employee performance

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Thomson/South-Western All rights reserved

3–10

Retention of Human Resources

1. Money is the main reason people

leave

2. Hiring has nothing to do with

retention

3. If you train people, you are only

training them for another employer

4. Do not be concerned about retention

during a merger

5. If solid performers want to leave, the

company cannot hold them

Retention of Human Resources

Sacrifice

 Culture and values

Positive, distinctive company that is well-managed, and offers exciting challenges

 Attractive job

Freedom and autonomy, exciting challenges, and career advancement and growth

 Compensation and lifestyle

Differentiated pay package, high total

compensation, geographic location, and respect for

FIGURE 3-4 Some Characteristics of People and Jobs

 Any failure to report for work as scheduled

or to stay at work when scheduled

 Involuntary absenteeism

Unavoidable with understandable cause

(e.g., actual illness)

 Voluntary absenteeism

Avoidable without justifiable

cause (e.g., feigning illness)

FIGURE 3-5 Reasons for Unscheduled Absences

Positive reinforcement

Combination approach

Paid time-off (PTO)

“No fault”

policy

Controlling Absenteeism

FIGURE 3-6 Employee Absenteeism Control Actions

 The process in which employees leave an

organization and have to be replaced

 Inability to achieve business goals

 Loss of “image” to attract other individuals

 High costs of turnover and replacement

Churn—hiring new workers while laying off others

Controllable

work of

(Number employees)

of number (Average

period during

absence job

gh lost throu s

person-day of

Number

×

×

Incidence rate—absences per 100 employees each day

Inactivity rate—percentage of time lost to absenteeism

Severity rate—average time lost per absent employee during a specified period of time

HR Metrics: Measuring Absenteeism

 Overtime for replacements

 Fees for temporary employees, if incurred

 Supervisor’s time

 Substandard production

 Overstaffing necessary to cover absences

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Thomson/South-Western All rights reserved

3–22

HR Metrics: Measuring Turnover

100 midmonth

at employees of

number Total

month the

during s

separation employee

of Number

HR Metrics: Measuring Turnover (cont’d)

 Job and job levels

 Department, units, and location

 Reason for leaving

 Length of service

 Demographic characteristics

 Education and training

 Knowledge, skills and abilities

 Performance ratings/levels

28,000 20

3 3,500 70,000

Teller

FIGURE 3-8

Managing

Retention

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Thomson/South-Western All rights reserved

3–26

FIGURE 3-9 Possible Retention Interventions

• Spot cash awards for good work

• Develop profiles of successful

employees and hire to the profile

• Learning bonuses

• Focus groups on employee issues

• Voluntary job sharing

• Realist job avenues

• Excellent employee development

• Payback agreement for moving

• Subsidized child/elder care

• Retrain for promotion/transfer

• Pay tied to performance

• Telecommuting

• Recognize good work

• Good working conditions

• Friendly work culture/co-workers

• Considerate supervisors

Improved Retention