Solution to improve organizational commitment in saigon co op

Employees with a high level of normative commitment feel that they ought to remain with the organization.. 1.3.2 Problem existence To identify the level of organizational commitment in

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: Dr Nguyen Thi Nguyet Que

Dr Tran Ha Minh Quan

Ho Chi Minh City - 2016

TABLE OF CONTENTS

ACKNOWLEDGEMENTS 4

EXECUTIVE SUMMARY 6

LIST OF FIGURES 6

LIST OF TABLES 6

CHAPTER 1: PROBLEM IDENTIFICATION 7

1.1 Company introduction 7

1.2 Background of the business problem 8

1.3 Business problem identification 11

1.3.1 Problem definition 11

1.3.2 Problem existence 12

1.3.3 Problem consequences 13

1.3.4 Potential causes 15

1.3.5 Cause and effect map 19

CHAPTER 2: ALTERNATIVE SOLUTIONS 20

2.1 Cause justification 20

2.2 Solution proposal 25

CHAPTER 3: SELECTED SOLUTION 31

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3.1 Solution justification 31

3.2 Designing the change strategy 33

CHAPTER 4: SUPPORTING INFORMATION 36

4.1 Supporting information of business problem background justification 36

4.2 Supporting information of problem existence justification 40

4.3 Supporting information of problem consequences 42

4.4 Supporting information of potential causes justification 44

CONLUSION 54

REFERENCES 55

LIST OF FIGURES

Figure 1.1: Cause-and-effect map 19

LIST OF TABLES Table 1.1: The recruitment and training cost in 2013 -2015 8

Table 1.2: The turnover rate of Saigon Co.op in 2013 – 2015 9

Table 2.1: Cost – benefits analysis for solution one 27

Table 2.2: Cost – benefits analysis for solution two 28

Table 2.3: Cost – benefits analysis for solution three 30

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ACKNOWLEDGEMENTS

First at all, I would like to express my sincere gratitude to my supervisors, Dr Nguyen Thi Nguyet Que and Dr Tran Ha Minh Quan for their continuous support of my thesis

My sincere thanks also goes to my dear colleagues, friends and classmates for their

invaluable advice, help, encouragement and support during the time I was doing this thesis

Last at all, I would like to express my great thanks to my family for their support,

assistance and encouragement for my study and thesis fulfillment

EXECUTIVE SUMMARY

Organizational commitment is an issue of prime importance, especially to the

management and owners of the organizations Organizational commitment and job

satisfaction are directly related to an organization’s profitability and competitive position

in the market Organizational commitment directly affects employees’ performance and

is therefore treated as an issue of great importance (Vijayashree and Jagdischchandra, 2011) Commitment is a sort of bond between an employee and the organization he is working for (Jaramillo et al., 2005) The strength of this bond is dependent on various factors This study will try to find the relation of some of these factors with

organizational commitment Organizational commitment has a strong relation with the employee behavior If an employee is committed to an organization, it would reduce the chances or occurrences of absenteeism and turnover (Igbaria & Greenhaus, 1992)

Commitment refers to an employee’s willingness to work positively in an organization and his continuance to work for it (Mowday et al., 1982) The dissertation concludes by endeavoring to unravel the causes behind the decreasing organizational commitment in employees of Saigon Co.op and gives suggestions as to what organizations might do to lower the problem The researcher recommends to managers to consider training and development as influencers of organizational commitment

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CHAPTER 1: PROBLEM IDENTIFICATION

This chapter includes three sections The first section introduces the background of the company The second introduces the background of the business problem while the third section introduces more details about the business problem of the company

1.1 Company introduction

Saigon Co.op established in 1989 after the dissolution of Ho Chi Minh City Trade Cooperation Its two main functions were directly operating the business and organizing the business for cooperatives in the city In the trend of market opening and economic development, the living standard of the people in Ho Chi Minh City at that time was rising and need for modern shopping centers emerged Some of the supermarkets were opened at small scale and high prices In this situation, Saigon Co.op decided to change the strategy from importation/exportation to wholesaling and retailing The first

supermarket store of Saigon Co.op opened in 1996 under the brand Co.opmart with the supports from Japanese, Singaporean and Swiss cooperatives (Co.opmart) After 18 years, Co.opmart is one of the biggest retailers in Vietnam There are 320 employees under seven department, including: Human Resources, Purchasing, Financial,

Accounting, IT, Marketing, Development and Planning This thesis mainly focus on headquarter of Saigon Co.op

1.2 Background of the business problem

In two quarter company meeting with all of employee and board of director, one of issues rising to be by the Chairman of the board is rising many cost in the company, especially recruitment and training cost The table below explain more detail

Table 1.1: The recruitment and training cost in 2013 -2015

Recruitment and training cost

(million VND)

(Human Resource Report 2013, 2014, 2015)

To define the problem, personal interview with the Vice-Director of Human

Resources and the Director of Human Resources to get more details about the issues Questions are used in discussion “What is your opinion about the rising cost? What cause

of this problem?” There is an increasing turnover rate from 18.4% to 25.7% in 2013

-2015 Comparing with the rate in retail industry, it was around 15 – 20% (Sources from General Statistics Office of Viet Nam 2015) The table below show more information

Table 1.2: The turnover rate of Saigon Co.op in 2013 – 2015

(Human Resource Report 2013, 2014, 2015)

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At 25.7% this rate is considered high, it reflects a lot of employees leave job and significantly affect the financial performance of an organization Direct costs include recruitment, selection and training of new people, with a phenomenal cost of time and expense Indirect costs include increased workloads and overtime expenses for coworkers and reduced productivity associated with low employee morale The organization need to hire new employees to replace and train them to be suitable of the vacancy And this is the main reason in increasing the cost of recruitment and training

To justify the reason why many employees quit their job The author conduct an interview with the Director and Vice-Director of Human Resources, current and former employees who are under different departments The interview result listed as below

First, Saigon Co.op faces tough competitors Mergers and acquisitions are

churning the Vietnamese retail market, with large domestic players buying out rivals and massive investment by foreign retailers For example, giant conglomerate Vingroup acquired supermarket chain Maximark, a popular retailer in the southern and south-

central regions Aeon - Japanese retail giant and Citimart completed a deal for business collaboration with the name of the local supermarket chain will be changed to

AeonCitimart Korean largest retailer E-mart just open its first hypermarket While facing fierce competition from several new foreign players, the employees are easily to be

approached by rival companies More than 50 percent of employees left jobs because of better job offers from competitors (AEON and Vin Mart) for higher position or higher salary This means the employees are less committed to the organization

Secondly, few opportunities for career development within the company About 40 percent of employees feel that it is difficult to get promoted to the next level Because they have to work hard, spend most of time at office to meet targets without failing to meet deadlines, so they do not have time to learn new skills to match with the

requirement of the next level Besides, the organization does not provide a clear picture

of career advancement for employees There are not any programs to help employees get

a promotion Compare with AEON, they pay close attention to employees’ career

development, and provide a targeted cultivation and development platform to realize the growth of both the Company and our employees Employees getting more development opportunities have less intention to leave organization So, lack of career development, is prompting a fair share of employees to feel disengaged, less productive and in many instances, leaving their jobs

Lastly, lack of skills training and development as the main reasons 30 percent of employees chose to voluntarily leave their positions The organization does not offer any training programs to improve the skill levels of employees such as advanced job-specific training and skill competitions This made employee do not have enough abilities

knowledge and skills to helps them perform better on their jobs They feel that they are not involved in activities that promote their professional development They are not allowed to involve in decision making process for some important projects or operation process, so they can not help managers execute difficult projects or implement the

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process Employee starts to feel like their efforts are going unnoticed, they may become less productive or move on to another company

The result showed that all of interviewees agreed that they did not feel committed

to the company so they are not satisfied or quit their job (details about interviewees

‘answers in chapter four) Combining the information from HR Department and interview result, a concern was raised about the level of organizational commitment and the

problem was identified as “the level of organizational commitment in Saigon Co.op is low and it needs to be improved"

1.3 Business problem identification

1.3.1 Problem definition

Boles, James, et al (2007) define organizational commitment are concerned with feelings of attachment to the goals and values of the organization, one’s role in relation to this, and attachment to the organization for its own sake rather than for strictly

instrumental values Meyer and Allen’s (1993) developed a three- component model of organizational commitment which has been the dominant framework for organizational commitment This three-component model is based on a more comprehensive

understanding of organizational commitment The three-component model consists of: Affective commitment is based on how much individual ‘want’ to stay in the

organization

Continuance commitment refers to an awareness of the costs associated with leaving the organization Continuance commitment based on individual having to remain with the organization lost their previous investment before gone

Normative commitment is the attachment that is based on motivation to conform to social norms regarding attachment reflects a feeling of obligation to continue

employment Employees with a high level of normative commitment feel that they ought to remain with the organization

1.3.2 Problem existence

To identify the level of organizational commitment in Saigon Co.op, a

questionnaire survey based on the Three-Component Model (TCM) of commitment (Meyer & Allen, 1997), measures three forms of employee commitment to an organization: desire-based (affective commitment), obligation-based (normative commitment) and cost-based (continuance commitment) Each is scored separately and, together, they can be used to identify the

“commitment profile” of employees within an organization (more detail in chapter four) with

30 employees from all department has been conducted and the results are illustrated in chapter four Results showed that there is a low level of commitment in the organization More specifically, over 40% respondents do not “want” to remain or maintain a link with the organization and have low sense of obligation to stay, want to pursue better

opportunities

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1.3.3 Problem consequences

The impact of low level of commitment on organizational performance can be manifest through employee turnover and employee productivity These factors are

discussed in depth below

First, High Turnover Rate, can be defined as the process in which employees leave the organization and have to be replaced by others, turnover is related to employee

commitment (Warsi, 2009) Employees with high organizational commitment are those who are emotionally attached to and identify with their workplace (Li, Frenkel &

Sanders, 2011) Organizational commitment is important to examine because high

commitment is associated with low turnover intentions (Meyer et al 2002) and because the cost of replacing an employee has been estimated to be twice their annual salary Worse, reduced staffing levels can result in higher mortality, infection rates, and accident rates (Allen, Shore, & Griffeth, 2003) The cost is not the only reason turnover is an important issue Lengthy training times, interrupted schedules, additional overtime,

mistakes and not having knowledgeable employees in place are some of the frustrations associated with excessive turnover which may be caused by lack of employee

commitment (Tumwesigye, 2010)

In Saigon Co.op, for three consecutive years from 2013 to 2015, the rate increase from 18.4% to 25.7% (Source from Human Resources report 2013 - 2015), nearly double

in 3 years

Second, Low Productivity According to Akintayo, 2010 the relationship between

employee commitment and productivity is not definitely established The consensus on this, however, is that in the long-run commitment leads to increased productivity

Extensive scientific research has also yielded indications suggesting that improving working environment results in a reduction in a number of complaints and absenteeism and an increase in productivity (Shapiro, 2008) It is evident in the research findings of (Sekar, 2011) that the more satisfied workers are with their jobs the better the company is likely to perform in terms of subsequent profitability and particularly productivity The author further, argues that in the relationship between work, the workplace and the tools

of work, workplace becomes an integral part of work itself (Sekar, 2011)

From “monthly performance evaluation report” of HR department, section”

productivity” was assessed at the lowest score in the rating scale - fail to meet

expectation It mean work often lags behind, produces less than expected, and do not complete the required amount of work or assignments efficiently More specifically, increasing missed project deadlines from many departments, also negative feedbacks about low quality of work from customers, supervisor and co-worker The number

increase from 78 and 102 comments in August and September of 2015 (Sources from HR report August and September 2015)

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1.3.4 Potential causes

First, Work Environment Work environment relates to the atmosphere in which

an individual works in an organization because of their needs and desires; and they

expect an environment where their can nourish and also their needs get satisfied (Steers, 1977) An organizational commitment is affected by the nature of relations between colleagues It has been noticed that conflicting relationships exist between peers; and between employees’ and the management, which threaten organizational commitment (Allen, Shore & Griffeth, 2003) Organizations need to promote social activities, so that friendly relations can improve between the employees; and in turn, their commitment

towards the organization excels (Kirmizi & Deniz, 2009)

Second, Compensation It is the benefits that workers receive from their jobs and significant elements of employee job attitudes such as organizational commitment,

motivation and job satisfaction (Khan et al, 2011) Compensation refers to all categories

of financial benefits, tangible services and benefits that an employee receives as part of employment relationship with the organization Rynes & Minette, 2004 described that there are two aspects that decide how much a compensation is attractive, the quantity of compensation which is provided and the weight age an employee gives to a specific reward Employees are certainly closer to their organizations and perform better job, while they receive healthier compensation in their organizations Compensation increase the level of efficiency and performance of the employees on their jobs and in the result

encourage long-term commitment to the organization (Paik, Y S et al, 2007) There are many previous studies result on effect of organizational commitment on compensation that proposed by Anvari et al (2011) and Nawab and Bhatti (2011), show that

compensation has a significant effect on organizational commitment The results of this study are based on equity theory of Adams (1965), two - factor theory of Herzberg (1959)

Third, Training Training contributes to gains in competitive advantage (Schuler & MacMillan, 1984) with some suggesting that improvements in productivity and

organizational performance have become the most dominant argument for justifying training (Scott & Meyer, 1991) Previous studies have confirmed and supported both positive and significant association between training opportunities and practices and employee commitment (Karia & Assari, 2006; Boon & Arumugam, 2006 and Bartlett, 2001) In the same vein, Paul & Anantharaman (2004) discovered that all-inclusive

training depicts a significant and positive linkage with organizational commitment and job satisfaction On the other hand, Ahmed and Bakar (2003) discovered that training plays a vital role in improving organizational commitment Besides the above, Benson (2006) revealed that on the job training is the way through which employee skills are developed and abilities honed and consequently contributes in the commitment and acts

as an influencing factor at work In a nutshell, it is axiomatic that numerous studies

reviewed support the positive impact training has on cementing and promoting employee commitment

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Fourth, Supervisor support Supervisor support is the degree to which supervisors value their contributions and care about their well-being (Powell, 2011) Supervisor support includes matters, such as caring about subordinates, valuing their contributions, helping them on work-related issues and facilitating their skill development (Emhan, 2012) Supervisor plays an important role in organization He/she has to provide timely information and feedback to employees in the workplace (Maertz et al., 2007)

Employees feel that the treatment they receive from them is an indication of the

orientation of their organization towards them (Stinglhamber & Vandenberghe, 2003) The level to which employees feel that they receive support from their supervisor affects the organizational commitment With the importance of supervisor support, many

researches have scrutinized the importance of supervisor support and found that

employees also expect supervisors to be caring and supportive (Eisenberger et al., 2002) Griffeth et al., 2001 found that supervisor’s support have strong relationship with

organizational commitment and DeConick, 2010 confirmed that supervisors’ actions directly impact the commitment of employees Dawley, Houghton & Bucklew, 2010 proved that supervisor support has more impact on organizational commitment

Final, Career Development Career development involves concerted efforts

directed towards assessing a workers’ potentials identifying likely career paths for that employee and designing and implementing “various forms of training and experience to prepare that person for more advanced job” Employee career effectiveness is directly

related to organizational effectiveness and that career planning activities can lead to a more committed work force (Ramay, 2012) Similarly McDonald & Makin (2000) opined that too much time in one position may be perceived as career stagnation and have an adverse effect on commitment Similarly, Satump and Hartman (1984) assert that higher perceived person-job congruence was positively related to organizational commitment Angel & Perry (1981), observed that a worker’s higher order needs significantly relates to organizational commitment

SOLUTIONS TO IMPROVE ORGANIZATIONAL COMMITMENT IN SAIGON CO.OP 19

1.3.5 Cause and effect map

Based on the literature review and the interview result, the following cause-and-effect map has been developed

(Akintayo, 2010) Supervisor support

CHAPTER 2: ALTERNATIVE SOLUTIONS

This chapter include two part The first part of the chapter focuses on finding the most important causes, followed on the second part propose three solutions based on literature review and organization data to solve the problem

2.1 Cause justification

To explore the main causes influence the low level of employee commitment, the author

conducts an interview with a group of six employees from all departments All of them have worked for the company for over three years Before the interview, the author

clarified each factor definition and their affect to the organization commitment The author asked participants open ended questions (refer to chapter four for the list of typical

questions) by starting with an introductory question, i.e., Tell me something about your job profile The respondents are freely to discuss and answer questions that focus on each

factor which have impact to the organization commitment

Work environment

The first cause is work environment According to Mehboob and Bhutto (2012) the

concept of work environment is comprehensive one including the physical, psychological and social aspects that mark up the working condition Sell and Cleal (2011) work

environment consists of space and facilities required doing the job, good relations with co-workers, recognition for good performance, motivation for performing well and

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participation in the decision making process of the firm Nga Nguyen shares that she quite satisfied with the availability of equipment and supplies which made her perform job better such as personal computer with many useful application, stable internet

connection which can transfer information rapidly to clients, etc In Saigon Co.op, there

is a positive work relationship As Yen Do said, a specialist from Purchase department, in fostered positive relationships when you are overwhelmed with your workload or you are having a problem with client, as you are a part of the team, other team members are willing to help you out

Compensation

According to John & Elyse (2010), compensation include basic salary and any bonuses or other economic benefits that an employee receives during employment Individuals have certain needs and desires which they seek to get satisfied The degree of an employee’s commitment towards an organization also depends on the extent of financial and personal rewards In Lam Nguyen’s opinion, she is not satisfied with the basic salary, compare with her friend who work in Big C (the competitor) is lower But the organization offers a good benefits package such as vacation time, medical insurance, individual retirement account, profit sharing compared to other organizations A good benefits package is also

a sign of a company that actually cares about its employees In her sharing, with

retirement accounts she felt more committed to meeting the company's goals And it is totally different with Hanh Dang’s answer, pay and benefits are not commensurate with

her skills and experience, “I have worked for 4 years, my salary increased only five percentage every year However my pay is less than others who are doing similar work I felt unhappy and not fulfill my needs and financial desires, which made me less

committed and do not want to stay with the organization so I looking for a new job” Training

Recently, training is much more than a chance for employees to develop skills In fact, effective training and development have become the cornerstones of the most powerful and attractive employer brands Tam Nguyen – a specialist from Purchasing Department

“training and development opportunities as the factor that most influences my decisions

to accept job offers” There are three employees report that they do not receive sufficient training Most of them had received little training in recent years Furthermore, few of them had received the amount of training they needed to keep on top of their work "I have not received sufficient training to do my job effectively" or “I cannot apply the training I have received" Tam Nguyen answered He did not learn new skills which helped him improve his work Basing on their feedback, many training courses only slide-based presentation, not include real-life situation which made employee difficult to understand and apply to work “Training delivery using theoretical, dry content that is far removed from the day-to-day issues” The company does not analyze to identify those who need training and what kind of training is needed Nam Le’s comment” the topic has

no relevance or importance to me or my job and the content is completely academic, impractical, unsupported, or just an exercise in memorization I felt it just waste of time

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to attend these training course” Nga Nguyen with the same opinion “ I felt that the

training wasn't designed to meet my needs, but was rather intended to just "put something out there" The training program just for basic level, mainly focus on improving soft skill like: presentation, problem solving, negotiation and team building The organization did not have any training courses for advance level like management training” Half of the respondents agreed that their commitment is influenced by the level of training conducted

by organization All of them find that training does not provide an opportunity for them

to develop as well as enhance their knowledge and skills for effective development And this is one of the main reason why employees left jobs

Supervisor support

Employees should feel support and respect from the supervisor and organization in order

to be more loyal to reduce job turnover and job switching (Janssen, 2005) Yen Do shared that she felt lack of support from her boss, because her boss is very busy with a lot of work and project so he did not have time to her feedback on the performance or develop and objective with boss For Lam Nguyen’s opinion, “I do not have my supervisors’ support in work or have good interactions with my supervisors My boss does not provide feedback, encouragement and support my performance” However, this factor does not play an important role in affecting organizational commitment As Lam Nguyen share more, because of my boss is very busy with meeting and a tide schedule so he does not have time to give advice and feedback, I can receive the support from the direct team

leader and colleagues on my work and progress So this factor just have a little impact to the organizational commitment

Career development

Career Development Opportunities have been shown to result in higher levels of

commitment among employees (Paul et al., 2004) Career development is also an

important factor that affects organization commitment There are three employees agreed that there's room for career advancement in the company "If there are no career

advancement opportunities in job, I will try to find a new job somewhere else" Tam Nguyen answered Other respondents –Hanh Dang have the same idea, they both agreed that the company does not offer them anything such as clear career paths, professional development, continued education, or mentorship program Even Hanh Dang won the reward "Best employee of the year 2014" and ask for promotion, her boss said he would consider and she has not received the answer for eight month later She was upset and took the job offer form the competitor - AEON which offer high position Both of two respondents agreed that they have no sense of belonging with the organization,

decreasing their desire to be a part of the organization

In four potential causes, which are indicated from the literature, three factors are work environment, compensation and supervisor support has minimum affect to

organizational commitment From the result above, most of the respondents agreed

“ineffectiveness training and lack of career development” as main cause that affect low

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level of commitment In more detail, training course does not help employee perform better or provide employees with opportunities to learn general skills and knowledge which can be used in future career An organization that provides training and

development opportunities to their employees gives the signal of care Training and development give the impression of care and role of employees, so they will be loyal with the organization Organizations that invest on training, give the feeling of appreciation and they will be more committed (Barrett & O'Connell, 2001)

2.2 Solution proposal

When a firm takes on career development as a human resource function, such activity is called career guidance, which is composed of three sub-processes or steps: forecasting, planning and counseling The first step is to identify the usual path of promotion (career ladder) within the organization The second step is to estimate when and where job

opening will occur and to identify liking candidates for these openings Forecasting is an integral part of manpower planning The likely candidates are assessed to determine their existing skills and these skills are compared with those required for the job (Cromwell & Kolb, 2002) Training may then be planned to correct any skill deficiencies that are

identified through this comparison Tomlinson (2002) suggested that training is a

valuable activity for enhancing skills and improving staff performance, and that training can address some of the factors contributing to staff retention, such as perceived support for the supervisor, the agency and community A career development program does not

require elaborate procedures The essential components are counseling and training Career counseling provides an avenue for the employee to assess their career needs The training component assists employees in growth and development by enhancing their knowledge, skills and abilities in their present job assignments or prepares them for future opportunities Proficient in-service training and career specialty training can

accomplish this Each of these components is vital to the success of the career

development initiative (Choo and Bowley, 2007) An organization that provides training opportunities to their employees gives the signal of care It shows that organization

invests in human capital and they acknowledge their significance in term of overall

organizational performance These organizations are very attractive to the employees because of emotional attachment to give something in return Thus workers are more interested to stay in those organizations that offer training opportunities because it

increases the employability (Bartlett, K R., 2001)

This study showed most respondents said that two factors “training and career

development” have a great influence on the level of organizational commitment The author propose three solutions

Solution one: Provide development training courses to reach employee potential

A company's employees are its most important asset and their performance is what drives the performance of the whole organization Therefore, it falls upon the managers of each department to ensure that all individuals are directed, mentored and motivated in a way

These programs are purposive and

meant to equip the employees with the

necessary skills that are required for

particular jobs Owing to these programs,

the employees are not only reduce errors

and to improve productivity and safety but

also how they need to enhance their skills

and competence level It's a great way to

achieve overall organizational

development, effectiveness and efficiency

in a desired manner

Training process is time consuming

as HR Department need time to find the suitable courses

The training cost will increase because of adding more training courses

Solution two: Supporting employees through financial growth program

The purpose of this program is to motivate employees who have an exceptional manner

by exemplifying outstanding performance through his or her work and exhibiting a

positive and supportive attitude Having a financial growth program not only can keep your company from capsizing, it can increase productivity and raise revenues

Table 2.2: Cost – benefits analysis for solution two

Encourage engagement –When

employee gets some praise, he/she

automatically tries to give the same level of

performance and improves efforts further

Increase loyalty and retain the best

talent – When employee is recognized for

his/her hard work, he/she tends to be more

loyal towards the organization and the

work he/she is doing This is something

that can help to retain important and skilled

employees in the long run

Build a supportive work environment –

The more employees feel encouraged and

valued, the more will they be supportive to

your cause, hence building a supportive and

Each employee who has the top performance will receive a cash bonus: 1,000,000 VND

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active work environment

Solution three: Develop specific career development program

Employees usually feel more engaged when they believe that their employer is concerned about their growth and provides avenues to reach individual career goals while fulfilling the company’s mission A career development program provides employees with an ongoing mechanism to enhance their skills and knowledge that can lead to mastery of their current jobs, promotions and transfers to new or different positions Implementing career program may also have a direct impact on the entire organization by improving morale, career satisfaction, motivation, productivity, and responsiveness in meeting departmental and organizational objectives

Organizations should identify workers who are central to the execution of

business strategy and then develop or update retention plans to meet the needs and

expectations of these employees Critical employees include those who drive a

disproportionate share of key business outcomes, significantly influence an

organization’s value chain or are in short supply in the labor market Providing

identifiable career paths is an important aspect of retention plans, along with coaching and mentoring employees with high potential and moving proven performers into new roles that fit skills developed over

Table 2.3: Cost – benefits analysis for solution three

Facilitating promotions within their

organizations by providing employees with

career coaching, helping managers develop

clear selection criteria and cushioning the

blow for those not selected for promotion

Helping non selected candidates

continue to strengthen their skills in

expectation of future opportunities within

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CHAPTER 3: SELECTED SOLUTION

In this chapter, the author chooses the solutions can be improve the low level of organizational commitment and combing with the literature to confirm the selected

of Human Resources to select the best solution

In the first element of the justification – functional requirements: all of three solutions will help to solve the business problem

The second element – user requirements: In solution one and two, add more

training courses for advancement and reward employees who has top performance in month Employees feel more committed to the organization expressed through

recognition of their good work because it confirms their work is valued When employees and their work are valued, their satisfaction and productivity rises, and they are motivated

to maintain or improve their good work Employees are usually not averse to putting out

an extra effort when the business needs help in overcoming a problem or meeting a