HRM gaining a competitive advantage noe ch010

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.

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Introduction
 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).

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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.

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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.

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Progressive Discipline
2 Components of Discipline Programs

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4 Determinants of Interactional
Justice
1.
1. Explanation
Explanation
2.
2. Social
Social sensitivity
sensitivity
3.
3. Consideration
Consideration
4.
4. Empathy
Empathy
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4 Stages of ADR

Arbitration

Mediation

Peer Review

Open Door Policy

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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.

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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.

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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.

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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

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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.

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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.

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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.
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Unsafe
Working
Conditions

Pay and
Benefits

Personal
Dispositions

Sources of
Job
Dissatisfaction

Tasks and
Roles

Supervisors and
Coworkers
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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.

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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

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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.

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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.

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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.

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