Human resource management gaining a competitive advantage 2014 chapter 10

Human Resource Management:
Gaining a Competitive Advantage

Chapter 10
Employee Separation and
Retention

McGraw-Hill/Irwin

Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.


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 those who would prefer to 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.

 A standardized, systematic approach to
discipline and discharge is necessary.

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Principles of Justice
 Outcome fairness-the judgement that
people make regarding outcomes received
relative to outcomes received by others with
whom they identify.

 Procedural justice- focuses on methods
used to determine the outcomes received.

 Interactional justice- the interpersonal
nature of how the outcomes were
implemented.

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Progressive Discipline

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4 Stages of
ADR

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.

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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 DissatisfactionJob Withdrawal Process

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Behavior Change
 An employee's first response to dissatisfaction
would be to try to change conditions that
generate dissatisfaction.

 When employees are unionized, dissatisfaction
leads to 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
withdraw from the organization:
1.
2.
3.
4.

Leave the job
Internal transfer
Absenteeism
Tardiness

 Companies spend 15 % of payroll costs to
make up for absent workers on average.

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2 Forms of Psychological
Withdrawal

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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

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Sources of
Job
Dissatisfaction

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Sources of Job
Dissatisfaction
 Personal Dispositions
 Negative affectivity is a dispositional
dimension that 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
 Pro-social Motivation

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Sources of Job Satisfaction
 Supervisors and Coworkers
 A person may be satisfied with his or her
supervisor and coworkers due to:
 shared values, attitudes, and philosophies,
 strong social support

 Pay and Benefits
 Pay is a reflection of self-worth, so pay
satisfaction is significant when it comes to
retention.

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