Art of Leadership & Motivation
HRM – 760
Lecture 26
FACILITATOR
Prof. Dr. Mohammad Majid Mahmood
Leader`s Key Responsibility:
Human Resource Retention
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Ethical Issue
There are numerous negative organizational consequences
to firing employees, including the discomfort of the
supervisor who delivers the termination information,
conflict or sabotage from the departing employee, and
the potential for a lawsuit.
In response, many supervisors provide problem employees
unpleasant work tasks, reduced working hours, or
otherwise negatively modify their jobs in hopes that the
problem employees will simply quit.
What are the ethical issues raised by this strategy? 3
OUR ASSEST WALK OUT OF THE DOOR
EACH EVENING. WE HAVE TO MAKE
SURE THAT THEY COME BACK THE
NEXT MORNING
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HR
Critical Findings
One Out of Every Three People
Plan on Leaving in the Next Two
Years
Hay Group, USA
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It Costs Much More to
Critical Finding
Replace Employees Than to
Keep Them
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Challenges Facing Organizations
Challenges Facing Organizations
Worker Shortage
Worker Shortage
Skill Shortage
Skill Shortage
Talent Management
Talent Management
Generational
Generational
Differences
Differences
Global Competition
Global Competition
Diversity
Diversity
Loyalty
Loyalty
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What is Employee Retention?
Employee retention is a process in which
the employees are encouraged to remain
with the organization for the maximum
period of time or until the completion of the
project.
Employee retention is beneficial for the
organization as well as for the employee.
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Defining HR Retention
“ The extent to which an employee is committed to
their work and their organization, and the extent
to which this commitment impacts their
performance and intent to stay with the
organization.”
“ A positive attitude held by the employee towards
the organisation and its value. An engaged
employee is aware of business contexts and
works with colleagues to improve performance
within the job.”
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So What is it?
Based on these definitions, HR retention is
the total of the behaviour employees
espouse in the organisation which
primarily should be characterised by:
Belief in the organisation
Drive to work and make things better
Respect and support for others
Desire to learn new skills
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Retention is Commitment Based
Rational Commitment:
Employees believe they will personally benefit
financially, developmentally, or professionally from the
team or organization.
It makes sense for them to stay with the organization.
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Rational Commitment Driven By:
Remuneration
Incentives
Career growth opportunities
Health benefits
Work environment
Learning and development opportunities
Worklife balance
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Retention is Commitment Based
Emotional Commitment:
Believing in, valuing, or enjoying their daytoday work,
teams, managers or organizations.
Because they can make a link between their role and
organizational objectives and value system, and they
enjoy or find fulfillment in the work
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Emotional Commitment Driven By:
Enjoyment of one’s job
Role clarity
Understanding the link between one’s job and
organisational strategy
Belief in organisational values
Respect in direct manager, team and
organisation
Emotional commitment drives discretionary effort
PERFORMANCE
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Role Based Levels of Retention
There are five work related roles that an employee can assume
and these are:
Job Holder Role: employees come to work and do the job that is
listed in their job description.
Team member role: employees go “above and beyond” to help
members of their team work toward common goals.
Entrepreneur role: employees come up with new ideas and processes
and try to get those ideas implemented.
Career role: employees do things to enhance their career in the
organisation; they learn, they adapt new skills, and more.
Organisation member role: employees do things that promote and
help the company even if it’s not part of their jobs or their team’s
duties.
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Have you ever hired
the wrong person?
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Why Good People Quit?
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Why Good People Quit
Poor match between the person and the job
Poor fit with the organizational climate and
culture
Poor alignment between pay and
performance
Poor connections between the individual,
their coworkers, and the supervisor
Poor opportunities for growth and
advancement
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Hire the Right People
How Do You Know What
the RIGHT Person Looks
Like?
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Typical Hiring Practices
Failure to detect motivational fit with job
Applicants "exaggerate" to get a job
Most hiring decisions made by intuition
during the first few minutes of the interview
Two out of three hires prove to be a bad fit
within the first year
Most interviewers not properly trained
Excellent employees placed in the wrong
jobs grow frustrated when unable to utilize
their strengths
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Reasons why an employee leaves an
organization
Monetary factors
Lack of good working condition
No Flexible work schedules.
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Reasons why an employee leaves an
organization
Lack of respect
Very Few Supportive colleagues:
Organization is more concern toward
business
Increase in favoritisms
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Reasons why an employee leaves an
organization
Employee needs pride in where they work &
what they do
Lack of appreciation
Lack of challenges in job
The job or workplace was not as
expected
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Reasons why an employee leaves an
organization
The Mismatch Between Job and Person
Too Little Coaching and Feedback
Lack of support
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Reasons why an employee leaves an
organization
Stress From Overwork and WorkLife
imbalance
Loss of Trust and Confidence in
Senior Leaders
Less frequency in giving rewards.
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