Chapter 10 Employee Separation and Retention McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Human Resource Management: Gaining a Competitive Advantage

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). 10-2

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. 10-3

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. 10-4

Progressive Discipline Documentation Progressive Punitive Measures 10-5

Open Door Policy 4 Stages of ADR 10-6

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. 10-7

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. 10-8

Job Dissatisfaction- Job Withdrawal Process Causes - Job dissatisfaction - Personal disposition - Tasks & roles - Supervisors& coworkers - Pay&benefits Manifestations - job withdrawal - Behavioral change - Physical job withdrawal - Psychological job withdrawal Job Dissatisfaction Job Withdrawal 10-9

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

Physical Withdrawal  4 ways a dissatisfied worker can physically withdraw 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

2 Forms of Psychological Withdrawal Job involvement Organizational Commitment 10-12

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 10-13

Sources of Job Dissatisfaction 10-14

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 10-15

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