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.

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. 10-2

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- the interpersonal nature of how the outcomes were implemented. 10-3

4 Determinants of Interactional Justice 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

Sources of Job Dissatisfaction 10-10

Unsafe Working Conditions  Each employee has a right to safe working conditions under the Occupational Safe 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

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

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