1. 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

2. Learning Objectives  Distinguish between involuntary and voluntary turnover and discuss how each can be leveraged for competitive advantage.  List and apply major elements that contribute to the perception of justice to discipline and 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. 10-2

3. Introduction  To compete, organizations must ensure:  Good performers are motivated to stay.  Chronically low performers are allowed, encouraged or if necessary, forced to leave. MGMT 352 students: Give some thought to how you are going to manage the two above processes.  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). 10-3

4. 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.  ***Each state has or does not have EAW  Violence in the workplace caused by involuntary turnover has become a major organizational problem.  A standardized, systematic approach to discipline and discharge is necessary. 10-4

5. 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. 10-5

6. 4 Determinants of Interactional Justice 10-6

7. Progressive Discipline Documentation Progressive Punitive Measures 10-7

8. Open Door Policy 4 Stages of ADR 10-8

9. 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. 10-9

10. 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. 10-10

11. 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.  MGMT 352 Students: As a manager, you need to be able to discern if a valued employee is showing signs of job withdrawal, so as to intervene. 10-11

12. 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 10-12

13. 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. 10-13

14. 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. 10-14

15. 2 Forms of Psychological Withdrawal Job involvement Organizational Commitment 10-15

16. 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 10-16

17. Sources of Job Dissatisfaction 10-17

18. 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. 10-18

19. 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. MGMT 352 Students: “Dispositional” means a predisposition to behave or have emotional responses in a certain way across all situations.  Tasks and Roles  The nature of the task itself is the key predictor of job dissatisfaction.  Job Rotation  Pro-social Motivation 10-19

20. 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. 10-20

21. Survey Feedback Interventions  Surveys:  emphasize overall satisfaction.  assess the impact of policy 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. 10-21

22. 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. 10-22