Transcript Employee Separation and Retention

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.
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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.
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4 Determinants of Interactional Justice
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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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Sources of
Job
Dissatisfaction
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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.
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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.
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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.
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