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Chapter 10
Employee Separation and Retention
Copyright 2015 McGraw-Hill Education. All rights resered. !o reproduction or distri"ution without the prior written consent o# McGraw-Hill Education.
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Learning Objectives
1. Distinguish between involuntary and voluntaryturnover and discuss how each can be leveragedfor competitive advantage.
2. ist and apply ma!or elements that contribute to
the perception of !ustice to discipline and dismissal.
". Specify the relationship between !ob satisfactionand !ob withdrawal and identify sources of !obsatisfaction.
#. $nderstand the process of using survey feedbac%to promote retention of %ey personnel.
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Introduction
To compete, organizations must ensure: &ood performers are motivated to stay.
Chronically low performers are allowed' encouraged
or if necessary' forced to leave.
2 Types of Turnover: Involuntary turnover(initiated by the
organi)ation
*often among those who would prefer to stay+. Voluntary turnover(initiated by employee
*often those the company would prefer to %eep+.
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Turnover
mployment!at!"ill doctrine ! in theabsence of a speci,c contract' either anemployer or employee could sever theemployment relationship at any time.
Violence in t#e "or$place caused byinvoluntary turnover has become a ma!ororgani)ational problem.
- standardi)ed' systematic approach todiscipline and discharge is necessary.
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%rongful &isc#arge
' "rongful disc#arge suit attempts toestablis# t#at t#e disc#arge eit#er
()* violated an implied contract or covenant(t#at is, t#e employer acted unfairly* or
(2* violated public policy (t#at is, t#e employee"as terminatedbecause #e or s#e refused to do somet#ingillegal, unet#ical, or unsafe*+
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rinciples of -ustice
Outcome fairness ! the !udgement thatpeople ma%e regarding outcomes receivedrelative to outcomes received by otherswith whom they identify.
rocedural justice ! focuses on methodsused to determine the outcomes received.
Interactional justice ! the interpersonal
nature of how the outcomes wereimplemented.
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.i/ &eterminants ofrocedural -usticeTable )0+)
*1+ 1onsistency+he procedures are applied consistentlyacross time and other persons.
*2+ ias suppression+he procedures are applied by aperson who has no vested interest in the outcome and noprior pre!udices regarding the individual.
*"+ Information accuracy+he procedure is based oninformation that is perceived to be true.
*#+ 1orrectability+he procedure has built/in safeguardsthat allow one to appeal mista%es or bad decisions
*+ 3epresentativeness+he procedure is informed by theconcerns of all groups or sta%eholders *co/wor%ers'customers' owners+ aected by the decision' includingthe individual being dismissed.
*+ t#icality+he procedure is consistent with prevailing
moral standards as they pertain to issues li%e invasion ofprivacy or deception.
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10-(
e erm nan s oInteractional -ustice
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rogressive &iscipline
10-)
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/ample of rogressive &isciplinerogram Table )0+5
O667.638971 O3;'7I
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rograms
's attempt to help wor%ers who aredrug dependent' alcoholic' orpsychologically troubled.
'sare usually identi,ed in o3cialdocuments published by the employer.
mployee "ellness programs ta%e aproactive and preemptive focus on trying to
prevent health/related problems in the ,rstplace.
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1ounseling
4elps displaced employees managethe transition from one !ob to another.
Services such as !ob search support'r5sum5 criti6ues' !ob interviewingtraining and networ%ing opportunitiesmay be provided in/house or throughan outside source.
-imed at helping people reali)e thatother opportunities e7ist.
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Voluntary Turnover
%#y do people leave
organizationsA
McGraw-Hill/Irwin 2014 The McGraw-Hill Companies, All Righs Reser!e"
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10-1%
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Managing Voluntary TurnoverB -ob %it#dra"al
rogression of %it#dra"al T#eory!dissatis,ed individuals enact a set ofbehaviors in succession to avoid theirwor% situation.
5 categories:1. behavior change
2. physical !ob withdraw". psychological !ob withdraw
%it#dra"al be#aviors are related toone another' and partially caused by !obdissatisfaction.
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e#avior 1#ange
-n employee8s ,rst response todissatisfaction would be to try to changeconditions that generate dissatisfaction.
9hen employees are unioni)ed'dissatisfaction leads to increased grievances.
Employees sometimes initiate changethrough"#istle!blo"ing!ma%ing grievances
public by going to the media or government.
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#ysical %it#dra"al
# ways a dissatis,ed wor%er can p#ysically"it#dra"from the organi)ation:
1. eave the !ob
2. ;nternal transfer". -bsenteeism
#. ardiness
Companies spend 1 < of payroll costs toma%e up for absent wor%ers on average+
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- b . ti f ti d - b
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-ob .atisfaction and -ob%it#dra"al
-ob satisfaction is a pleasurable feeling thatresults from the perception that one8s !obful,lls one8s important !ob values. hreeaspects of !ob satisfaction
)+ Values
2+ erceptions
5+ Importance
- frame of reference is a standard pointthat serves as a comparison for other pointsand thus provides meaning.
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-ob&issatisfaction
.ources
-ob nric#ment-ob 3otation
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nsa e or ng
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nsa e or ng1onditions
Each employee has a right to safe wor%ingconditions under the Occupational .afeand Cealt# 'ct of )DE0 (O.C'*+
=inancial bonuses lin%ed to speci,c safetyrelated goals help %eep employees focusedand pay for themselves over time.
=irms that emphasi)e safety send wor%ers aclear signal that they care about them.
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&issatisfaction
ersonal &ispositions 7egative a=ectivityis a dispositional
dimension that re>ects pervasiveindividual dierences in satisfaction
with any and all aspects of life. Tas$s and 3oles he nature of t#e tas$ itself is the
%ey predictor of !ob dissatisfaction. -ob 3otation ro!social Motivation
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.atisfaction
.upervisors and 1o"or$ers - person may be satis,ed with his or her
supervisor and cowor%ers due to:
shared values' attitudes' and philosophies'
strong social support
ay and ene?ts
?ay is a re>ection of self/worth' so pay
satisfaction is signi,cant when it comes toretention.
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Measuring and Monitoring -ob
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Measuring and Monitoring -ob.atisfaction
.urveys: emphasi)e overall satisfaction.
assess the impact of policy changes.
allow the company to benchmar%best practices+
;f people fail to see timely actions ta%enon matters identi,ed as problems in thesurvey' satisfaction is li%ely to be lowerthan it would be in the absence of asurvey.
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.ummary
Involuntary turnover re>ects a separation
initiated by the organi)ation.
Voluntary turnover re>ects a separationinitiated by the individual. ;t can be minimi)edby measuring' monitoring and surveying' then
addressing problems found in the surveys.@rgani)ations can gain competitive advantage by
strategically managing the separation process.
Retaliatory reactions to organi)ational discipline
and dismissal decisions can be minimi)ed.
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