I. Managing Turnover A. Why do people leave? B. When is it good? C. When is it not good? D. What are the costs?
MGMT 471: HRMWeek 9: Chapter 10 I. Managing Turnover II. Employee Separation III. Job Withdrawal IV. Job Satisfaction
Truths about Turnover • Turnover happens. • Some turnover is good. • Turnover is expensive. • More money isn’t always the answer. • Managers are key. • To reduce turnover it has to be a priority.
When is it good? Bad? Organizations must take steps to ensure that good performers are motivated to stay, whereas chronically low performers are allowed, encouraged, or if necessary, forced to leave. Two types of turnover: • Involuntary turnover—turnover initiated by the organization (often among people who would prefer to stay). • Voluntary turnover—turnover initiated by employees McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Managing Involuntary Turnover Employment-at-will doctrine termination of an employee with or without a “good or just cause.” Violence in the workplace can be due to involuntary turnover. A standardized, systematic approach to discipline and discharge is essential. McGraw-Hill/Irwin
II. Employee Separation A. Justice 1. Outcome fairness 2. Procedural justice 3. Interactional justice
II. Employee Separation B. Legal issues 1. Wrongful discharge 2. Discrimination 3. Privacy 4. Layoff notification
II. Employee Separation • Discipline and Disputes 1. Progressive--hot stove rule 2. Alternative Dispute Resolution (without legal system)
Progressive Discipline Effective discipline programs have two components: • documentation • progressive corrective measures The organization determines consequences for first, second, third offenses, etc. McGraw-Hill/Irwin
Alternative Dispute Resolution Dispute resolution without the legal system. Four stages: • 1. Open-door policy • 2. Peer reviews • 3. Mediation by a neutral third party • 4. Arbitration by a professional, from outside the organization (binding) McGraw-Hill/Irwin
II. Employee Separation 3. EAPs: Programs that address problems such as employeesubstance abuse or psychological issues. 4. Outplacement Counseling: Helping exiting employee transition
III. Job Withdrawal: Job Dissatisfaction A. Antecedents 1. Personality 2. Tasks and Roles 3. Others 4. Pay
III. Job Withdrawal:Job Dissatisfaction B. Outcomes 1. Behavior change 2. Physical withdrawal 3. Psychological withdrawal
Job Dissatisfaction:Job Withdrawal Process Causes of job dissatisfaction - Personal disposition - Tasks and roles - Supervisors and coworkers - Pay and benefits Manifestations of job withdrawal - Behavioral change - Physical job withdrawal - Psychological job withdrawal Job Dissatisfaction Job Withdrawal McGraw-Hill/Irwin
Physical Withdrawal • Leave the job • Internal transfer • Absenteeism • Tardiness McGraw-Hill/Irwin
Psychological Withdrawal Jobinvolvement: degree to which people identify themselves with their jobs. Organizational commitment: degree to which an employee identifies with the organization and is willing to put forth effort on its behalf. Organizational Citizenship behavior: being a good soldier
IV. Job Satisfaction A. Antecedents 1. Personality 2. Tasks and Roles a. Job complexity b. Meaningful work c. Clear roles
IV. Job Satisfaction A. Antecedents (continued) 1. Others 2. Pay B. Outcomes? C. Measuring and Monitoring