Human Resource Management - QTRE303

Chapter 8 Separating and Retaining

Employees

Instructor: Vũ Thị Đan Trà; Email: [email protected]

 Chapter objectives
▪ Distinguish between involuntary and voluntary turnover, and describe
their effects on an organization.
▪ Discuss how employees determine whether the organization treats
them fairly.
▪ Identify legal requirements for employee discipline.
▪ Summarize ways in which organizations can fairly discipline
employees.
▪ Explain how job dissatisfaction affects employee behavior.
▪ Describe how organizations contribute to employees’ job satisfaction
and retain key employees.

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 8.1 Managing Voluntary and Involuntary Turnover
Distinguish between involuntary and voluntary turnover and describe their effects on an organization.

▪ To compete effectively, organizations must take steps to ensure that

good performers are motivated to stay with the organization, whereas
chronically low performers are allowed, encouraged, or if necessary,
forced to leave.
▪ Both of these challenges involve employee turnover, that is,
employees leaving the organization
▪ The two types of turnover are:
▪ Involuntary turnover—turnover initiated by the organization (often among
people who would prefer to stay).
▪ Voluntary turnover—turnover initiated by employees

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 8.1 Managing Voluntary and Involuntary Turnover
Distinguish between involuntary and voluntary turnover, and describe their effects on an organization.

Cost associated with turnover (p.334)

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8.2. Employee Separation
Discuss how employees determine whether the organization treats them fairly.

▪ Principles of justice

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8.2. Employee Separation

▪ The employment-at-will doctrine is a policy that allows for

termination of an employee with or without a “good or just cause.”
▪ Violence in the workplace caused by involuntary turnover has
become a major organizational problem in recent years.
▪ A standardized, systematic approach to discipline and discharge is
necessary.

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8.2 Employee Separation
Discuss how employees determine whether the organization treats them fairly.

▪ Principles of justice
▪ Outcome Fairness A judgment that the consequences given to employees are just.
▪ Procedural Justice A judgment that fair methods were used to determine the consequences an
employee receives.
▪ Interactional Justice A judgment that the organization carried out its actions in a way that took the
employee’s feelings into account.

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8.3. Employee Separation: Legal Requirements
Identify legal requirements for employee discipline.

▪ Wrongful discharge
▪ Discrimination
▪ Employees’ privacy
▪ Measures for Protecting Employees’ Privacy

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 8.4. Employee Separation: Notification of Layoffs
Summarize ways in which organizations can discipline employees fairly.

▪ Progressive Discipline A formal discipline process in which the consequences become

more serious if the employee repeats the offense.
▪ Progressive Discipline Response

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 8.4. Employee Separation: Notification of Layoffs
Summarize ways in which organizations can discipline employees fairly.

▪ Progressive Discipline A formal discipline process in which the consequences become

more serious if the employee repeats the offense.
▪ Effective discipline programs have two central components:
▪ documentation
▪ progressive punitive measures

▪ The organization determines responses for first, second, third offenses, and so on .

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 8.4. Employee Separation: Notification of Layoffs
Summarize ways in which organizations can discipline employees fairly.

▪ Alternative Dispute Resolution (ADR): Methods of solving a problem by bringing in an

impartial outsider but not using the court system.

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 8.4. Employee Separation: Notification of Layoffs
Summarize ways in which organizations can discipline employees fairly.

▪ Alternative Dispute Resolution

▪ This is a method of resolving disputes that does not rely on the legal system.
▪ The four stages of ADR are:
▪ 1. Promote an open-door policy (an organization’s policy of making managers available to hear
complaints
▪ 2. Perform peer reviews by individuals at the same level in the organization.(Peer review: process for
resolving disputes by taking them to a panel composed of representatives from the organization at the
same levels as the people in the dispute)
▪ 3. Mediation by a neutral third party.(Nonbinding process in which a neutral party from outside the
organization hears the case and tries to help the people in conflict arrive at a statement)
▪ 4. Arbitration by a professional, from outside the organization.

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 8.4. Employee Separation: Notification of Layoffs
Summarize ways in which organizations can discipline employees fairly.

▪ Employee Assistance Programs (EAP) A referral service that employees can use to seek
professional treatment for emotional problems or substance abuse.
▪ Outplacement Counseling A service in which professionals try to help dismissed employees
manage the transition from one job to another..
▪ Can be performed in-house or through an outside source.
▪ It is aimed at helping people realize that losing a job is not the end of the world and that other
opportunities exist.

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8.5. Employee Engagement

▪ Ideally, an organization does not merely want employees to come to work each day but rather
wants employees to be fully engaged.
▪ Employee engagement is the degree to which employees are fully involved in their work and
the strength of their commitment to their job and company.
▪ Employees who are engaged in their work and committed to the company they work for
provide a clear competitive advantage to that firm, including higher productivity, better
customer service, and lower turnover.

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8.6. Job withdrawal

▪ Job Withdrawal A set of behaviors with which employees try to avoid the work situation
physically, mentally, or emotionally.
▪ Job withdrawal results when circumstances such as the nature of the job, supervisors and co-
workers, pay levels, or the employee’s own disposition cause the employee to become
dissatisfied with the job (job dissatisfaction).

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8.6. Job withdrawal
Job dissatisfaction

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8.6. Job withdrawal
Explain how job dissatisfaction affects employee behavior.
▪ Personal Dispositions
▪ Negative affectivity - a term used to describe a dispositional dimension that reflects pervasive individual
differences in satisfaction with any and all aspects of life.
▪ Core self-evaluation are bottom-line opinions individuals have of themselves and may be positive and negative.
People with negative core self-evaluation tend to blame other people for their problems, including their
dissatisfying jobs.

▪ Tasks and Roles

▪ Job enrichment - referring to a specific way to add complexity and meaningfulness to a person's work.
▪ Job rotation - the process of systematically moving a single individual from one job to another over the course
of time.
▪ Role - what an organization expects from an employee.
▪ Role ambiguity - the level of uncertainty about what the organization expects from the employee in terms of
what to do or how to do it.
▪ Role conflict - the recognition of incompatible or contradictory demands by the person who occupies the role.
▪ Role overload - a state in which too many expectations or demands are placed on the person.
▪ Role-analysis technique - enables a role occupant and other members of the role occupant’s role set to specify
and examine their expectations for the role occupant
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8.6 Job withdrawal
Other reasons: supervisors and coworkers; pay and benefits

▪ Supervisors and Coworkers

▪ A person may be satisfied with his or her supervisor and coworkers for one
of three reasons:
▪ shared values, attitudes, and philosophies,
▪ strong social support,
▪ help in attaining some valued outcome.

▪ Pay and Benefits

▪ For many people, pay is a reflection of self worth, so pay satisfaction takes
on critical significance when it comes to retention.

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8.6 Job withdrawal
Other reasons: Behavior Change

▪ An employee's first response to dissatisfaction would be to try to

change the conditions that generate the dissatisfaction.
▪ When employees are unionized, dissatisfaction leads to an increased
number of grievances.
▪ Employees sometimes initiate change through whistle-blowing -
making grievances public by going to the media.
▪ Employees can sue their employers when the disputed policies relate
to an aspect of employment that is covered by legislation.

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8.6 Job withdrawal
Other reasons: Physical job withdrawal

▪ There are several ways a dissatisfied worker can physically

withdrawal from the organization:
▪ Leave the job
▪ Internal transfer
▪ Absenteeism
▪ Tardiness

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8.6. Job withdrawal
Other reasons: Psychological withdrawal

▪ If the primary dissatisfaction has to do with the job itself, the

employee may display a very low level of job involvement, which is
the degree to which people identify themselves with their jobs.
▪ If the dissatisfaction is with the employer as a whole, the employee
may display a low level of organizational commitment, which is the
degree to which an employee identifies with the organization and is
willing to put forth effort on its behalf.

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8.7 Job satisfaction
Describe how organizations contribute to employees’ job satisfaction and retain key employees.

▪ Job Satisfaction A pleasant feeling resulting from the perception that one’s job fulfills or
allows for the fulfillment of one’s important job values.
▪ Three important aspects of job satisfaction are:
▪ Values – what a person consciously or unconsciously desires to obtain
▪ Perceptions (not always on an objective and complete measurement of the situation), and
▪ importance.

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8.7. Job satisfaction
Describe how organizations contribute to employees’ job satisfaction and retain key employees.

▪ People will be satisfied with their jobs as long as they perceive that
their jobs meet their important values.
▪ Organizations can contribute to job satisfaction by addressing the
four sources of job dissatisfaction we identified earlier: personal
dispositions, job tasks and roles, supervisors and co-workers, and
pay and benefits.
▪ Personal Dispositions
▪ Tasks and Roles: Job Complexity, Meaningful Work, Clear and
Appropriate Roles
▪ Supervisors and Co-Workers
▪ Pay and Benefits

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8.7. Job satisfaction
Describe how organizations contribute to employees’ job satisfaction and retain key employees.

▪ Monitoring Job Satisfaction

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8.7. Job satisfaction
Describe how organizations contribute to employees’ job satisfaction and retain key employees.

▪ Role analysis technique: a process of formally identifying expectations associated

with a role.
Steps in the role analysis techniques:
1. Members of role set write expectations for role
2. Members of role set discuss expectations
3. Preliminary list of role’s duties and behaviors
4. Role occupant lists expectations for other in role set
5. Members of role set discuss expectations and read consensus on occupant’s role
6. Modified list of role’s duties and behaviors

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