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HRD 24 Mathis 12e Ch03 Sh Organization Individual Relations and Retention

The document discusses the importance of individual and organizational relationships, focusing on the psychological contract and factors affecting employee commitment and job satisfaction. It highlights the components of individual performance, motivation strategies, and the myths surrounding employee retention. Additionally, it addresses absenteeism and turnover, including their types, impacts, and measurement metrics.

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3 views17 pages

HRD 24 Mathis 12e Ch03 Sh Organization Individual Relations and Retention

The document discusses the importance of individual and organizational relationships, focusing on the psychological contract and factors affecting employee commitment and job satisfaction. It highlights the components of individual performance, motivation strategies, and the myths surrounding employee retention. Additionally, it addresses absenteeism and turnover, including their types, impacts, and measurement metrics.

Uploaded by

mydecember14
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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CHAPTER

CHAPTER 33
Organization/Individual
Organization/Individual
Relations
Relations and
and Retention
Retention

PowerPoint
PowerPoint Presentation
Presentation by
by Charlie
Charlie Cook
Cook
©
© 2008
2008 Thomson/South-Western
Thomson/South-Western All
All rights
rights reserved.
reserved.
The
The University
University of
of West
West Alabama
Alabama
Individual/Organizational
•Relationships
The Psychological Contract
The unwritten expectations employees and employers
have about the nature of their work relationships.
Affected by age of employee and changes in
economic conditions.
Focuses on expectations about “fairness” that may
not be defined clearly by employees.
• Psychological Ownership
When individuals feel that they have some control and
perceived rights in the organization, they are more
likely to be committed to the organization.

© 2008 Thomson/South-Western. All rights reserved. 3–2


Components of the Psychological
Contract
Employers provide: Employees contribute:

• Competitive • Continuous skill


compensation and improvement and increase
benefits productivity
• Flexibility to balance work • Reasonable time with the
and home life organization
• Career development • Extra effort when needed
opportunities

© 2008 Thomson/South-Western. All rights reserved. 3–3


Job Satisfaction, Loyalty, and
•Commitment
Job Satisfaction
 A positive emotional state resulting from evaluating
one’s job experience.
• Organization Commitment (Loyalty)
 The degree to which employees believe in and accept
organizational goals and desire to remain with the
organization.
 Continuance commitment: the likelihood that an
individual will stay with rather than withdraw from the
organization.

© 2008 Thomson/South-Western. All rights reserved. 3–4


Individual Employee Performance

• Individual Performance Factors


1. Individual ability to do the work
2. Effort level expended
3. Organizational support

Performance (P) = Ability (A) x Effort (E) x Support (S)

© 2008 Thomson/South-Western. All rights reserved. 3–5


FIGURE 3-2 Components of Individual Performance

© 2008 Thomson/South-Western. All rights reserved. 3–6


Individual Motivation
• Motivation
 The desire within a person causing that person to act
to reach a goal.
• Management Implications for Motivating
Individual Performance
 Broad-based strategies and tactics to address
individual employee concerns about:
 Consistency in organizational rewards
 Organizational support for employee efforts
 Accurate measurement of employee performance
 Desirability of rewards by employees

© 2008 Thomson/South-Western. All rights reserved. 3–7


Retention of Human Resources
• Myths About Retention
1. Money is the main reason people
leave.
2. Hiring has nothing to do with
retention.
one
3. If you train people, you are only I ’m G

training them for another employer.


4. Do not be concerned about retention
during a merger.
5. If solid performers want to leave, the
company cannot hold them.
© 2008 Thomson/South-Western. All rights reserved. 3–8
Retention of Human Resources
• Why People Stay or Leave—Links, Fit, and
Sacrifice
 Culture and values
 Positive,
distinctive company that is well-managed,
and offers exciting challenges.
 Attractive job
 Freedom and autonomy, exciting challenges, and
career advancement and growth
 Compensation and lifestyle
 Differentiated pay package, high total
compensation, geographic location, and respect for
lifestyle

© 2008 Thomson/South-Western. All rights reserved. 3–9


FIGURE 3-3 Drivers of Retention

© 2008 Thomson/South-Western. All rights reserved. 3–10


FIGURE 3-4 Some Characteristics of People and Jobs

© 2008 Thomson/South-Western. All rights reserved. 3–11


Employee Absenteeism
• Absenteeism
 Any failure to report for work as scheduled
or to stay at work when scheduled.
 Involuntary absenteeism
 Unavoidable with understandable cause
(e.g., actual illness)
 Voluntary absenteeism
 Avoidable without justifiable
cause (e.g., feigning illness)

© 2008 Thomson/South-Western. All rights reserved. 3–12


Controlling Absenteeism

Positive
Disciplinary
reinforceme
approach
nt

Controlling
Absenteeis
m

Paid time- Combination


off (PTO) approach

“No fault”
policy

© 2008 Thomson/South-Western. All rights reserved. 3–13


Employee Turnover
• Turnover
 The process in which employees leave an
organization and have to be replaced.

• Impact of Turnover
 Inability to achieve business goals

 Loss of “image” to attract other individuals

 High costs of turnover and replacement


 Churn—hiring new workers while laying off others

© 2008 Thomson/South-Western. All rights reserved. 3–14


Types of Turnover

Involuntary

Controllabl
Voluntary
e

Turnover

Uncontrollabl
Functional
e

Dysfunctio
nal

© 2008 Thomson/South-Western. All rights reserved. 3–15


HR Metrics: Measuring Turnover
• Computing the Turnover Rate:
Number of employee separations during the month
100
Total number of employees at midmonth

• Costs of Turnover
Separation costs
Replacement costs
Training costs
Hidden costs

© 2008 Thomson/South-Western. All rights reserved. 3–16


FIGURE 3-8

Managing
Retention

© 2008 Thomson/South-Western. All rights reserved. 3–17

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