Transcript Lecture-26 on 16 March 2014.ppt

Art of Leadership & Motivation
HRM – 760
Lecture - 26
FACILITATOR
Prof. Dr. Mohammad Majid Mahmood
Leader`s Key Responsibility:
Human Resource Retention
2
Ethical Issue
There are numerous negative organizational consequences
to firing employees, including the discomfort of the
supervisor who delivers the termination information,
conflict or sabotage from the departing employee, and
the potential for a lawsuit.
In response, many supervisors provide problem employees
unpleasant work tasks, reduced working hours, or
otherwise negatively modify their jobs in hopes that the
problem employees will simply quit.
What are the ethical issues raised by this strategy? 3
OUR ASSEST WALK OUT OF THE DOOR
EACH EVENING. WE HAVE TO MAKE SURE
THAT THEY COME BACK THE NEXT
MORNING
4
HR
Critical Findings
One Out of Every Three People
Plan on Leaving in the Next
Two Years
Hay Group, USA
5
It Costs Much More to
Critical Finding
Replace Employees
Than
to Keep Them
6
Challenges Facing Organizations
Worker Shortage
 Skill Shortage
 Talent Management
 Generational
Differences
 Global Competition
 Diversity
 Loyalty

7
What is Employee Retention?
Employee retention is a process in which
the employees are encouraged to remain
with the organization for the maximum
period of time or until the completion of
the project.
 Employee retention is beneficial for the
organization as well as for the employee.

8
Defining HR Retention
“ The extent to which an employee is committed
to their work and their organization, and the
extent to which this commitment impacts their
performance and intent to stay with the
organization.”
“ A positive attitude held by the employee towards
the organisation and its value. An engaged
employee is aware of business contexts and
works with colleagues to improve performance
within the job.”
9
So What is it?
Based on these definitions, HR retention is
the total of the behaviour employees
espouse in the organisation which
primarily should be characterised by:
Belief in the organisation
 Drive to work and make things better
 Respect and support for others
 Desire to learn new skills

10
Retention is Commitment Based
Rational Commitment:


Employees believe they will personally benefit financially, developmentally, or professionally from the
team or organization.
It makes sense for them to stay with the organization.
11
Rational Commitment Driven By:
Remuneration
 Incentives
 Career growth opportunities
 Health benefits
 Work environment
 Learning and development opportunities
 Work-life balance

12
Retention is Commitment Based
Emotional Commitment:


Believing in, valuing, or enjoying their day-to-day work,
teams, managers or organizations.
Because they can make a link between their role and
organizational objectives and value system, and they
enjoy or find fulfillment in the work
13
Emotional Commitment Driven By:





Enjoyment of one’s job
Role clarity
Understanding the link between one’s job and
organisational strategy
Belief in organisational values
Respect in direct manager, team and
organisation
Emotional commitment drives discretionary effort PERFORMANCE
14
Role Based Levels of Retention
There are five work related roles that an employee can assume and these
are:

Job Holder Role: employees come to work and do the job that is listed in
their job description.

Team member role: employees go “above and beyond” to help members of
their team work toward common goals.

Entrepreneur role: employees come up with new ideas and processes and
try to get those ideas implemented.

Career role: employees do things to enhance their career in the
organisation; they learn, they adapt new skills, and more.

Organisation member role: employees do things that promote and help the
company even if it’s not part of their jobs or their team’s duties.
15
Have you ever hired
the wrong person?
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Why Good People Quit?
17
Why Good People Quit
Poor match between the person and the
job
Poor fit with the organizational climate
and culture
Poor alignment between pay and
performance
Poor connections between the individual,
their coworkers, and the supervisor
Poor opportunities for growth and
advancement
18
Hire the Right People
How Do You Know What
the RIGHT Person Looks
Like?
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Typical Hiring Practices






Failure to detect motivational fit with job
Applicants "exaggerate" to get a job
Most hiring decisions made by intuition
during the first few minutes of the interview
Two out of three hires prove to be a bad fit
within the first year
Most interviewers not properly trained
Excellent employees placed in the wrong
jobs grow frustrated when unable to utilize
their strengths
20
Reasons why an employee leaves an
organization
 Monetary factors
 Lack of good working condition No Flexible work schedules.
21
Reasons why an employee leaves an
organization
Lack of respect
 Very Few Supportive colleagues:
Organization is more concern
toward business
Increase in favoritisms
22
Reasons why an employee leaves an
organization
Employee needs pride in where they
work & what they do
Lack of appreciation
Lack of challenges in job
The job or workplace was
not as expected
23
Reasons why an employee leaves an
organization
The Mismatch Between Job and
Person
Too Little Coaching and Feedback
Lack of support
24
Reasons why an employee leaves an
organization
Stress From Overwork and
Work-Life imbalance
 Loss of Trust and
Confidence in Senior Leaders
Less frequency in giving
rewards.
25
Key Finding
Money may attract
people to the front
door but something
else is needed to keep
them from going out
the back.
26
Employee Retention
recommendations
Compensation
Environment
Growth
Relationship
Support
27
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FACILITATOR
Prof. Dr. Mohammad Majid Mahmood