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Human Resource Management ELEVENTH EDITON


5- retention evaluation and follow up The Retention Management Process Human Resource Management ... minimizing layoff policy ... Absenteeism Survey, CCH Human ... – PowerPoint PPT presentation

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Title: Human Resource Management ELEVENTH EDITON

Human Resource Management ELEVENTH EDITON
SECTION 1 Nature of Human Resource Management
Robert L. Mathis ? John H. Jackson
Chapter 3
  • Organizational / Individual Relations and

PowerPoint Presentation by Dr. Zahi Yaseen
Organizational / Individual Relations and
  • After you have read this chapter, you should be
    able to
  • Identifying the changing nature of the
    psychological contract
  • Describe different kinds of absenteeism and
  • Explain two ways to measure of absenteeism and
  • Discuss how motivation is linked to individual
  • List the five major drivers of retention and
    activities related to them
  • Outline the steps in managing retention

Organizational / Individual Relations and
  • 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.
  • Employers provide
  • Competitive compensation and benefits
  • Career development opportunities
  • Flexibility to balance work and home life
  • Employees contribute
  • Continuous skill improvement
  • Reasonable time with the organization
  • Extra effort when needed

Individuals, jobs, and effective HR
management Chapter 3
  • Individual/ organizational relationships
  • Im just waiting for the economy to get better,
    and Im out of here
  • - The psychological contract The unwritten
    expectations employees and employers have about
    the nature of their work relationships. Both
    tangible items wages, salaries, benefits..) and
    intangible items loyalty, fair treatment, job
    security are encompassed by unwritten contracts
    between employees and their employers .

Individuals, jobs, and effective HR
management Chapter 3
  • The psychological contract components
  • Employer provide Employees
  • competitive compensation continuous skill
  • and benefits. And
    increased productivity
  • flexibility to balance work reasonable time
    with the
  • and home life.
  • Career development Extra effort
    when needed
  • opportunities.

Job Satisfaction, loyalty, and commitment
  • Job Satisfaction
  • A positive emotional state resulting from
    evaluating ones job experience. Job
    dissatisfaction occurs when ones expectations
    are not met.
  • Loyalty
  • more than just satisfied with your job, you
    are pleased with the relationship with your
  • Organization Commitment
  • The degree to which employees believe in and
    accept organizational goals and desire to remain
    with the organization.

Factors Affecting Job Performance and
Organizational Commitment
Absenteeism Turnover
  • Any failure to stay at work as scheduled.
  • Involuntary absenteeism
  • Unavoidable with understandable cause ( eg
    actual illness)
  • Voluntary absenteeism
  • Avoidable without justifiable cause (e.g.,
    claiming illness)
  • Measuring Absenteeism
  • Reasons for Absenteeism lost wages, benefits,
  • Or replacement..

Reasons for Unscheduled Absences
Personal Needs 18
Family issues 22
entitlement Mentality 13
Personal illness 36
stress 11
Source Based on data from CCH Absenteeism
Survey, CCH Human Resources Management, November
1, 2003.
Job Satisfaction, loyalty, and commitment
Employee Turnover
  • The process in which employees leave the
    organization and have to be replaced.
  • Types of Turnover
  • Involuntary turnover --
    Voluntary turnover Employees are terminated for
    poor Employees leave by choice
  • performance, or work rule violence
  • _ Functional Turnover --
    Dysfunctional turnover
  • lower performing, or disruptive key
    individuals and high
  • employees leave.
    Performers leave at critical
  • _ Uncontrollable Turnover --
    Controllable turnover
  • Employees leave for reasons
    Employees leave for reasons
  • outside the control of the employer that
    could be influenced by

  • the employer

Measuring Turnover
  • Ways in which to measure turnover
  • Job and job levels Department, units, and
  • Reason for leaving Length of service
  • Demographic characteristics
  • Education and training
  • Knowledge, skills and abilities
  • Performance ratings/levels
  • Computing the turnover rate

Individual Employee Performance
  • Individual ability to do the work
  • Effort level expended
  • Organizational support
  • Performance (P) Ability (A) x Effort (E) x
    Support (S)
  • Individual Motivation
  • The desire within a person causing that person to
    act to reach a goal. The need for comprehensive
    strategies and tactics to address both equity and
    expectations of employees.

Components of Individual Performance
Retention of Human Resources
  • Why People Stay
  • Great company
  • Value and culture, well-managed, and offers
    exciting challenges
  • Great 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

Drivers of Retention
  • What employers can do to retain employees?
  • 1- positive culture many firms uses culture
    to retain their employees employer of choice,
    great work environment.
  • 2- effective management visionary quality of
    organizational leadership. Clearly established
  • 3- job security contract, minimizing layoff
    policy, effective management through change.

Drivers of Retention
  • Job design and work
  • job/person matching
  • Time flexibility
  • Work/life balancing
  • .
  • Career opportunities
  • Training/development
  • and mentoring
  • Career planning/
  • And advancing
  • Characteristics of the
  • employer
  • Culture and values
  • Effective management
  • Job security

  • employee relationships
  • Fair, non discriminatory
  • treatment
  • Supervisory/
  • Management support
  • co- worker relations
  • Rewards
  • Competitive pay
  • And benefits
  • Performance and
  • Compensation
  • Recognition

Management Retention
  • Retention measurement and assessment
  • 1- Absence / turnover measurement
  • 2- employee surveys identify employee needs
    and feelings toward the organizational HR
  • 3- exit interviews give their reasons for
    leaving the org
  • 4- data analysis attempt to get at the cause
    of retention
  • problems.
  • 5- retention evaluation and follow up

The Retention Management Process