Human Resource Management ELEVENTH EDITON

1
Human ResourceManagement ELEVENTH EDITON
SECTION 1Nature ofHuman ResourceManagement
Robert L. Mathis ? John H. Jackson
Chapter 3

• Organizational / Individual Relations and
  Retention

PowerPoint Presentation by Dr. Zahi Yaseen
2
Organizational / Individual Relations and
Retention

• 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
  turnover
• Explain two ways to measure of absenteeism and
  turnover
• Discuss how motivation is linked to individual
  performance
• List the five major drivers of retention and
  activities related to them
• Outline the steps in managing retention

3
Organizational / Individual Relations and
Retention

• 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

4
Individuals, jobs, and effective HR
managementChapter 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 .

5
Individuals, jobs, and effective HR
managementChapter 3

• The psychological contract components
• Employer provide Employees
  contribute
• competitive compensation continuous skill
  improvement
• and benefits. And
  increased productivity
• flexibility to balance work reasonable time
  with the
• and home life.
  Organization.
• Career development Extra effort
  when needed
• opportunities.

6
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
  employer.
• Organization Commitment
• The degree to which employees believe in and
  accept organizational goals and desire to remain
  with the organization.

7
Factors Affecting Job Performance and
Organizational Commitment
Absenteeism Turnover
8
Absenteeism

• 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,
  overtime
• Or replacement..

9
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.
10
Job Satisfaction, loyalty, and commitment
11
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
  

12
Measuring Turnover

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

13
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.

14
Components of Individual Performance
15
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

16
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
  goals.
• 3- job security contract, minimizing layoff
  policy, effective management through change.

17
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

Retention

• employee relationships
• Fair, non discriminatory
• treatment
• Supervisory/
• Management support
• co- worker relations

• Rewards
• Competitive pay
• And benefits
• Performance and
• Compensation
• Recognition

18
Management Retention

• Retention measurement and assessment
• 1- Absence / turnover measurement
• 2- employee surveys identify employee needs
  and feelings toward the organizational HR
  activities.
• 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

19
The Retention Management Process