Chapter 7 Control Voluntary Turnover-Organizational Management

NEW EMPLOYEES

"New Blood" revitalizes things with new ideas techniques.

PATH 2

A shock prompts a person to reconsider his or her basic attachment to the organization because of violations to one's basic values, personal or professional goals and/or plan s for goal attainment (images). After completing these mental deliberations a person leaves the organization without searching for work alternatives. Job satisfaction is largely irrelevant because they are leaving due to the shock itself. (Someone new hired in at a higher rate)

PATH 3

A shock provokes a person to consider whether the attachment could form with another organization because of violations to one's basic values, personal or professional goals, and/or plan for goal attainment. Mental deliberations due to the shock and violations lead individual to search and evaluate other job opportunities. Job Satisfaction may or may not be a factor. (A co-worker leaves and you decide to try a new path as well)

PATH 1

A shock triggers a person to use a pre-existing action plan (script) with minimal mental deliberations, and little consideration of organizational attachment. Job satisfaction is irrelevant. (Got into Grad School so I quit)

SHOCK

An external to the person event that causes the employee to think of leaving

IMPORTANCE OF WORKFORCE STABILITY

Are replacement employees readily available? Can the job specific knowledge and skills be readily taught? Knowledge is critical to organizational Effectiveness. An Organizations success becomes dependent on relationships and work connections outside the organization.

JOB EMEDDEDNESS

Broad array of factors that influence a person's staying on the job

SHOCK CHARACTERISTICS

Can be negative or positive, expected or unexpected, and organization related or personal

SACRIFICE

Captures the perceived losses that individuals may suffer when leaving their job (loss of retirement benefits)

UNFOLDING MODEL OF TURNOVER

Describes multiple quitting processes, includes non-cognitive and external to the person factors, and explains how relative job satisfaction can prompt an employees departure.

JOB PERFORMANCE

Determined by the a job analysis and often operationalized by the content of the firm's employee evaluation form. Observable work behaviors, measurable employee actions, supervisory judgements, tangible work outputs, or revenues generated.

EMPLOYEE TURNOVER

Employee turnover is not necessarily good or bad just needs to be managed by knowing why the employees leave.

GLOBAL WITHDRAWAL COGNITIONS

Factors like thoughts of quitting, expected utility of job search, cost of quitting, intention to search, and evaluation of alternative jobs

TECHNIQUE OF THE MODEL

Gather examples of shocks from leavers and then ask current employees how they would react if it happened to them.

APPROACH 1: WHAT TO MONITOR SECOND

Global Withdrawal Cognitions

HOW TO INCREASE JOB IMBEDEDNESS

Hire employees who are already have established organizational ties, integrate them in the social fabric of the organization, and influence through proper management techniques.

BENEFITS OF EMBEDEDNESS

Improved Employee Retention, Positive Reputation , Word of Mouth Advertising, and favorable Public Relations

EMPLOYEE WITHDRAWAL

Increased Absenteeism, less helpful to co-workers, poor job performance, and fewer citizenship behaviors

TURNOVER

Increases cost of staffing, training, and general administration. It disrupts a business unit's operations and increases the workload of remaining employees. Should be carefully managed rather than minimized.

APPROACH 4

Is Turnover Functional and Avoidable? What is the Turnover Circumstances Telling Us?

HOW TO CONTROL TURNOVER-CONCLUSION

Is selective retention important in your firm? Is the quitting functional and avoidable? Monitor job attitudes and job embededness. Look for possible shocks. Determine whether the employee will leave quickly (which path). Gather routine information from surveys and by walking around.

APPROACH 1: WHAT TO MONITOR FIRST

Job Attitudes

TRADITIONAL THEORY OF TURNOVER

Job dissatisfaction leads to job search behaviors and the evaluation of alternative employment, this sets the stage for the employee leaving.

PATH 4

Job satisfaction provokes thoughts of leaving leading to long job search...more predictable and slower

HOW AN EMPLOYEE MAY BE EMBEDDED

Link, Fit, and Sacrifice

MARGINAL PERFORMERS

Minimize a firms productivity but they are not "bad enough" to fire.

FOUR APPROACHES TO UNDERSTANDING THE TURNOVER PROCESS

Monitor job attitudes and withdrawal cognitions, Monitor shocks and paths, Monitor the reason for staying, and Monitor the the circumstances of the turnover

APPROACH 3

Monitor the reasons for staying in addition to the reasons for leaving

EXPECTED SHOCKS

More likely to be positive and personal and lead to unavoidable leaving

NEGATIVE SHOCKS

More likely to be work related, associated with dissatisfaction, affect others and leads to avoidable leaving

EXTRA ROLE PERFORMANCE

Non job specific effort, behavior, and performance but still benefits the larger firm

LINK

Refers to employees formal and informal connections to other individual or institutions

FIT

Refers to the extent to which employees jobs and communities are compatible with their personal values, goals, and plans.

SHOULD TURNOVER BE ENCOURAGED OR DISCOURAGED?

Remains the manager's decision whether dysfunctional turnover should be discouraged, whether functional turnover should be encouraged, and whether such turnover is also avoidable or unavoidable. Focus the manager on differentiating the people they want to keep or lose.

EXCEPTION-02

Selective retention is less critical in temporary organizations that will disband by design.

EXCEPTION-01

Selective retention is less important in situations where workforce stability is less important.

WHAT TO MONITOR IN THE MODEL

Shocks, Paths, Job Attitudes, and Global Withdrawal Cognitions

HOW TO MONITOR JOB ATTITUDES

Surveys and Management by Wandering Around (MBWA)

APPROACH 2

The Unfolding Model of Turnover

ORGANIZATIONAL COMMITMENT

The lower the employees job satisfaction the lower the organizational commitment.

EMBEDEDNESS

The more embedded they are the less likely they will be to quit. Considers on-the-job and off-the-job in reference to link, fit, and sacrifice and it is also contagious.

PATH SPEED

The speed with which the four paths unfold. Should vary systematically with the path they are on. Does it require a job search or is it more immediate?

APPROACHES

Traditional Theory Shocks and Paths Monitor Reasons for Leaving Voluntary vs Involuntary Turnover