0acb6module 5b
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Amity School of Business
BBA, 5th Semester
HUMAN RESOURCE MANAGEMENT
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MODULE 5:
RETENTION AND
SEPARATION
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CHAPTER CONTENT
Concept of Separation.
Procedure of Separations : Discharge, Retrenchment,Retirement, VRS, Layoff.
Promotion & Transfers.
Exit Interview
Attrition and Retention: Concept, Significance, Determinants
and strategies.
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Attrition/ TURNOVER
Employee turnover is the movement of employees across theboundary of an organization.
Defining Attrition rate: "the rate of shrinkage in size ornumber".
Turnover = (Number of staff leaving per year X 100) /Average number of staff.
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CLASSIFICATION OFTURNOVER
F
unctional Vs. Dysfunctional turnover.
Avoidable Vs. Unavoidable turnover.
Voluntary Vs. Non- voluntary turnover.
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Causes of Voluntary
Turnover
Quit
AlternativesInternal: New job possibilities
External: Job offers+
Desirability of LeavingLow job satisfaction
Shocks to employee
Personal reasons
+
Ease of LeavingFavorable labor market conditions
Low cost of living
+
Intention
to Quit
+
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CONSEQUENCES OFEMPLOYEE TURNOVER
NEGATIVE CONSEQUENCES
Recruitment & Selection costs.
Training & Development costs.
Organizational Disruption.
Demoralization of organizational membership.
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POSITIVE CONSEQUENCES
Increased performance.
Reduction of entrenched conflict.
Increased mobility & morale.
Innovation & adaptation.
CONSEQUENCES OFEMPLOYEE TURNOVER
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REASONS FOR ATTRITION
Monetary factors.
Lack of good working condition.
No flexible work schedule. Lack of support & respect.
Increase in favoritism.
Lack of appreciation.
Lack of challenge Mismatch between job and person.
Lack of feedback.
Stress from work & work-life imbalance.
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Organizational Practices ThatReduce Turnover
1) Frequently measure job satisfaction through surveys such asthe Job Descriptive Index.
One problem with job satisfaction surveys is that the leastsatisfied employees are not likely to respond to the survey.
Because they have already started to withdraw from theorganization, so they see little personal benefit incompleting the survey.
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2) Another method for retaining employees is throughsocialization
, this is the process of acquiring the knowledgeand behaviors needed to be a member of an organization.
Effective socialization occurs when employees are givencritical information that helps them understand theorganization. Such as the new employee orientation session.
As employees acquire information during the socializationprocess, their feelings of fit with the organization increase &thereby they are more likely to stay with an organization.
3) Perceived organizational support is another factor that
influences employee turnover. This is the beliefs, by the employees, that the organization
values their contribution and cares about their well-being.
Employees who perceive greater support are more committedto sticking with the organization and feel a stronger desire to
help the organization succeed.
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Employee Retention Employee Retention involves taking measures to encourage
employees to remain in the organization for the maximumperiod of time.
Hiring knowledgeable people for the job is essential for anemployer. But retention is even more important than hiring.
Employee retention is a process in which the employees areencouraged to remain with the organization for the
maximum period of time or until the completion of theproject.
Employee retention is beneficial for the organization as wellas the employee
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EMPLOYEE RETENTIONEmployee retention involves 5 major things:
Compensation
Environment
Growth
Relationship
Support
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IMPORTANCE OFEMPLOYEE RETENTION
The cost of turnover.
Loss of company knowledge.
Loss of company knowledge.
Interruption of customer services.
Interruption of customer services.
Turnover leads to more turnovers.
Turnover leads to more turnovers. Goodwill of Company.
Goodwill of Company.
Regaining efficiency.
Regaining efficiency.
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Retention tools Employee reward program
Career Development Program
Performance based Bonus Employee Referral Plan
Loyalty Bonus
Giving a voice to the Knowledge Banks
Employee Recreation
Gifts at some Occasions Making the managers effective and easily accessible
Increasing the organizations level of professionalism
Ensuring a match between authority and accountability
Designing a competitive compensation package
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Retention
Strategy
EmployeeRecreation
Accountability
Loyaltybonus
EmployeeReferralprogram
AppraisalObjective &Succession
planning
Flexible workarrangementsDiversity
Training
EmployeeReward
programs
CareerDevelopment
programPerformance
Based
bonus
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Various Retentionstrategies followed by
MNCs
Procterand Gamble India -Early responsibilities in careerFlexible and transparent organizational culture Globalopportunities through a variety of exposure and diverseexperiences Performance Recognition
American Express (India)- Strong global brand Value-basedenvironment Pioneer in many people practices NTPCLearning and growth opportunities Competitive rewardsOpportunity to grow, learn and implement Strong socialsecurity and employee welfare performance- oriented culture
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Johnson & Johnson -Strong values of trust, caring fairness,and respect within the organization Freedom to operate atwork Early responsibility in career Training and learningopportunities Visible, transparent and accessible leadersCompetitive rewards Innovative Human Resource programs
and practices
Glaxo Smith Kline Consumer Healthcare -Performance-driven Rewards Its belief in Growing our own timberComprehensive development and learning programs Flatorganization, where performance could lead to very quickprogression Challenging work context Competitive rewardsExhaustive induction and orientation program