hrm10echap03- individual performance and retention

7/30/2019 HRM10eChap03- Individual Performance and Retention

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Human Resource

ManagementTENTH EDITON

2003 Southwestern College Publishing. All rights reserved. PowerPoint Presentationby Charlie Cook

Individual Performance

and Retention

SECTION 1Nature of

Human

ResourceManagement

Chapter 3

Robert L. Mathis John H. Jackson


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2002 Southwestern College Publishing. All rights reserved. 32

Learning Objectives

After you have read this chapter, you should beable to:

Discuss how motivation is linked to individualperformance.

Identify the changing nature of the psychologicalcontract.

Describe several types of absenteeism andturnover.

List the five major retention determinants andidentify activities related to them.

Outline the retention management process and howto measure and assess turnover.


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Individual Employee Performance

Individual Performance Factors Individual ability to do the work

Effort level expended

Organizational support

Performance (P)=Ability(A)x Effort (E)x Support(S)


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Components o f Ind iv idual Performance

Figure 31


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Individual Motivation

Motivation The desire within a person causing that person to

act to reach a goal.

Maslows Hierarchy of Needs

Categories of needs that ascend in order; lowerneeds must be fulfilled before person will strive tomeet higher needs. Physiological needs

Safety and security needs

Belonging and love needs

Esteem needs

Self-actualization needs


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Individual Motivation (contd)

Herzbergs Motivation/Hygiene Theory Motivatorsaccount for job satisfaction and

motivation Achievement Recognition Work itself

Responsibility Advancement Hygiene factorscause dissatisfaction with work

Interpersonal relationships

Company policy/administration

Supervision Salary Working conditions


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Equity as a Motivator

Equity The perceived fairness of what the person does

compared to what the person receives.

The perception of the fair value of rewards

(outcomes) for efforts (inputs) that individualsmake when comparing their results to others in theorganization.

OutcomesInputs

OutcomesInputs

Other

Other

Individual

Individual



Expectancy Theory

Expectancy Individuals base decisions about their behaviors on

their expectations that one or another behaviors ismore likely to lead to needed or desired outcomes.

Effort-to-Performance Expectations Belief in the ability to perform the task well

Performance-to-Reward Linkage Belief that high performance will result in receiving

rewards

Value of Rewards

The rewards have value to the individual



Simpl i f ied Expectancy Model of Mot ivat ion

Figure 32



Management Implications for

Motivating Performance

The need for comprehensive strategies and tactics toaddress both equity and expectations of employees.

The provision of training to encourage high

performance. The development of evaluation methods that properly

appraise and reward performance.

An understanding of what kinds of rewards are

desired and valued by employees.


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Individual/Organizational Relationships

The Psychological Contract The unwritten expectations employees and

employers have about the nature of their workrelationships. 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


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Job Satisfaction and

Organizational Commitment

Job Satisfaction

A positive emotional state resulting from evaluatingones job experience.

Organization Commitment The degree to which employees believe in and

accept organizational goals and desire to remainwith the organization.


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Factors Affect ing Job Performance

and Organizational Comm itment

Figure 33


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Absenteeism

Involuntary absenteeism Unavoidable with understandable cause (e.g., actual

illness)

Voluntary absenteeism Avoidable without justifiable cause (e.g., feigning

illness)

Measuring absenteeism

100days)workof(Numberemployees)ofnumber(Average

periodduringabsencejobghlost throudays-personofNumber


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Reasons for

Unscheduled

Absences

Figure 34

Source: Based on data from CCH Absenteeism Survey, CCH

Human Resources Management, November 1, 2000.


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Controlling Absenteeism

Disciplinary approach Increasingly severe disciplinary action leadingeventually to dismissal

Positive reinforcement Rewarding attendance with prizes and

bonuses

Combination approach Use of both discipline and rewards to motivateemployee attendance.

No faultabsenteeism Reasons for absence do not matter.

Absenteeism in excess on normal limits cantrigger disciplinary action and lead toeventually to dismissal

Paid time-off programs Time-off is not categorized by type. Absencesin excess of employer-paid time-off areunpaid.


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Turnover

The process in which employees leave theorganization and have to be replaced.

Types of Turnover Involuntary turnoverterminations for poor

performance or work rule violations.

Voluntary turnoveremployee leaves the

organization by choice.


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Turnover Types

Functional turnover Lower-performing or disruptive employeesleave the organization.

Dysfunctional turnover Key individuals and high performers leave atcritical times.

Uncontrollable turnover Occurs for reasons outside the impact of theorganization.

Controllable turnover Occurs due to factors that could be

influenced by the employer


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Retention of Human Resources

Impact of Retention Failure Inability to achieve business goals

Loss of image to attract other individuals

High costs of turnover and replacement


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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


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Most Common Reasons Why

Emp loyees Voluntar ily Leave

Figure 35

Source: Based on 2000 SHRM Retention Practices Survey(Alexandria, VA:

Society for Human Resource Management, 2000). Permission requested.


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Retention

Determinants

Figure 36


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Desired Organizat ional Character ist ics

Figure 37

Source: The Right Communiqu, First

Quarter 2001, 7. Used with permission


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Work Schedule Flexib i l i ty

Figure 38

Source: Based on 2000 SHRM Retention Practices Survey(Alexandria, VA:

Society for Human Resource Management, 2000). Permission requested.


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The Retention

Management

Process

Figure 39


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The Retention Management Process

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:

100midmonthatemployeesofnumberTotal

monththeduringsseparationemployeeofNumber


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Simplified Turnover Costing Model

Figure 310


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Costs of Turnover Hiring costs Training costs

Productivity costs Separation costs

Employee Surveys

Attitude surveyfocuses on employees feelingsand beliefs about their jobs and the organization.

Exit Interviews

An interview in which individuals are asked toidentify reasons for leaving the organization.


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2002 So th estern College P blishing All rights reser ed 3 29


Retention Interventions Provide realistic job previews during the recruitingprocess

Improve the selection process so that there is a

better person-job fit for new hires Conduct effective job orientation and initial training

Offer competitive, fair, and equitable compensation

Provide an adequate benefits package

Offer career development and training Engage in fair and nondiscriminatory employee

relations

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