FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT 5TH Ed.RA Noe, JR Hollenback, B. Gerhart, PM Wright

1. Separating and Retaining
Employees
FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT 5TH Ed.
RA Noe, JR Hollenback, B. Gerhart, PM Wright
Mari-Ann B. Bringas, MD
HRM - MHM Sem 3

2. Satisfied and Loyal Customers
Satisfied and Loyal
Employees
Retaining Employees
Successful Organizations

3. Turnover Discipline
Separation Retention

4. Employee Turnover
Involuntary Turnover
• Initiated by employer
• Often with employees
who prefer to stay
• Termination
• Lay off due to downturn
• Alcoholism & Drug use
Voluntary Turnover
• Initiated by
employees
• Often when
organization would
prefer to keep them
• Most valued, least loyal

5. Managing turnover
• What was the primary reason
you’ve ever quit a job?
a. I didn’t like my boss or co-workers
b. I wasn’t a fit with the company
culture
c. Better pay somewhere else
d. More interesting or challenging
work somewhere else
e. I was fired or laid off
f. Others

6. Table 10.1: Costs Associated with Turnover
INVOLUNTARY TURNOVER VOLUNTARY TURNOVER
Recruiting, selecting and
training replacements
Recruiting, selecting and
training replacements
Lost productivity Lost productivity
Lawsuits Loss of talented employees
Workplace violence

7. What causes turn-over?
• Focus on mitigating the root cause to minimize turn-over
Involuntary
• Not performing well
• Not developing and
improving
• Hard to work with
• Hired the wrong person
• Not doing the right things
Voluntary
• Not making enough money
• Don’t have the career growth
• Not happy
• Not developing and
improving
• Not getting recognition
• Don’t like manager
• Chose the wrong job
• Don’t know what to do

8. Employee Discipline & Separation
• Organizations must develop a standardized,
systematic approach to discipline and discharge.
• Should not be solely to the discretion of
managers
• Based on principles of justice and law

9. Principles of Justice

10. Principles of Justice
Outcome Fairness
A judgment that the consequences given to employees are just.
Procedural Justice
A judgment
that fair methods
were used to
determine the
consequences an
employee receives.
No bias
Interactional Justice
A judgment
that the organization
carried out its actions
in a way that took the
employee’s feelings
into account.

11. Legal Requirements
• Employers must:
wrongful discharge and illegal
discrimination
related to employee’s
privacy and adequate notice of lay-offs

12. Wrongful discharge
• Violating an implied agreement
– if the employer had promised job security or if the
action is inconsistent with company policies
• Violations of public policy
– terminating for refusing to do something illegal,
unethical or unsafe
• Organizations must establish and
communicate policies for handling
misbehavior.

13. Create Standard Rules for:
• Tardiness
• Absenteeism
• Cyberslacking
• Unsafe work practices
• Theft of company property
• Poor quantity or quality of work
• Sexual harassment of co-workers
• Coming to work impaired by alcohol or drugs

14. Discrimination
• Employers must make decision without regard
to individuals’ age, sex, race, or other
protected status

15. Employee’s Privacy
• Employers may gather info and use it relevant
to the workplace
Measures for Protecting Employee’s Privacy
Ensure that information is relevant.
Publicize information-gathering policies and consequences.
Request consent before gathering information.
Treat employees consistently.
Conduct searches discreetly.
Share information only with those who need it.

16. Notification of Lay-offs
• Sometimes terminations are necessary for
economic reasons
• Organizations that plans broad-scale lay-offs
should give notice before lay-off (60 days)

17. Employee discipline
Fair, legal and effective
Rules and Policies
• Consistent
• Fair
• Proportionate with
behavior
• Clearly communicated

18. Fair, legal and effective discipline
Progressive Discipline
• A formal discipline
process in which the
consequences become
more serious if the
employee repeats the
offense.
Hot stove rule
• Burns immediately
• Provides warning
• Gives consistent
punishment
• Burns impersonally
• Problem:
• All situations are not
the same

19. Progressive Discipline Responses

20. Alternative Dispute Resolution
• Methods of solving a problem by bringing in
an impartial outsider but not using the court
system
• Timely, constructive, cost -effective

21. Open-Door Policy
• Two people in conflict should first try to arrive at
a settlement together, the organization has a
policy of making managers available to hear
complaints.
• “open door”-
• If the employee does not get a resolution from
that person, the employee may appeal to
• This policy works only to the degree that
managers who hear complaints listen and are
able to act.

22. Peer Review
• If cannot reach an agreement, they take their
conflict to a panel composed of
from the organization at the
same levels as the people in the dispute.
• The panel hears the case and tries to help the
parties arrive at a settlement.
• To set up a panel to hear disputes as they arise,
the organization may assign managers to
positions on the panel and have employees elect
non management panel members.

23. Mediation
• If the peer review does not lead to a
settlement, a neutral party from the
organization hears the case and tries to help
the people in conflict arrive at a settlement.
• The process is not binding, meaning the
mediator .

24. Arbitration
• Binding process in which a
the organization
hears the case and resolves it by
• Experienced employment lawyers or retired
judges

25. Employee Assistance Program
• Referral service that employees can use to
seek professional treatment for emotional
problems or substance and alcohol abuse
• 1980s
• Research into depressed employees found
that a large majority who use EAP services
reported:
– improvements in their condition
– increased productivity

26. Outplacement Counseling
• Service in which professionals try to help
dismissed employees manage the job transition
from one job to another.
• Important for employee and Org:
– Eases stress and anxiety
– Improves morale and productivity
– Protects company’s reputation
– Avoids litigation

27. Job Withdrawal
• A set of behaviors with which employees try to avoid the
work situation physically, mentally, or emotionally.
• Figure 10.4 Job Withdrawal Process

29. Personal disposition
Negative affectivity
• Pervasive low levels of
satisfaction with all
aspects of life,
compared with other
people’s feelings
• anger, contempt,
disgust, guilt, fear,
nervousness
Negative self-evaluations
• tend to blame other
people for their
problems, including
their dissatisfying jobs.
• less likely to work
toward change
• they either do nothing
or act aggressively
toward the people they
blame.

30. Tasks and Roles
ROLES
set of behaviors that
people expect of person
in a particular job
TASK
Job to do

31. Role-related Sources of Dissatisfaction
Role Ambiguity
• Uncertainty about
what the
organization and
others expect
from the
employee in
terms of what to
do or how to do it.
• Unclear about
work methods,
scheduling, and
performance
criteria
Role Conflict
• demands of the
job are
incompatible or
contradictory
• Work role and
family role conflict
Role Overload
• Too many
expectations or
demands are
placed on a
person
• Organization
downsizing

32. Supervisors and Co-workers
• Affect job satisfaction
• A person may be satisfied with them because
they
1. share same values, attitudes, and philosophies
2. provide social support
3. sympathetic and caring
4. help the person attain some valued outcome

33. Supervisors and Co-workers
by managers and peers
in the workplace can produce tremendous
dissatisfaction.
of senior
managers play an even greater role in their
level of engagement with their work.

34. Co-worker
relationships
contribute to
job satisfaction
organizations should try to
provide opportunities to
build positive relationships.

35. Pays and Benefits
• Employees care about their earnings
• Job primary source of income
• Pay indicator of status within the
organization and society self-worth
• Satisfaction with pay is significant for retaining
employees
• Pay, benefits, vacation time

37. Pay and Benefits
• Organizations make decisions about whether
to match or exceed the industry averages.
• HR professionals can increase job satisfaction
by to employees the:
– Value of their benefits
– Reason behind limited raises
– Explain pay structure

38. Actions Employees Take When Dissatisfied
Behavior
changes
• Change the
condition
• Whistle-
blowing
• Bring a lawsuit
• Lodge
complaints
Physical Job
withdrawal
• Tardiness
• Absenteeism
• Request
transfer
• Leaving
• Costly to
employer
• Top performers
are hardest to
keep
Psychological
withdrawal
• Low level of job
involvement
• Low
organizational
commitment

39. Job Satisfaction
pleasant feeling from perception that ones’ job fulfills or
allows fulfillment of ones important values

40. Factors Affecting Job Satisfaction

41. Fig 10.5 Increasing Job Satisfaction

42. Monitoring Job Satisfaction
• Employers can better retain employees if they
are aware of satisfaction levels, so they can
make changes if employees are dissatisfied.
• Employee survey program
– Detects need to improve career management
– Measure effectiveness of existing policies
– Capture results of successful practices
– Gives employees a chance to be heard
– Monitor trends and prevent voluntary turnover

43. Figure 10.7: Example of Job Descriptive Index (JDI)
10-44

44. Figure 10.8: Example of a Simplified, Nonverbal
Measure of Job Satisfaction
10-45

45. Exit Interview
• A meeting of a departing employee with the
employee’s supervisor and/or a human resource
specialist to discuss the employee’s reasons for
leaving.
• A well-conducted exit interview can uncover
reasons why employees leave.
• When several exiting employees give similar
reasons for leaving, management should
consider whether this indicates a need for
change.

46. Summary
• Involuntary turnover occurs when the
organization requires employees to leave,
often when they would prefer to stay.
• Voluntary turnover occurs when employees
initiate the turnover, often when the
organization would prefer to keep them.

47. Summary
• Employees draw conclusions based on:
• outcomes of decisions regarding them
• procedures applied
• way managers treat employees when carrying out
those procedures.
• Employee discipline should not result in
wrongful discharge
• Discipline should be administered
evenhandedly, without discrimination

48. Summary
• Circumstances involving the nature of a job,
supervisors and coworkers, pay levels, or
employee’s own disposition may produce job
dissatisfaction.
• When employees become dissatisfied, they may
engage in job withdrawal.
• To prevent job withdrawal, organizations need to
promote job satisfaction which is related to a
person’s values and based on perception.
– Different employees have different views of which
values are important.

49. Separating and Retaining
Employees
FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT 5TH Ed.
RA Noe, JR Hollenback, B. Gerhart, PM Wright