Why People Leave Organisations

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Why People Leave Organisations

  1. 1. Why people leave organisations Employees resign for different reasons. It may be the attraction of a new job or the prospect of some time outside the workforce which 'pulls' them, on other occasions they are 'pushed' due to dissatisfaction in their present jobs to seek alternative employment. Sometimes it is a mixture of both push and pull factors. For a fourth group reasons for leaving are explained by domestic circumstances outside the control of any employer, as is the case when someone relocates with their spouse or partner (CIPD, 2006).
  2. 2. Work-Life Balance Since the turn of the century, work-life balance has become a major issue with people becoming dissatisfied with long hours, little vacation, texts from the boss outside working hours and little time for family commitments. Friedman, Christiansen and DeGroot in a Harvard Business Review maintain that if managed correctly work-life balance can improve morale, increase productivity, help hire and retain the best employees and is not just a perk that will cost your company money, it yields significant bottom line results.
  3. 3. Work-Life Balance <ul><li>Work-life balance business benefits include: </li></ul><ul><li>Increased productivity </li></ul><ul><li>Improved recruitment and retention </li></ul><ul><li>Lower rates of absenteeism </li></ul><ul><li>Reduced overheads </li></ul><ul><li>An improved customer experience </li></ul><ul><li>A more motivated, satisfied and equitable workforce. </li></ul>
  4. 4. A changing workplace: <ul><li>Managing workforce diversity: </li></ul><ul><li>People within a nation are “collectively mentally programmed”, i.e. they interpret experiences in a certain way that differs from the interpretation in other cultures. While national culture mainly refers to differences in values developed early in a person’s life, organizational culture is primarily related to practices which have been learnt at work. Therefore, managing cultural diversity has become the major challenge for the new era. </li></ul>
  5. 5. Theory X and Y: Theory X is a pessimistic approach of Management which is based on the assumption that most people are naturally reluctant to work, and need discipline, direction, and close control, if they are to meet work requirements. Theory Y: The theory based on the assumption that employees want to work, achieve, and take responsibility for meeting their work requirements. Therefore, it is an optimistic approach and says that people accept work as a matter of play or rest and get self actualized by doing work.
  6. 6. Theory X: Theory X is a pessimistic approach of Management which is based on the assumption that most people are naturally reluctant to work, and need discipline, direction, and close control, if they are to meet work requirements.
  7. 7. Theory X Assumptions ('autocratic management' style) <ul><li>The average human being has an inherent dislike of work and will avoid it if he can. </li></ul><ul><li>Because of their dislike for work, most people must be controlled and threatened before they will work hard enough. </li></ul><ul><li>The average human prefers to be directed, dislikes responsibility, is unambiguous, and desires security above everything. </li></ul><ul><li>These assumptions lie behind most organizational principles today, and give rise both to &quot;tough&quot; management with punishments and tight controls, and &quot;soft&quot; management which aims at harmony at work. </li></ul>
  8. 8. Theory X Assumptions ('autocratic management' style) <ul><li>Both these are &quot;wrong&quot; because man needs more than financial rewards at work; he also needs some deeper higher order motivation - the opportunity to fulfil himself. </li></ul><ul><li>Theory X managers do not give their staff this opportunity so that the employees behave in the expected fashion. </li></ul>
  9. 9. Theory Y: The theory based on the assumption that employees want to work, achieve, and take responsibility for meeting their work requirements. Therefore, it is an optimistic approach and says that people accept work as a matter of play or rest and get self actualized by doing work.
  10. 10. Theory Y (democratic management' style) Assumptions <ul><li>The expenditure of physical and mental effort in work is as natural as play or rest. </li></ul><ul><li>Control and punishment are not the only ways to make people work, man will direct himself if he is committed to the aims of the organization. </li></ul><ul><li>If a job is satisfying, then the result will be commitment to the organization. </li></ul>
  11. 11. Theory Y (democratic management' style) Assumptions <ul><li>The average man learns, under proper conditions, not only to accept but to seek responsibility. </li></ul><ul><li>Imagination, creativity, and ingenuity can be used to solve work problems by a large number of employees. </li></ul><ul><li>(Koontz et al. 1988c) </li></ul>
  12. 12. Two Leadership Style at a glance Positive To build buy-in or consensus, or to get input from valuable employees Collaboration, team leadership, communication “ What do you think?” Forges consensus through participation DEMOCRATIC Most strongly positive When changes require a new vision, or when a clear direction is needed Self-confidence, empathy, change catalyst “ Come with me” Mobilizes people toward a vision AUTHORITATIVE Overall impact on climate When the style works best Underlying emotional intelligence component The style in a phrase The leader’s modus operandi  
  13. 13. Comments on the theory X and theory Y assumptions Peace (1991a) argued that in the last 50 years the populations have become better off financially. They have more money to spend. People spend less time working for money and more security than ever before, and the trend cannot be reversed. Now it is a known factor that working for a 6 day week is inhuman; a 10-hour day is exploitation. 30 years ago it was necessary to request please do not sit on the floor. Today the same admonition requires “three” pleases before the employees feel that a superior has demonstrated the psychological proper attitude ( Peace 1991a)
  14. 14. Comments on the theory X and theory Y assumptions These assumptions are based on social science research which has been carried out, and demonstrate the potential which is present in man and which organizations should recognize in order to become more effective.
  15. 15. Comments on the theory X and theory Y assumptions McGregor (1960) sees these two theories have separate managerial implications. Theory Y is difficult to put into practice on the shop floor in large mass production operations, but it can be used initially in the managing of managers and professionals
  16. 16. Figure: The situations where participative management work well
  17. 17. Comments on the theory X and theory Y assumptions McGregor (1960) sees these two theories have separate managerial implications. Theory Y is difficult to put into practice on the shop floor in large mass production operations, but it can be used initially in the managing of managers and professionals

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