Chapter 05 Individual Organization Relations and Retention Essay

Name  : Clas  s: Dat  e: Chapter 05 - Individual/Organization Relations and Retention 81. What are the three major factors that affect individual performance in organizations? ANSWER: The three major factors that affect how an individual performs are as follows: (1) ability to do the work, (2) effort expended, and (3) organizational support. The relationship of those factors is broadly defined in management literature as follows: Performance (P) = Ability (A) × Effort (E) × Support (S) 82. In the context of Frederick Herzberg's motivation/hygiene theory, explain how motivators and hygiene factors interact to affect employee performance. ANSWER: Frederick Herzberg's motivation/hygiene theory assumes that one group of factors, motivators, accounts for increases in individual motivation because of enrichment and other positive work characteristics. Alternatively, hygienefactors can cause employees to become dissatisfied with work if these basic expectations are not adequately addressed; however, hygiene factors do not directly motivate employees. The implication of Herzberg's research for management and HR practices is that even when managers carefully consider and address hygiene factors to avoid employee dissatisfaction, employees may not be motivated to work harder. The two-factor theory suggests that only motivators lead to greater effort from employees and thereby enhance employee performance. 83. What are the usual employee and employer expectations in a psychological contract? ANSWER: Employers are expected to provide employees with competitive compensation and benefits, flexibility to balance work and home life, and career development opportunities. Employees are expected to contribute in terms of continuous skill improvement and increased productivity, reasonable length of service, and extra efforts and results when needed. 84. Define organizational commitment. ANSWER: Organizational commitment is the degree to which employees believe in and accept organizational objectives and want to remain employed at a company. 85. Describe the main differences between engaged and disengaged employees in an organization. ANSWER: Engaged employees put in extra effort and are highly involved in their jobs. They employ both effort and thought in their work, and they are active and busy. They are also fully invested in their jobs. Disengaged employees, on the other hand, simply put in time but do not do their best work. They are apathetic, do only their basic jobs, and react only to pay. 86. Compare the various types of absenteeism. ANSWER: Employees can be tardy or absent from work for several reasons. Clearly, some absenteeism is inevitable because of illness and other personal reasons. Though absences such as those that are health related are unavoidable and understandable, they are still very costly. Many employers have sick leave policies that allow employees a certain number of paid days each year for involuntary absences. However, much absenteeism is avoidable, or voluntary. Absence can also be planned (the least disruptive), unplanned, incidental (less than a week), or extended (lasting beyond a week). 87. In the context of addressing absenteeism, briefly explain no-fault policies. ANSWER: With a no-fault policy, the reasons for absences do not matter, and employees must manage their own attendance unless they abuse that freedom. Once absenteeism exceeds normal limits, then disciplinary action up to and including termination of employment can occur. 88. Distinguish between functional turnover and dysfunctional turnover. ANSWER: Functional turnover occurs when lower-performing, less reliable, and/or disruptive individuals leave an organization. Dysfunctional turnover occurs when key individuals leave, often at crucial times. Page14 Name  : Clas  s: Dat  e: Chapter 05 - Individual/Organization Relations and Retention 89. How can an optimal amount of turnover benefit a company? ANSWER: Not all turnover is negative. Losing low performers should be considered positive. There may be an "optimal" amount of useful turnover necessary to replace low performers and add part-time or contract workers with special capabilities to improve workforce performance. 90. What is an exit interview? ANSWER: One widely used means for assisting retention assessment efforts is the exit interview in which individuals who are leaving an organization are asked to explain their reasons. HR must regularly summarize and analyze the data by category (e.g., reasons for leaving, department, length of service) to provide managers and supervisors with information for improving company efforts. 91. How can employee engagement be enhanced throughout a company? ANSWER: Employee engagement can be enhanced by emphasizing the company's culture and practices during interviews, having managers support this culture in a consistent manner (such as during orientation), and providing employees with a supportive group of coworkers who make them feel part of the team. Ensuring that workers have the proper tools and equipment, showing appreciation for their work, listening to their concerns and suggestions, and recognizing their contributions are all inexpensive, yet effective, ways to boost employee engagement. Surprisingly, higher pay and benefits are rarely the solution to engagement, despite their possible impact on improving satisfaction. Engagement is more about building an emotional connection between workers and their employers that increases their enthusiasm and involvement in their jobs. 92. What is motivation? Describe some common ways in which organizations try to motivate their employees. ANSWER: Motivation is the desire that exists within a person that causes that individual to act. Organizational values and practices may be important tools that can be used to motivate employees. A recent survey determined that being appreciated and respected in the workplace, being able to utilize personal capabilities, and liking the job were the top values that motivated workers. Other motivational issues included pay, employment security, good managers/leaders, and positive HR practices such as performance feedback, training, and benefits. 93. How has the psychological contract between employers and employees changed over time? ANSWER: Employees usually expect to exchange their efforts and capabilities for secure jobs that offer competitive pay, desirable benefits, opportunities to learn and develop, fair treatment, and career progression, among many other positive factors. But as some organizations have responded to business challenges by downsizing or employing more contingent workers, long-service employees may question whether they should remain loyal to and stay with their employers. In other words, the contract has been altered in many organizations. 94. What is the relationship between job satisfaction and organizational commitment? ANSWER: Job satisfaction influences organizational commitment, and both of these factors can affect employee retention and turnover. Levels of job satisfaction and organizational commitment are, in part, determined by the interaction of the individual and the work environment. 95. Describe three methods used to control absenteeism in organizations. ANSWER: Employers use methods such as the following to address absenteeism:   Disciplinaryapproach: People who are absent in excess of policy limits receive warnings and more severe discipline if their attendance does not improve. Positivereinforcement: Positive reinforcement includes actions such as giving bonuses, recognition, Name  : Clas  s: Dat  e: Chapter 05 - Individual/Organization Relations and Retention time off, and other rewards for meeting attendance standards. Combinationapproach: A combination approach ideally rewards desired behaviors and punishes undesired behaviors. This carrot-and-stick approach uses discipline to punish offenders and various rewards to recognize employees with outstanding attendance. For instance, employees with perfect attendance may receive incentives of travel and other rewards. Those with excessive absenteeism would be disciplined.  96. Describe some causes of voluntary turnover. ANSWER: Common voluntary turnover causes include job dissatisfaction, pay and benefits levels, supervision, geography, and personal/family reasons. Alternative employment opportunities may lead to turnover for Page15 individuals, especially those in highly specialized jobs such as IT. 97. Describe five factors that are included in calculating turnover costs. ANSWER: Factors to be included in calculating turnover costs include the following:      Separationcosts: HR staff and supervisory time, pay rates to prevent separations, exit interview time, unemployment expenses, legal fees for challenged separations, accrued vacation expenditures, continued health benefits, and others Vacancycosts: Temporary help, contract and consulting firm usage, existing employee overtime, and other costs until the person is replaced Replacementcosts: Recruiting and advertising expenses, search fees, HR interviewer and staff time and salaries, employee referral fees, relocation and moving costs, supervisor and managerial time and salaries, employment testing costs, reference checking fees, preemployment medical expenses, relocation costs, and others Trainingcostsforthenewworker: Paid orientation time, training staff time and pay, costs of training materials, supervisor and manager time and salaries, coworker "coaching" time and pay, and others Hidden/indirectcosts: Costs that are less obvious, such as reduced productivity, decreased customer service, lower quality, additional unexpected employee turnover, missed project deadlines, and others 98. List the six main drivers of retention. ANSWER: The six main drivers of retention are as follows: organizational and management factors, employee– supervisor relationships, job and work–life balance, rewards, career training and development, and employer policies and practices. 99. Discuss how organizations can retain top performers. ANSWER: Organizations that cannot consistently retain their top performers have greater difficulties in creating a sustainable talent pipeline and achieving organizational objectives. Consequently, HR professionals must develop creative ways to retain high-performing employees. HR professionals can focus on providing work opportunities that position high-performers to move up in the company. These opportunities can include mentoring with executives, challenging job assignments, development opportunities that build managerial competencies, and regular performance feedback. Organizations should also consider using rerecruiting to enhance retention. Rerecruiting is a strategic HR approach that involves getting outstanding employees to further connect with employers by focusing on the opportunities that initially attracted them to the organization. Such discussions can encourage high performers to commit to the organization in a long-term capacity. Page16 Name  : Clas  s: Dat  e: Chapter 05 - Individual/Organization Relations and Retention 100. Why are employee surveys an important part of retention assessment? ANSWER: Employee surveys can be used to diagnose specific problem areas, identify employee needs or preferences, and assess employee perceptions of HR activities. Not all HR professionals believe that annual surveys are the best way to gather input from employees as the once-a-year process may generate more information than leadership can address in a short time. Therefore, providing various avenues for employees to express their opinions and concerns may be a good approach. Whether surveys or other methods cover general employee attitudes, job satisfaction, or specific issues, the results must be examined as part of retention measurement efforts. Regardless of the topics in a survey, employee input provides data on the "retention climate" in an organization. By obtaining data on how employees view their jobs, their coworkers, their supervisors, and organizational policies and practices, these surveys can be starting points for reducing turnover and increasing the length of time that employees are retained. Some employers conduct attitude surveys annually, while others do so intermittently. Asking employees to respond candidly to an attitude survey builds employees' expectations that actions will be taken on the concerns identified. Therefore, a crucial part of conducting an attitude survey is providing feedback to those who participated in it. It is especially important that even negative survey results be communicated to avoid fostering the appearance of hiding the results or placing blame. Also, leaders should develop actions plans for how results can be used in a strategic manner to positively change how organizations function. Page17