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Noe11e_ch_10_FINAL.pptxChapter 10
Employee Separation and Retention
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Learning Objectives
LO10-1 Distinguish between involuntary and voluntary turnover, and discuss how each of these forms of turnover can be leveraged for competitive advantage.
LO10-2 List the major elements that contribute to perceptions of justice and how to apply these in organizational contexts involving discipline and dismissal.
LO10-3 Specify the relationship between job satisfaction and various forms of job withdrawal, and identify the major sources of job satisfaction in work contexts.
LO10-4 Design a survey feedback intervention program, and use this to promote retention of key organizational personnel.
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Managing Involuntary Turnover 1 of 6
Employment-at-Will Doctrine
Either the employer or the employee could sever the employment relationship at any time
Wrongful discharge suit
Can be filed as a civil rights infringement if the person discharged is a member of a protected group
Paper trail
Initiating punitive actions short of termination, in an effort to get the employee to quit on his or her own
Paying off the employee in excess severance pay in return for waiving the right to sue for wrongful dismissal
LO 10-1
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A wrongful discharge suit typically attempts to establish that the discharge either (1) violated an implied contract or covenant (i.e., the employer acted unfairly) or (2) violated public policy (i.e., the employee was terminated because he or she refused to do something illegal, unethical, or unsafe).
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Managing Involuntary Turnover 2 of 6
Principles of Justice
Outcome fairness
Noncompete clauses
Procedural justice
Lack of bias and informational accuracy are the most critical determinants.
Interactional justice
LO 10-2
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Outcome fairness refers to the judgment that people make with respect to the outcomes received relative to the outcomes received by other people with whom they identify (referent others).
Procedural justice focuses specifically on the methods used to determine the outcomes received.
Interactional justice refers to the interpersonal nature of how the outcomes were implemented.
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Table 10.1 Six Determinants of Procedural Justice
Consistency. The procedures are applied consistently across time and other persons.
Bias suppression. The procedures are applied by a person who has no vested interest in the outcome and no prior prejudices regarding the individual.
Information accuracy. The procedure is based on information that is perceived to be true.
Correctability. The procedure has built-in safeguards that allow one to appeal mistakes or bad decisions.
Representativeness. The procedure is informed by the concerns of all groups or stakeholders (co-workers, customers, owners) affected by the decision, including the individual being dismissed.
Ethicality. The procedure is consistent with prevailing moral standards as they pertain to issues like invasion of privacy or deception.
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Table 10.2 Four Determinants of Interactional Justice
Explanation. Emphasize aspects of procedural fairness that justify the decision.
Social sensitivity. Treat the person with dignity and respect.
Consideration. Listen to the person's concerns.
Empathy. Identify with the person's feelings.
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Managing Involuntary Turnover 3 of 6
Progressive Discipline and Alternative Dispute Resolution
Termination should come about at the end of a systematic discipline program.
Documentation
Punitive measures
Alternative dispute resolution (ADR)
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Table 10.3 An Example of a Progressive Discipline Program
| OFFENSE FREQUENCY | ORGANIZATIONAL RESPONSE | DOCUMENTATION |
| First offense | Unofficial verbal warning | Witness present |
| Second offense | Official written warning | Document filed |
| Third offense | Second official warning, with threat of temporary suspension | Document filed |
| Fourth offense | Temporary suspension and “last chance notification” | Document filed |
| Fifth offense | Termination (with right to go to arbitration) | Document filed |
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Table 10.4 Stages in Alternative Dispute Resolution
Stage 1: Open-door policy The two people in conflict (e.g., supervisor and subordinate) attempt to arrive at a settlement together. If none can be reached, they proceed to
Stage 2: Peer review A panel composed of representatives from the organization that are at the same level of those people in the dispute hears the case and attempts to help the parties arrive at a settlement. If none can be reached, they proceed to
Stage 3: Mediation A neutral third party from outside the organization hears the case and, via a nonbinding process, tries to help the disputants arrive at a settlement. If none can be reached, the parties proceed to
Stage 4: Arbitration A professional arbitrator from outside the organization hears the case and resolves it unilaterally by rendering a specific decision or award. Most arbitrators are experienced employment attorneys or retired judges.
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Managing Involuntary Turnover 4 of 6
Employee Assistance and Wellness Programs
Employee assistance program (EAP)
Usually identified in official documents published by the employer (such as employee handbooks).
Supervisors (and union representatives, where relevant) are trained to use the referral service for employees whom they suspect of having health-related problems.
Employees are also trained to use the system to make self-referrals when necessary.
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An employee assistance program (EAP) is a referral service that supervisors or employees can use to seek professional treatment for various problems.
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Managing Involuntary Turnover 5 of 6
Employee Assistance and Wellness Programs continued
Employee wellness programs
Focus on trying to prevent health-related problems
Some companies take a punitive approach.
How important is an employee’s health to the performance of the job?
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Managing Involuntary Turnover 6 of 6
Outplacement Counseling
Helps dismissed employees manage the transition from one job to another.
Includes career counseling, job search support, résumé critiques, job interviewing training, and provision of networking opportunities
Reduces likelihood of litigation by former employees
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Managing Voluntary Turnover 1 of 8
Voluntary Turnover
Support former employees’ transition into alternative employment
Preventing employees who are highly valued by the organization from leaving
Drivers of retention
Pay and job security
Benefits
Work environment
Opportunities for development
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Figure 10.1 An Overall Model of the Job Dissatisfaction–Job Withdrawal Process
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Managing Voluntary Turnover 2 of 8
Process of Job Withdrawal
Behavior change
Can lead to supervisor–subordinate confrontation
Whistle-blowing
Physical Job Withdrawal
Psychological Withdrawal
Low level of job involvement
Low level of organizational commitment
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Employees can initiate change through whistle-blowing (making grievances public by going to the media). Whistle-blowers are often dissatisfied individuals who cannot bring about internal change and, out of a sense of commitment or frustration, take their concerns to external constituencies.
Job involvement is the degree to which people identify themselves with their jobs.
Organizational commitment is the degree to which an employee identifies with the organization and is willing to put forth effort on its behalf.
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Managing Voluntary Turnover 3 of 8
Job Satisfaction and Job Withdrawal
Job satisfaction
Function of values
Different employees have different views of which values are important
Perception
Influenced by frame of reference
LO 10-3
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Managing Voluntary Turnover 4 of 8
Sources of Job Dissatisfaction
Unsafe working conditions
Occupational Safety and Health Act of 1970 (OSHA)
The nature of the work in a job makes managing safety-related perceptions critical.
Protecting workers and ensuring their safety is particularly challenging when trying to manage overseas operations.
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Managing Voluntary Turnover 5 of 8
Sources of Job Dissatisfaction continued
Personal Dispositions
Negative affectivity
Tasks and roles
Strong positive relationship between task complexity and job satisfaction
Job rotation
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Negative affectivity is a term used to describe a dispositional dimension that reflects pervasive individual differences in satisfaction with any and all aspects of life.
The term prosocial motivation is often used explicitly to capture the degree to which people are motivated to help other people.
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Managing Voluntary Turnover 6 of 8
Sources of Job Dissatisfaction continued
Prosocial motivation
Supervisors and co-workers
Pay and benefits
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Negative affectivity is a term used to describe a dispositional dimension that reflects pervasive individual differences in satisfaction with any and all aspects of life.
The term prosocial motivation is often used explicitly to capture the degree to which people are motivated to help other people.
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Managing Voluntary Turnover 7 of 8
Measuring and Monitoring Job Satisfaction
Workers’ self-reports
Job Descriptive Index (JDI)
Pay Satisfaction Questionnaire (PSQ)
Pulse surveys
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Pulse surveys are very short questionnaires that go out every day or once a week that focus on a small set of specific questions—perhaps even just one question—which the company wants to keep track of over time.
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Managing Voluntary Turnover 8 of 8
Survey Feedback Interventions
Employee survey research
Employee satisfaction surveys
Allow company to monitor trend over time
Provide a means of empirically assessing the impact of changes in policy or personnel
Allow company to compare itself with others in the same industry along these dimensions
Allow company to check for differences between units and benchmark “best practices” that might be generalized across units
Tool for uncovering systematic concerns that are driving retention problems
LO 10-4
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Appendix of Image Long Descriptions
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Figure 10.1 An Overall Model of the Job Dissatisfaction–Job Withdrawal Process
Causes of job dissatisfaction include personal disposition, tasks and roles, supervisors and co-workers, and pay and benefits. Manifestations of job withdrawal include behavior change, physical job withdrawal, and psychological job withdrawal.
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