Theories on employee motivation
One of the earliest models of turnover is March and Simon’s (1958) theory of
organizational equilibrium, in which the authors proposed that desirability of movement
and ease of movement are the two main drivers of employee turnover. Desirability of
movement is commonly defined by the individual’s satisfaction with the job, whereas
ease of movement generally reflects perceived or actual job alternatives in the external
market (Lawler, 2001). Viewed from the perspective of retention, the model suggests
that employees will be more likely to stay when they are satisfied with their jobs and
believe that there are few alternatives available. Hence, job satisfaction and lack of
alternatives are included here as two important factors in employees’ decisions to stay.
Employees would be satisfied (and thus more likely to stay) if they felt that the outcomes
they received reflected the effort and other inputs that they had invested. More recently,
organizational justice has been defined more broadly to include fairness perceptions
related to outcomes, procedures, and interpersonal interactions, which have been shown
to be related to employees’ decisions to remain with their employer (Aquino, Griffeth,
Allen, & Hom, 1997).
Vroom expectancy theory suggested that individuals will choose behaviors they believe
will result in the achievement of specific outcomes they value. In deciding how much
effort to put into work behavior, individual are likely to consider three things; valence,
instrumentality and expectancy. All these factors are often referred to as ‘VIE’ and they
are considered to influence motivation in a combined manner. Managers should therefore
attempt to ensure their employees that increased effort will lead to higher performance
which will hence lead to valued rewards (Heathfield, 2000). The relevance of this theory
to the study is that KPLC has put up rewards (cash bonuses) that are supposed to be
attractive so as to achieve a desired outcome which is organizational performance. Thus
employees have to exert effort in their work that will lead to a certain level of
performance that is desirable by management, which will then result to a reward.
According to Herzberg’s motivation-hygiene theory (1974) the hygiene factors are those
if fulfilled remove dissatisfaction; these are basic needs, working conditions and
motivators. If these remain unsatisfied, they bring demotivation to work; employees tend
to lose interest in work and attempt to find other employment opportunities (Breaugh,
2000). Herzberg concluded that factors which seemed to make an individual feel satisfied
with their jobs were associated with the content of the job these were labeled motivators,
yet factors that seemed to make individuals feel dissatisfied were associated with the job
context; these he labeled hygiene factors. Herzberg argued that two entirely separate
dimensions contribute to employee behavior at work. Hygiene factors and motivator
hygiene factors refer to the presence or absence of job dissatisfies. When hygiene factors
are valued, work is dissatisfying. These are considered maintenance factors that are
necessary to avoid dissatisfaction but they do not themselves contribute to the jobs
satisfaction and motivation of personnel (Mahal, 2012). That is, they only maintain
employees in the job. Therefore managers should provide hygiene factors to reduce
sources of worker dissatisfaction and be sure to include motivators because they are the
factors that can motivate workers and lead ultimately to job satisfaction, In line with
Herzberg’s view, unsafe working conditions or a noisy work environment would cause
employees to be dissatisfied with their job but their removal will not lead to a high level
of motivation and satisfaction other examples of hygiene factors include, salary, status,
security, supervision and company policy (Mahal, 2012). On the other hand motivators,
leading to job satisfaction are associated with the nature of the work if self. They are
those job related practices such as assignment of challenging jobs, achievement, work
itself, recognition, and responsibility advancement and opportunities for growth in the job
(Breaugh, 2000).
Herzberg (1974) argued that when motivators are absent, workers are neutral towards
work, but when motivators are present, workers are highly motivated to excel at their
work. For Charles, (2009) while studying factors which affect job satisfaction, and
dissatisfaction of employees, came up with the view that the factors, which contribute to
their satisfaction are, achievement, recognition and responsibility while those
contributing to dissatisfaction were organizational policy and administration,
interpersonal relationship, supervision and personal life.
2.1 Employee Retention Strategy
A strategy is the outcome of some form of planning, organized process for anticipating
and acting in the future in order to carry out an organisations mission (Baker, 2007). The
people who drive strategy in organisations are seen to be visionaries, the entrepreneurs
and innovators. Many companies, particularly larger ones with fully developed Human
Resource departments, engage in elaborate planning exercises in order to develop a
cohesive and unitary strategy to deal with employee retention. Indeed, many experts
within the Human Resource literature emphasize the importance of such exercises, and
emphasize that good retention is best assured when companies take a strategic approach
to the question. Employee Retention Strategy refer to policies and practices that an
organization uses to satisfy the diverse needs of employees and create an environment
that encourages them to stay with the organization. (Morgan, L. 2011).
Agrela, et al (2008) states the need to focus on the factors that affects retention leading to
growth and success of organizations. Studies suggests that retention strategies, which
effectively satisfy the needs of all employees consequently enhances the ability for
companies to adapt more effectively to ongoing organizational change (Gale Group,
2006). Research shows that trends redefining modern retention strategies go beyond the
traditional salary and benefits package (Gale Group, 2006) and compensation (Feldman,
2000) embracing employee motivation (Thomas, 2000), as one of the key factors to cater
to the diversity and long stay of the workforce in the organization. Retention factors
incorporating the needs and desires of employees at any age enhance levels of individual
job satisfaction, loyalty, and commitment (Boomer Authority, 2009). Cunningham (2002)
states that employees rank employee recognition, flexibility and training as top priorities
for prolonging individual employment, while Walker (2001) and others call for
establishing a supportive learning and working climate for employee retention.
Lockwood, (2006) has provided evidence that indicates a correlation in firms between
“good” workforce outcomes which includes reduced layoffs, quit rates, accidents and
grievances and Human Resource strategies that emphasize employee participation and
intrinsic rewards. The presence of practices related to internal career development is
often the best predictor of an employee's affective commitment. Such plans include
advancement plans, internal promotion and accurate career previews at the time of hiring.
Furthermore, as Lockwood, (2006) point out, it is still unclear whether successful practices
engender high performance, or whether strong performance creates the resources for the
implementation of such practices.
