Discuss about the Management and Organizations Limited in Global Environment.
Employee turnover rate refers to the percentage of people leaving an organization. This is one of the major issues that a company faces. Employee turnover could be the reason of various unethical practices prevailing in the organization along with the loopholes in the framework of the organization (Hausknecht and Holwerda 2013). It is quite vital for an organization to pay more heed to this issue, as it would affect the productivity, growth and sustainability of the organization.
In this report, the case of Advanced Programming limited has been taken into consideration. This is an old company with 1000 employees in it. Recently there have been some disturbing changes in the company related to increased amount of employment turnover. This effect has raised the tension of the heads of the organization. In this report, the reasons behind such an issue would be analysed, with regards to different theories. In the end recommendations have been stated that would help the organization in to the organization from such situations.
Advanced Programming Limited (APL) has been going through the phase of high employee turnover, which has reduced the amount of workers in the company. This has reduced the smooth functioning of the organization. There are various reasons which are stated as reasons by the employees while they plan to leave their job. Some of them are that they need a break from the work life, they are too exhausted with the long working hours, they need to involve themselves in their families, they want to bring some happiness in their personal life by spending time with kids and families. They feel as being pressurized in the working atmosphere of the company. According to the vice president of the organization, Paul Bolton, all these excuses or reasons mentioned by the employees are not true at all.
One of the reasons for the high turnover rate of employees in APL limited is that they are getting attracted to some other jobs at that current point of time. Starts up companies are quite demanded by these employees. Secondly, the employees of the organization have more money than they can use. This money has been derived from the skyrocketed stock prices of the company. Their financial independence gives them lesser reasons to remain in the company.
In order to analyse the attributes of the employees towards the job loyalty and towards APL, it would be quite beneficial to evaluate their thoughts with the help of Four Drive Theory and Mcclelland’s Learned Needs Theory.
The Four Drive Theory has been framed by Dr. Lawrence and Nitin Noharia (Weiner 2013). According to this theory, every individual aim at fulfilling their objectives, thereby dividing the drivers who maintain the motivation in the individual as follows : acquire, bond, comprehend and defend.
Considering the case of APL, the employees have the drive to acquire those jobs that are more competing in nature. They are more attracted towards start up companies where a single person is playing more than a role (Jung 2014). Though thus would make them more weary of what they did at APL, yet, they have a positive perception towards it.
The drive to learn of the employees would be satisfied by learning working at new environments and by gaining new knowledge. By being in a new company, the system of work would change; thereby it would provide them with freshness at work.
The drive to bond in the employees manifests the urge to seek other jobs and to find new jobs for themselves. They are more likely to get attracted to new companies of their genre that would provide them with a better scope of growth.
The fourth drive is the drive to defend is latent. This drive is stimulated by a threat to become active. The threat of the employees of working for more hours in APL and the opportunity of working with a start up company provides these employees to resign from the currently job as an act of defence towards themselves.
All these four drives explain how the employees undergo the drives to acquire, bond, learn and defend with regards to leaving their jobs at APL and acquiring a new one.
According Mcclelland’s Learned Needs Theory, a person has three motivating drivers, out of which one would be the dominant activator among them (MCCLELLAND 2015). The three drivers are achievement, power and affiliation.
According to achievement motivator, the employees of APL have a strong affiliation of achieving and gaining new experiences at new start up companies, which would provide them with a wider scope to grow along with the company; it is so because apl is a well developed company where a single person performs a limited task. On the contradictory in a start up company, an individual would get the opportunity to adhere to various tasks. This would provide the employees with an essence of something new in their work life.
According to affiliation motivator, the employees who are planning to quit their jobs at APL just because their fellow colleagues are doing so. They have the urge to get attracted towards those who have left their job and have joined some other companies, thereby making it quite attractive for them to change their jobs (Miner 2015).
According to the power motivator, the employees want to acquire power, which they perhaps could not exercise at their current jobs. APL being an old company has been able to define the duties of every individual in an organized manner. New start up companies has not been able to define the positions of the individuals thereby allowing an experienced person to handle various matters of the company. It provides a sense of power to these employees. Moreover these employees have been able to gain more money, thereby providing them with the power of status and recognition.
Among the three motivators, any one motivator could be a dominant factor for the employees. The perception of the dominant motivator differs among the individuals. This theory provides a situation of what motivates the employees to leave their current jobs and acquire a new one somewhere else.
A company that suffers from a high employee turnover rate has to incur various complexities at work place. It renders a higher costly on the company to train and replace a new employee. APL is one such organization that is currently facing such complications of being unable to stabilise the employee in the organization. In order to overcome such situations, there are various ways that could have been considered, that would hence provide the association with some stability.
One of the ways of attaining lower turnover is by setting the right compensation and benefits to the employees. It is quite important to get the current data of the packages that are being offered in various companies, and changes must be made in accordance to that (Wheeler, Halbesleben and Harris 2012). This would give the employees lesser opportunities to think of changing their jobs.
Another way is to review the compensation packages that are being provided to the employees in the organization. The benefit and compensation packages are one of the most attractive bonus that an employee looks upto, thereby incentivising the situation of being adhered to the job and maintaining their loyalty (Worren 2012).
It is quite important for the organization to consider the needs of the employee. The employees must be facing various difficulties at workplace that could be related to the environment or the pressure of work that they might handle at work. The head of the organization must be at constant communications with them (Northouse 2015).
McClelland’s Learned Needs Theory
Recognitions and appraisals at work are very important for an employee that would help them to encourage their positive attitude towards the organizations. Peer recognition programs must be injected in the organization that would help in promoting the positivity around the employees (Mowday, Porter and Steers 2013). It would provide them with the hope of working much better than before. Additional benefits adhered to the performance of an individual, is considered as one of the best options to gain better acclamations from the workers (Stone 2013).
By following these methods, APL would be able to come up with better results of lowering the employee turnover rate. These measures would raise the loyalty of the employees towards the organization they would not feel indifferent or get attracted to the other job opportunities.
Employee turnover could be the reason of various unethical practices prevailing in the organization along with the loopholes in the framework of the organization. It is quite vital for an organization to pay more heed to this issue, as it would affect the productivity, growth and sustainability of the organization. Advanced programming limited has been going through the phase of high employee turnover, which has reduced the amount of workers in the company and has affected the smooth functioning of the organization. The employees of the organizations are leaving their jobs by getting attracted to better opportunities provided by the start up companies. It is quite important for the organization to analyse the drivers and motivators that are affecting the people of the organization. By acknowledging these factors, the company can adhere to various measures such as appraisals, compensation packages, communicating their needs and other benefits that would raise the loyalty of the individuals towards the company.
Mcclelland, D., 2015. AchieveMENT Motivation Theory. Organizational Behavior 1: Essential Theories of Motivation and Leadership, p.46.
Miner, J.B., 2015. Organizational behavior 1: Essential theories of motivation and leadership. Routledge.
Northouse, P.G., 2015. Leadership: Theory and practice. Sage publications.
Weiner, B., 2013. Human motivation. Psychology Press.
Hausknecht, J.P. and Holwerda, J.A., 2013. When does employee turnover matter? Dynamic member configurations, productive capacity, and collective performance. Organization Science, 24(1), pp.210-225.
Mowday, R.T., Porter, L.W. and Steers, R.M., 2013. Employee—organization linkages: The psychology of commitment, absenteeism, and turnover. Academic press.
Jung, C.S., 2014. Why are goals important in the public sector? Exploring the benefits of goal clarity for reducing turnover intention. Journal of Public Administration Research and Theory, 24(1), pp.209-234.
Wheeler, A.R., Halbesleben, J.R. and Harris, K.J., 2012. How job-level HRM effectiveness influences employee intent to turnover and workarounds in hospitals. Journal of Business Research, 65(4), pp.547-554.
Worren, N.A., 2012. Organisation design: Re-defining complex systems. Pearson.
Stone, R.J., 2013. Managing human resources. John Wiley and Sons.
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