Seminar on management & IT

Project on Employee satisfaction

Submitted to:
Sir [Link]

Submitted by:
Toseef Moin 072413
Rizwan Ghaffar
Muhammad Salman
Ghulam Hussain Butt
Irfan Saif
In The Name Of Allah

The Creator of every Creation

The Piety
The Beneficent
The Merciful
The Wise

The Lord of the world

The first and last

The sender of the holy prophet

Muhammad may peace be upon him

Whereof there is no doubt

The owner of the Day of Judgment

To whom everyone will be brought back

 Acknowledgements
First of all we are very thankful to Allah who provided us
knowledge, energy and skills to avail opportunities and increase our
knowledge and experience by completing this Project. For the
successful completion of project we are thankful to Mr. Muhammad
Shafique, who gave us in-depth knowledge of subject and equipped us
with current market trends. We were not able to accomplish this task
without the help of class of MBA Pak-IMS. We are thankful to our
parents how gave us opportunity to study and provide a better living
standard.
Brief History:

The company was founded in 1894 by Tomas Bata whose family had been cobblers for
generations. A large order from the army, military shoes and rising demand for them, during
World War I started rapid growth and small manufacture turned into modern industrial concern,
one of the first mass producers of shoes.

Tomas Bata was recognized for his social conscience, establishing housing, cinemas and
advancement programmers for his employees. The phrase "work collectively, live individually"
is one of his sayings. Bata recognized the potential of large-scale production, and was often
called the "Henry Ford of Eastern Europe". He saw technology as a means of progress, and
wanted to make the shoes as cheaply as possible so that the greatest number of people could
access them

In 1932 Tomas died in a plane crash at the Zlin airport (attempting to take-off under bad weather
conditions) and his half-brother Jan Antonin Bata became head of the company.

At the time of Tomas death, the Bata Company employed 16,560 people, maintained 1,645 shops
and 25 enterprises. Most of what Tomas had built was centralized in Bohemia-Moravia (15,770
employees, 1,500 shops, 25 enterprises) and Slovakia (250 employees and 2 enterprises). The
total international contribution to the Bata organization at the time of Tomas' death consisted of
20 international enterprises, 132 shops, and 790 employees.
Our Brands

With over 20 in-house brands available throughout the Bata world, we have the perfect
collection for all ages and occasions.

Bata Research & Development

Bata operates 6 Shoe Innovation Centres around the world. Research is conducted into
the application of new technologies, materials and designs for shoe comfort features.

About Shoes

There are many ways to combine a shoe's outsole with its and upper. There are thousands of shoe
styles but most of them fall into few categories.

Technologies and Comfort

Bata has been delivering hand-crafted quality footwear for well over 100 years. To maintain and
build on our heritage, we have created a range of technologies to ensure maximum comfort.

About Feet

Our feet work for us the whole day, whether we stand, play, run, or walk, and in the process they
become the most affected part of our anatomy

Service

Wide product assortment, personalised services, clear product merchandising (easy-to-shop)

and guaranteed customer satisfaction.

Product FAQs

What is the meaning of the symbols found on shoe labels? What are the synthetic materials
commonly used in shoes?
 Operations Of Bata All over the world

1. Europe.
2. Asia- Pacific.
3. Latin America.
4. North America.
5. Africa.

Bata Deals in

1- Gents.

2- Ladies.

3- Children.
1. Scope of Study

Organizational commitment is one criterion in understanding your organization’s project

readiness.  Other criteria like a clear project concept and knowing the project beneficiary group
are also important. When your organization is prepared to move forward with the project,
establish an evaluation team or identify an individual to oversee the evaluation component of the
project.

Keeping people is arguably the most challenging aspect of running a business today. The answer
lies in the fact that there is no one set of answers. People are different, so their reasons for doing
anything are different. Successful companies today ensure they know what makes their best
people different, and they work hard to see that those needs are met. Hopefully, some of the
ideas mentioned above will spark some useful ideas for companies and unique group of
employees.

Remember that it’s easy to get bogged down just documenting results, but these results are only
as useful as what you do with them.  It is critical to give your staff and volunteers structured time
to step back from the hectic pace of daily program delivery and reflect on what they have
accomplished.  This will enable you to become more strategic in your day-to-day work. 

2. Introduction
"Unless commitment is made, there are only promises and hopes; but no plans"
Peter F. Drucker.
Organizational Commitment is highly valuable. Studies have highlighted that commitment has a
great impact on the successful performance of an organization. This is because a highly
committed employee will identify with the goals and values of the organization, has a stronger
desire to belong to the organization and is willing to display greater organizational citizenship
behavior i.e., a willingness to go over and beyond their required job duties. And if human
resources are said to be an organization‘s greatest assets, then committed human resources
should be regarded as an Organization‘s competitive advantage. This paper will analyze the
concept of organizational commitment, what it means and why it is so relevant to organizations.
In fact, vast numbers of studies have found positive relationships between organizational
commitment and employee behaviors such as a greater effort exerted by the employee in
performing tasks, higher employee retention, better work attendance, increased willingness to
engage in citizenship behavior and higher delivery of service quality. In essence, this shows an
all-round higher employee performance effectiveness. Moreover, in today’s fast paced and
dynamic business environment, organizations can no longer guarantee "a job for life" which has
made the notion of organizational commitment even more pertinent. It is therefore in the
organization's best interest to elicit this kind of behavior. Various means of securing
Organizational commitment, in a cost effective way, are also highlighted in this paper.

3. Organizational Commitment
Organizational Commitment and Employee Retention are correlated. Organizational
commitment in the fields of Organizational Behavior and Industrial/Organizational Psychology
is, in a general sense, the employee's psychological attachment to the organization. It can be
contrasted with other work-related attitudes, such as Job Satisfaction, defined as an employee's
feelings about their job, and Organizational identification, defined as the degree to which an
employee experiences a 'sense of oneness' with their organization.
Beyond this general sense, Organizational scientists have developed many nuanced definitions of
organizational commitment, and numerous scales to measure them. Exemplary of this work is
Meyer & Allen's model of commitment, which was developed to integrate numerous definitions
of commitment that had proliferated in the literature.

The term commitment can be defined in various ways. For example O’Reilly et al, focus on the
“psychological bond that ties the employee to the Organization” .4 This bond has three forms;
compliance, identification and internalization. Similarly Meyer & Allen have proposed a three-
component model, which highlights affective commitment (individuals want to be attached to the
Organization), continuance commitment (individuals feel they need to be attached to the
Organization) and normative commitment (individuals feel they ought to remain with the
Organization). These various types of commitment will have varying effects on the
Organization’s performance and a person can display aspects of all of them.
There are two schools of thought of HRM, which have had a significant effect on the importance
and development of commitment. Up until the 1980’s the main concerns of management were
the Organization’s strategy and structure with an emphasis on the technical aspects of work.
People were seen as a resource to be spent like any other.5 Contrary to this view is the “soft”
school of HRM. This view recognizes that people are motivated by a complex set of factors that
are interrelated, such as money, the need for affiliation or achievement and the desire for
meaningful work. This view focuses on employees as potential talents and it is management’s
responsibility to learn how best to attract and retain these resources. A shift in the thinking and
values of managers during that period was coupled with various writers emphasizing the
importance of commitment i.e., such as the article written by Walton “From control to
commitment” .6 Walton saw a commitment strategy as a more rewarding approach to HRM in
contrast to the traditional control strategy. He suggested that workers respond best not when they
are tightly controlled by management, placed in narrowly defined jobs and told what to do but
instead when they are given broader responsibilities and encouraged to participate. Similarly,
other writers such as Peters & Waterman, 1982, (the culture-excellence approach) focused on 8
attributes, which they said, were necessary for companies to “get their culture right”. Their main
focus was an emphasis on productivity through people.
In today’s dynamic world and increased job insecurity, the “job for life” is no longer existent.
One can therefore question whether the concept of Organizational commitment is now becoming
redundant? People constantly fear their jobs and loose their motivation and commitment to work.
For example, since October,
2008, thousands of job cuts have been announced across all sectors of the UK economy. These
include companies such as BAE Systems, Lloyds Banking Group; Japanese electronics firm
Toshiba, Royal Bank of Scotland, insurance giant Norwich Union, Telecoms Company Nortel
and many more. Employees need to be reassured that their jobs are secure; otherwise they won’t
exert as much effort in achieving organizational objectives. A study by the International Survey
Research revealed that British staff is the most dissatisfied in the EU, with only 22% feeling
secure in their jobs. However one must consider that even if organizations are moving towards
“the flexible firm” 10, nevertheless there will always be a core group of workers and it is
important to retain their commitment to the Organization. In addition, Organizations are
increasingly relying on “outsourcing” to meet their labour force requirements, by hiring
temporary workers or independent contractors. This highlights further complexities, concerning
which company the employee is committed to i.e., whether it is the Organization they were
originally employed by or the place they are currently working. In general, writers have cited
various reasons why an Organization would want to increase the level of commitment among its
members. It has been argued that having a committed workforce is seen as the key factor in
achieving competitive performance. Research has found that the more committed the employee
is to the Organization, the greater the effort exerted by the employee in performing tasks. Highly
committed employees wish to remain associated with the Organization and advance
Organizational goals, and are therefore less likely to leave (employee retention is seen to be
highest with all forms of commitment). This highlights a positive relationship between the level
of Organizational commitment and job tenure13, which ensures a return on the investment in
careful selection, training and development. However having a low labour turnover is not always
a positive factor. For example in times of change some turnover is desirable to bring in new
people, new ideas, and more diverse thinking. In addition, if employees with continuance
commitment are staying in the Organization because they are not able to get jobs elsewhere this
won’t help the productivity of the Organization. Furthermore Meyer & Allen have illustrated a
positively correlated relationship between affective commitment and work attendance. In
particular “suspicious type” absences were lower i.e., a committed worker will be more eager
about their job and more motivated to dedicate a lot of time and effort to accomplish the tasks
required.
However one must bear in mind how reliable these questions are, that simply ask the employee
whether they were off work for voluntary or involuntary reasons?
In-role job performance has been reported to be higher for employees with strong affective
commitment. The underlying assumption is that they will work harder at their jobs and perform
them better than those with weaker commitment. This has been positively correlated to self-
reported measures of work effort and to adherence
to Organizational policy these results may appear conflicting. Research undertaken by DeCotis
& Summers, 87 displayed no correlation between performance dimensions and manager’s
affective commitment. Thus we can postulate that the association between performance and
affective commitment is neither very strong nor is the effect on performance very large. Hence,
there seems to be a stronger association with extra-role behavior and affective commitment.
Employees with strong affective commitment are more willing to engage in citizenship behavior
than those with weaker affective commitment. Committed workers can be expected to exercise
responsible autonomy or self-control, removing the need for supervisory staff and producing
efficiency gains. Therefore commitment in the workforce moves away from the traditional
psychological contract of a “fair days work for a fair day’s pay” and instead to a contract, which
implies that employees will go that extra mile for the company. On the personal level, there are
benefits for strong affective commitment i.e., working in an environment in which one is positive
about has implications for reduced stress levels. Alternatively, affective commitment could lead
to negative consequences for life beyond the Organization. However Meyer & Allen have
refuted this claim. Further research has investigated the link between organizational commitment
and the delivery of service quality. Even though the link between them is not very strong, it is
found that organizational commitment is strongly tied to role ambiguity and teamwork as
antecedents of the service delivery gap. Therefore obtaining affective and normative
commitment from employees may have positive effects for the Organization, even though some
of the magnitudes of the findings are not very high.

4. Model of commitment

According to Meyer and Allen's (1991) three-component model of commitment, prior research
indicated that there are three "mind sets" which can characterize an employee's commitment to
the organization:
 a. Affective Commitment:
AC is defined as the employee's positive emotional attachment to the organization. An
employee who is affectively committed strongly identifies with the goals of the
organization and desires to remain a part of the organization. This employee commits to
the organization because he/she "wants to". In developing this concept, Meyer and Allen
drew largely on Mowday, Porter, and Steers's (1982) concept of commitment, which in
turn drew on earlier work by Kanter (1968).

b. Continuance Commitment:
The individual commits to the organization because he/she perceives high costs of losing
organizational membership (cf. Becker's 1960 "side bet theory"), including economic
costs (such as pension accruals) and social costs (friendship ties with co-workers) that
would be incurred. The employee remains a member of the organization because he/she
"has to".

c. Normative Commitment:
The individual commits to and remains with an organization because of feelings of
obligation. These feelings may derive from many sources. For example, the organization
may have invested resources in training an employee who then feels a 'moral' obligation
to put forth effort on the job and stay with the organization to 'repay the debt.' It may also
reflect an internalized norm, developed before the person joins the organization through
family or other socialization processes, that one should be loyal to one's organization.
The employee stays with the organization because he/she "ought to".

5. Ways to View Organizational Commitment

What constitutes commitment in organizations? In one view, commitment is the total capacity to
act in ways that meet the organization's goals and interests. Although a simple enough definition,
it is inadequate. The problem is that commitment has now been defined in a number of widely
varying ways. The sociologist Etzioni argues that commitment—and the authority that
organizations have over members—is rooted in the nature of employee involvement in the
organization.

Involvement takes one of three forms, ranging from total commitment to no commitment at all.
Moral involvement, based on positive and intense orientation to the organization, results from
internalization of the organization's values, goals, and norms. Calculative involvement is less
intense and rests on an exchange relationship between the individual and the organization.
People become committed to an organization to the extent that they perceive some beneficial or
equitable exchange relationship.
Alimentative involvement is a lack of commitment, occurring when members feel constrained by
circumstances to belong to the organization but do not identify with it.

The management guru Kantar takes a different view of commitment, arguing that different types
of commitment result from different behavioral requirements placed on members by the
organization. Again, involvement takes three forms, but here the forms may be interrelated.
Continuance commitment has to do with a member's dedication to the survival of the
organization and results from having people make sacrifices for and investments in the
organization. Cohesion commitment is attachment to social relations in an organization; it can be
enhanced by having employees publicly renounce previous social ties or engage in ceremonies
that enhance group cohesion. Control commitment is a member's attachment to the norms of an
organization that shape behavior in desired ways. It exists when employees believe that the
organization's norms and values are important guides to their behavior.

Organizational researchers and social psychologists view commitment quite differently.

Organizational researchers study attitudinal commitment, focusing on how employees identify
with the goals and values of the organization. This is commitment viewed primarily from the
standpoint of the organization. Social psychologists study behavioral commitment, focusing on
how a person's behavior serves to bind him to the organization. Once behavior shows
commitment, people must adjust their attitudes accordingly, which then influence their
subsequent behavior.
Thus a cycle begins: behavior shapes attitudes and the shaped attitudes in turn shape behavior.

Thus we have at least three different ways to view organizational commitment. If we accept all
three notions, we will look in different places for evidence of commitment. We will look at
exchange relationships as behaviors evidencing commitment, and acceptance of organizational
norms and values as attitudes showing commitment. A broad view of commitment should lead
managers to many different sources and manifestations of it. Most views of commitment treat it
as a global concept: one is or is not committed to the organization as an entity. A more
differentiated view, in which employees are thought to be more or less committed to various
facets of the workplace, might be more helpful.
The earlier discussion of occupational communities suggests that managers must consider
employees' other commitments as well. Employees are not only committed to the organization to
a greater or lesser degree, but as individuals with multiple roles also have other commitments.
These include such obvious connections as those of family or community, but they also embrace
membership in occupational communities or in other associations. Managers need to be sensitive
to these other motivations that may influence an employee's behavior or attitudes.

Another interesting manifestation of commitment is the phenomenon known as whistle-blowing,

or publicizing unethical, illegal, or immoral behavior. For the individual, whistle-blowing may
be the last resort, the only step left open; for the organization it is extremely threatening when
negative information reaches the press. Whistle-blowing may occur because the whistle-blower
feels tremendously committed to the organization; it is, after all, borne of an impulse to reform
an evil and few people are willing to risk punishment to reform what they do not value. In this
view the whistle blower is the defender of the organization's true values and the management that
punishes the behavior is the deviant. Whistle-blowing may have the beneficial effect for the
organization, then, of spawning change, especially when it can be made to overseeing bodies, as
with all the government examples of whistle-blowing.
Most of the work on whistle-blowing is descriptive and philosophical. Organizations are
probably more apt to retaliate against whistle-blowers they value, perhaps because of their
potential threat. They may also retaliate against those who are vulnerable because they lack
public support. People often fail to blow the whistle when organizational conditions suggest they
should. This hesitance undoubtedly results from fear of reprisal and skepticism that their
organizations will take

6. The Expectancy Model

In consideration of the management and leadership styles within an organization, and how they
affect the commitment of the staff to the organization, it is also necessary to take into
consideration the expectations of the staff when they enter the organization. The expectancy
model states, “People are motivated to work when they expect to achieve things they want from
their jobs. A basic premise of the expectancy model is that employees are rational people. They
think about what they have to do to be rewarded and how much the rewards mean to them before
they perform their jobs.”
In addition, Hellriegel, Slocum, and Woodman also explained, individuals decide their jobs that
are based on their needs, motivations and past experiences. “The expectancy model holds that
work motivation is determined by individual beliefs regarding effort-performance relationships
and the desirability of various work outcomes associated with different performance levels.”
(Hellriegel, Slocum, Woodman, 2001, p.147) Decisions about how much to produce, how much
to work and the quality of workmanship (job-performance decisions) are solely depend on the
individual’s level of motivation.
The research of this study will add to this statement from Hellriegel, Slocum, and
Woodman. Staff of an organization can enter into the work contract with a moderate level of
expectancy, and an emotional connectedness to the reward they expect. However, the
organizational management can, and will have a transformational effect on that emotional
contract, and influence their staff positively or negatively.

7. Psychological Contracts
The idea of a psychological contract coincides with the expectancy model. When a worker can
voluntarily make an agreement with an employer to provide services for compensation, there is a
negotiated contract. The worker agrees that his or her material and non-material compensation is
of equal or more value than the time, energy and effort (s) he will supply to the organization.
Similarly, the organization agrees to provide material and non-material compensation in return
for the resources, time, talent, and energy of the staff member. This relation began to evolve as
soon as a society moves away from a feudal, or slave based worker – master relationship.
However, these psychological contracts become of more importance when the diversity of a
population increases. The reasons Tom Jones works for ABC Widget company may be
completely different than the psychological goals of Jim Smith. In order for the organization to
retain their services, (and thus reduce escape the high cost of turn overs) the organization must
be able to properly evaluate these emotional, or psychological contracts and negotiate them
successfully with the workers. The worker and the organization assume a debt upon entering the
relationship. If this debt is not paid, to the reasonable expectation of either party, either or both
are free to find staff / employment elsewhere.

8. Employee Empowerment
One of the most frequently referenced definitions of employee empowerment is that offered by
Conger and Kanungo (1988). They define empowerment as a process of enhancing feelings of
self-efficacy among organizational members through the identification of conditions that foster
powerlessness, and through their removal by both formal organizational practices and informal
techniques of proving efficacy information. This definition implies strengthening the effort-to-
performance expectancy or increasing employee feeling of self-efficacy. According to Conger
and Kanungo, the effect of empowerment is the initiation and persistence of behavior by
empowered employees to accomplish task objectives. This definition is rooted in management
theory of power and authority delegation that gives an employee the right to control and use
organizational resources to bring about desired organizational outcomes.
Thomas and Velthouse (1990), however, argued that the concept of empowerment is much more
complex and could not be fully explained in a one dimensional construct such as self-efficacy.
They therefore define empowerment as an intrinsic task motivation that manifests itself in four
cognitions (meaningfulness, competence, impact and choice or self-determination), reflecting an
individual’s orientation to his or her work roles. By intrinsic task motivation, they mean, a
positively valued experiences that an individual derives directly from a task that produces
motivation and satisfaction.
Meaningfulness is the value of the task goal or purpose in relation to the individual’s own ideals
or standards, and competence is the degree to which a person can perform task activities
skillfully. Impact, on the other hand, is the degree to which behavior is seen as making a
difference in terms of accomplishing the purpose of the task, while choice or self-determination
is the causal responsibility for a person’s actions. It reflects independence in the initiation and
continuation of work behavior and processes (Deci, Connell, and Ryan, 1989).
Employee empowerment literature identifies contextual factors and strategies that promote and
support empowerment. For example, Burke (1986) suggests that a way to empower employees is
to express confidence in them together with establishing realistic high performance expectations
for them. Block (1987) adds the creation of opportunities for employees to participate in decision
making, and giving employees
Autonomy from bureaucratic constraints as empowerment strategies. Comparatively, Benis and
Nanus (1985) suggest the setting of performance objectives for employees that are challenging
and inspiring. Also, Oldham (1976), Kanter (1979), Strauss (1977), Hackman and Oldham
(1975) suggest performance-based reward systems and enriched jobs that provide autonomy and
control, task identity, opportunities for career advancement and task meaningfulness as ways to
empower employees. At the organizational level, however, McClelland (1975) and House (1988)
suggest that empowerment could be achieved through employee selection and training programs
designed to provide required technical skills together with a culture which encourages self-
determination and collaboration instead of competition.
A practical and process oriented definition of empowerment was offered by Bowen and Lawler
(1992). They define employee empowerment as sharing with front-line employees, information
about an organization’s performance, information about rewards based on the organization’s
performance, knowledge that enables employees to understand and contribute to organizational
performance, and giving employees the power to make decisions that influence organizational
direction and performance. According to Zemke and Schaaf (1989), employee empowerment
means turning the front-line loose, and encouraging and rewarding employees to exercise
initiative and imagination.

9. Organizational Commitment Questionnaire

The Organizational Commitment Questionnaire (ORQ) is a measure that was initially developed
by Porter and Smith in 1970 to measure commitment within an organization. The measure was
created with commitment “being a generally affective reaction to the organization rather than
specifically to the work.” This relates directly to organizational diagnosis, in that it measures
employees’ commitment to the organization oppose to their particular jobs. In this context,
organizational commitment is “defined as the strength of an individual’s identification with and
involvement in a particular organization, and is said to be characterized by three factors: a strong
belief in, and acceptance of, the organization’s goals and values; a readiness to exert
considerable effort on behalf of the organization; and a strong desire to remain a member of the
organization.”
This organizational commitment measure was and still is being utilized by many. In the 1970’s,
people such as Kerr and Jermeir used this measure to analyze a group of 113 police officers.
Ivancevich employed the OCQ in a study of 154 engineers and O’Reilly and Roberts diagnosed
562 members of a high technology naval aviation unit. Today organizations are still relying on
this measure to diagnose organizational commitment. I found several articles that entailed
studies on commitment using the OCQ.
As noted in the Journal of Psychology (1998), a study was done on 150 employees of a mid-
Atlantic insurance company. They used the short form of the OCQ to measure commitment,
which resulted in a coefficient alpha of 0.91. According to the Academy of Management
Journal (1995), a study was performed by a large multinational firm in the southeastern United
States examining 231 managers and 339 subordinates. In their research, they also used the OCQ
to measure employees’ commitment to the organization (coefficient alpha 0.87). In addition, the
Journal of International Business Studies indicated that this measurement was even being used
internationally. According to this article, the Japanese used the OCQ to measure commitment in
a study that “involved Japanese firms and firms from eleven other countries where business is
conducted primarily in English.” Their sample identified a population of 880 with a coefficient
alpha of 0.87.
This measure has proven to be reliable and valid over and over. “The Organizational
Commitment Questionnaire has been used successfully with high reliability in over thirty-five
studies in organizational behavior.” Individuals such as, Dubin, Champoux and Porter(1975),
Mowday, Porter, and Dubin(1974), Porter, Crampon, and Smith(1976), Porter, Steers, Mowday,
and Boulian(1974), Steers(1977), Steers and Spencer(1977), and Stone and Porter(1975), has
proven this measure to be a competent tool to measure organizational commitment. The OCQ
coefficient alpha is evidenced to remain consistently high in the studies done by the
aforementioned names in addition to other people who used the questionnaire years later and
concluded a coefficient between the confirmed ranges, 0.82 to 0.93 with a median of 0.90.
The Organizational Commitment Questionnaire has 15 items, six of which are negatively
phrased and reversed scored with a seven-point response dimension. The questionnaire is as
follows:

1. I am willing to put in a great deal of effort beyond that normally

expected in order to help this organization be successful.
2. I talk up this organization to my friends as a great organization to work
for.
3. I feel very little loyalty to this organization(R).
4. I would accept almost any type of job assignment in order to keep
working for this organization.
5. I find that my values and the organization’s values are very similar.
6. I am proud to tell others that I am part of this organization.
7. I could just as well be working for a different organization as long as
the type of work were similar(R).
8. This organization really inspires the very best in me in the way of job
performance.
9. It would take very little change in my present circumstances to cause
me to leave this organization(R).
10. I am extremely glad that I chose this organization to work for, over
others I was considering at the time I joined.
11. There’s not too much to be gained by sticking with this organization
indefinitely(R).
12. Often, I find it difficult to agree with this organization’s policies on
important matters relating to its employees(R).
13. I really care about the fate of this organization.
14. For me this is the best of all possible organizations for which to work.
15. Deciding to work for this organization was a definite mistake on my
part(R).
 The responses included – Strongly disagree; Moderately disagree; Slightly
disagree; Neither disagree nor agree; Slightly agree; Moderately agree;
Strongly agree; scored 1 to 7 respectively.

The OCQ could be used to measure employees’ commitment to an organization. For example the
OCQ could be used to measure the sales force’s commitment to HFP, in the HFP case. The
organization could have given this questionnaire to several or all departments within the
company and compared them to the sales force. If the sales force’s commitment rated low on the
measurement’s scale, then the regional sales managers would know that commitment within their
department was nonexistent; therefore, causing problems to emerge. The measurement would
also alert the managers, that if commitment were down, then other areas such as job satisfaction
and the acceptance of the organization’s goals would also be minimal. After determining the
problem, managers would be able to go into their departments and make provisions.

10. Employee Retention,

A set of actions designed to keep good employees once they have been hired.

a. Strategic Emphasis on Employee Retention

Retaining good employees is essential for a internal labor orientated company. The
competitive advantage here comes from developing a loyal workforce that consistently
excels at satisfying customer demands. Combining an internal labor orientation with a
cost-reduction strategy gives us the Loyal Soldier HR strategy. When using this strategy,
retaining employees reduces recruiting expenses and provides workers with a sense of
security that persuades them to work for slightly lower wages than they might be able to
earn at competing firms. Retaining good employees is essential for a internal labor
orientated company. The competitive advantage here comes from developing a loyal
workforce that consistently excels at satisfying customer demands. Combining an internal
labor orientation with a cost-reduction strategy gives us the Loyal Soldier HR strategy.
When using this strategy, retaining employees reduces recruiting expenses and provides
workers with a sense of security that persuades them to work for slightly lower wages
than they might be able to earn at competing firms. When an internal labor orientation
and a differentiation strategy are combined, You have a Committed Expert HR strategy.
Employee retention helps build a workforce with unique skills that employees of other
organizations do not have. These skills are critical for producing exceptional products
and services that cannot be easily duplicated by competitors. Organizations pursuing
 differentiation rely on highly skilled employees who have specialized knowledge and
ability.
An employee who is not capable of providing skilled inputs does not contribute, making
termination of nonperforming employees critical for organizations that seek to produce
premium goods and services. Strategic Emphasis on Employee Separation Organizations
pursuing a Committed Expert HR strategy focus on terminating the employment of low
performers soon after they are hired. They identifying individuals who do not fit the
organizational culture, or who appear unable to develop needed skill and motivation,
reduces the cost of bad hiring decisions. Organizations with a Free Agent HR strategy
benefit from frequently replacing employees with others who bring new skills and a fresh
perspective. Employee separation is a common occurrence in such organizations, and
ongoing efforts are needed to ensure that disruptions from frequent turnover are
minimized as much as possible. Strategic Emphasis on Employee Separation An
organization pursuing a Loyal Soldier HR strategy seeks to minimize employee
separation. The primary goal is to hire young employees who stay with the organization
for long careers. Having high performers is not as critical in these cost-focused
organizations, which means that termination of employment is only necessary when a
worker clearly fails to meet even minimum expectations.
b. Turnover
There are three types of turnover.
 Voluntary turnover
In which the employee makes the decision to leave.
 Involuntary turnover
In which the organization terminates the employment relationship.
 Dysfunctional turnover
Occurs when an employee whose performance is at least adequate voluntarily quits.

c. Job Satisfaction
The employee’s decision to leave begins with a sense of low job satisfaction.
Job satisfaction represents a person’s emotional feelings about his or her work. When
work is consistent with employees’ values and needs, job satisfaction is likely to be high.

d. Practices That Reduce Turnover

 Another method for retaining employees is through socialization, this is the process of
acquiring the knowledge and behaviors needed to be a member of an organization.
Effective socialization occurs when employees are given critical information that helps
them understand the organization. Such as the new employee orientation session. As
employees acquire information during the socialization process, their feelings of fit with
the organization increase, and employees who perceive that they fit are more likely to
stay with an organization. Perceived organizational support is another factor that
influences employee [Link] is the beliefs, by the employees, that the organization
values their contribution and cares about their well-being. Employees who perceive
greater support are more committed to sticking with the organization and feel a stronger
desire to help the organization succeed.

11. Employee retention Tactics to improve job satisfaction

Every successful practice starts with a strong team of highly motivated staff. With constant
changes in insurance billing and clinical procedures, your staff’s proficiency, competency and
consistency are key elements of your success.

Most doctors think that once they train their staff, the work is done. The initial training is just the
beginning; ongoing staff training is essential. Education is just one aspect of a stable team;
retention is another. That is why it is more important than ever to offer a superior benefits
package to your employees, especially when the performance of your staff affects the success of
your practice.

Does employee retention matter? Absolutely! Employee turnover is always costly. How much
money do you spend on searching for a new employee? How many hours do you spend sorting
resumés and interviewing prospective employees? How much time do you invest in the initial
training?

Failing to retain a key employee is costly. Various estimates suggest that losing a chiropractic
assistant can cause a 20 percent to 30 percent reduction in patient visits and collections. This is
why cultivating long-term employ-ees is invaluable to your practice. Not only does staff turnover
affect your bottom line, but it also causes un-necessary stress for the doctor(s) and other staff
members.

So what causes an employee to quit?

  Feeling undervalued,
 Lack of feedback on performance,
 Insufficient explanation of procedures to be completed,
 Inadequate organizational communication,
 A doctor’s underestimation of their staff’s needs,
 Inadequate training,
 Lack of earning potential or poor perception of earning potential,
 Lack of employee benefits.

These causes fall into three categories: communication, training and economic incentives.

12. COMMUNICATION:

You have heard that communication is key. Employees want to know how they are doing. Make
an effort to communicate every day with each employee about the job they are doing.

Of course, formal evaluations are also very useful to both the doctor and the staff. Evaluate each
staff member after 90 days of employment, six months after that and on an annual basis after
that. After each evaluation, review the employee’s entire compensation package. If an employee
is productive, motivated and on task, make sure you reward him or her, but try not to link
reviews and raises. This tends to make reviews a negative experience.

Use weekly staff meetings to keep everyone, including yourself, encouraged and up-to-date.
Create an employee manual and a procedural manual for your clinic. When your staff knows
what they are supposed to do, they can exceed your expectations. 

13. TRAINING
Keeping up with the constant changes in insurance billing and clinical procedures requires a
proficient, competent and consistent team. Investing in staff training allows you to set
standardized procedures that every member of your team will be able to follow, and will improve
your prac-tice’s efficiency. Three things you can provide in-house to every employee are clear
and complete instruction on procedures, the right tools for the job (such as up-to-date coding
manuals and efficient billing software) and adequate time and training to learn how to do their
job well.
Offering professional development opportunities is another tactic for retaining quality
employees. Attending professional workshops, seminars and continuing education classes puts
employees in charge of their own careers, helps keep them motivated and provides a support
system for their skills and talents.

The contacts they make through these opportunities form a network of knowledge and support
that they can use in their job, which directly benefits your practice. If you invest in your
employees, they will invest in you. They will put in maximum effort, vigorously collect for all
services rendered and look for new ways to increase your patient base.

14. ECONOMIC INCENTIVES

Another way to invest in and retain your employees is by offering benefits. The Chiropractic
Economics 2005 Salary and Expense Survey indicates that most chiropractors provide incentives
or bonuses (54.7 percent surveyed) and paid time off (67.8 percent).

Tailor these benefits to suit the needs and wants of your employees. And communicate the value
of the benefits you offer to your employees as their “total compensation package.” (See sidebar,
“Which benefits should you provide?” for more insight on specific economic incentives to offer.)

See your team members for what they are — your most valuable resource for the continued
success of your practice — and treat them accordingly. Do not fall victim to chronic staff
turnover by failing to communicate your expectations, provide the right tools for the job or offer
a competitive benefits package. If you don’t provide these things, your staff will seek an
employer who does.

15. Employee Turnover

In a human resources context, turnover or labor turnover is the rate at which an
employer gains and loses employees. Simple ways to describe it are "how long
employees tend to stay" or "the rate of traffic through the revolving door." Turnover is
measured for individual companies and for their industry as a whole. If an employer is
said to have a high turnover relative to its competitors, it means that employees of that
company have a shorter average tenure than those of other companies in the same
industry. High turnover can be harmful to a company's productivity if skilled workers are
often leaving and the worker population contains a high percentage of novice workers

a. Costs
 When accounting for the costs (both real costs, such as time taken to select and recruit a
replacement, and also opportunity costs, such as lost productivity), the cost of employee
turnover to for-profit organizations has been estimated to be up to 150% of the
employees' remuneration package.[2] There are both direct and indirect costs. Direct costs
relate to the leaving costs, replacement costs and transitions costs, and indirect costs
relate to the loss of production, reduced performance levels, unnecessary overtime and
low morale.

b. Internal vs. external turnover

Like recruitment, turnover can be classified as 'internal' or 'external'. [3] Internal turnover
involves employees leaving their current positions and taking new positions within the
same organization. Both positive (such as increased morale from the change of task and
supervisor) and negative (such as project/relational disruption, or the Peter Principle)
effects of internal turnover exist, and therefore, it may be equally important to monitor
this form of turnover as it is to monitor its external counterpart. Internal turnover might
be moderated and controlled by typical HR mechanisms, such as an internal recruitment
policy or formal succession planning.

c. Skilled vs. unskilled employees

Unskilled positions often have high turnover, and employees can generally be replaced
without the organization or business incurring any loss of performance. The ease of
replacing these employees provides little incentive to employers to offer generous
e7mployment contracts; conversely, contracts may strongly favour the employer and lead
to increased turnover as employees seek, and eventually find, more favorable
employment.

However, high turnover rates of skilled professionals can pose as a risk to the business or
organization, due to the human capital (such as skills, training, and knowledge) lost.
Notably, given the natural specialization of skilled professionals, these employees are
likely to be re-employed within the same industry by a competitor. Therefore, turnover of
these individuals incurs both replacement costs to the organization, as well as resulting in
a competitive disadvantage to the business.

d. Voluntary vs. involuntary turnover

Practitioners can differentiate between instances of voluntary turnover, initiated at the
choice of the employee, and those involuntary instances where the employee has no
choice in their termination (such as long term sickness, death, moving overseas, or
employer-initiated termination).

Typically, the characteristics of employees who engage in involuntary turnover are no

different from job stayers. However, voluntary turnover can be predicted (and in turn,
controlled) by the construct of turnover intent.
e. Causes of high or low turnover

High turnover often means that employees are unhappy with the work or compensation,
but it can also indicate unsafe or unhealthy conditions, or that too few employees give
satisfactory performance (due to unrealistic expectations or poor candidate screening).
The lack of career opportunities and challenges, dissatisfaction with the job-scope or
conflict with the management have been cited as predictors of high turnover.[4]

Low turnover indicates that none of the above is true: employees are satisfied, healthy
and safe, and their performance is satisfactory to the employer. However, the predictors
of low turnover may sometimes differ than those of high turnover. Aside from the fore-
mentioned career opportunities, salary, corporate culture, management's recognition, and
a comfortable workplace seem to impact employees' decision to stay with their employer.

Many psychological and management theories exist regarding the types of job content
which is intrinsically satisfying to employees and which, in turn, should minimise
external voluntary turnover. Examples include Hertzberg's Two factor theory,
McClelland's Theory of Needs, and Hackman & Oldham's Job Characteristics Model [5]

f. Investments

Alternatively, low turnover may indicate the presence of employee 'investments' (also
known 'side bets') [6] in their position: certain benefits may be enjoyed while the employee
remains employed with the organization, which would be lost upon resignation (e.g.
health insurance, discounted home loans, redundancy packages, etc). Such employees
would be expected to demonstrate lower intent to leave than if such 'side bets' were not
present.

g. How to prevent turnover

Employees are important in any running of a business; without them the business would
be unsuccessful. However, more and more employers today are finding that employees
remain for approximately 23 to 24 months, according to the 2006 Bureau of Labor
Statistics. The Employment Policy Foundation states it costs a company an average of
$15,000 per employee, including separation costs, paperwork, unemployment; vacancy
costs, including overtime or temporary employees and replacement costs including
advertisement, interview time, relocation, training and decreased productivity when
 colleagues depart. Providing a stimulating workplace environment in which fosters
happy, motivated and empowered individuals, which lowers employee turnover and
absentee rates. Promoting a work environment that fosters personal and professional
growth promotes harmony and encouragement on all levels, so the effects are felt
company wide.

Continual training and reinforcement develops a work force that is competent, consistent,
competitive, effective and efficient. Beginning on the first day of work, providing the
individual with the necessary skills to perform their job is important. Before the first day,
it is important the interview and hiring process expose new hires to an explanation of the
company, so individuals know whether the job is their best choice. Networking and
strategizing within the company provides ongoing performance management and helps
build relationships among co-workers. It is also important to motivate employees to focus
on customer success, profitable growth and the company well-being. Employers can
keep their employees informed and involved by including them in future plans, new
purchases, policy changes, as well as introducing new employees to the employees who
have gone above and beyond in meetings. Early engagement and engagement along the
way, shows employees they are valuable through information or recognition rewards,
making them feel included. When companies hire the best people, new talent hired and
veterans are enabled to reach company goals, maximizing the investment of each
employee. Taking the time to listen to employees and making them feel involved will
create loyalty, in turn reducing turnover allowing for growth.

16. Calculation

Step 1. Calculate the average number of employees The number of employees is calculated by
adding the number at the start of the period, to the number at the end of the period. Then dividing
by 2 to arrive at the average number of employees.

For example: At the start of the year the firm employed 1000 people. At the end of the year the
firm employed 1200. To arrive at the average we add together 1000 + 1200 = 2200. Then divide
by 2 to get our answer 2200/2 = 1100 This figure is the average number of people employed
during the period.

Step 2. Calculate the number of departures during the period The key here is to make sure
that we only include those departures that are actually relevant. That means those that come
within the definition we are using. So for the definitions we are using in this example the
relevant figures are: Total number of exits = 220 Voluntary = 110 Early = 55

Step 3. Divide departures by number of employees To arrive at our final figures, we divide the
number of relevant departures by the average number of employees. Then multiply by 100 to get
the percentage rate. For total turnover we have: 220 / 1100 (x 100) = 20% For voluntary turnover
we have: 110/1100 (x100) = 10% For early turnover we have: 55/1100 (x100) = 5% Calculating
Employee Turnover.

However, please keep in mind that there are a number of complications:

Let's say there were 100 employees at the beginning of the year, and 100 employees at the end of
the year, and at the end of the year, 84 of those employees were the same ones as were there the
previous year. You might say that the turnover rate was 16%.

But suppose one of those 16 who left was actually replaced three times. The employee quit in
January, the replacement quit in April, and another person was hired who lasted only until
November. Then you might want to count every time an employee left the company and another
one was hired - in this case you'd get 18%.

Another complication: suppose the work force is 100 at the beginning and 90 at the end of the
year. Perhaps 16 people have left, but only 6 have been hired during the year, while 2 more were
hired and retired within the same year. You might define turnover as 18/100 or as 18/90, or as
18/95, since 95 is the average of 90 and 100. Instead of 95, you might want to do a fancier
average, where you actually add up the number of employees on each day of the year, and divide
the total by 365.

One more complication: who decided it was a calendar year that we should use for sampling the
turnover rate? Perhaps there was no turnover at all for 3 years prior, and then a shift in
management caused a lot of people to leave this year. Then a more representative measure would
average over 2 or 3 or 4 years. Maybe you'd want to average the turnover in each month of the
last 48, but weight recent months more heavily than earlier months.

17. Models Of Turnover

Over the years there have been thousands of research articles exploring the various aspects of
turnover, and in due course several models of employee turnover have been promulgated. The
first model and by far the one attaining most attention from researcher, was put forward in 1958
by March & Simon. After this model there have been several efforts to extend the concept. Since
1958 the following models of employee turnover have been published.

 March and Simon (1958) Process Model of Turnover

 Porter & Steers (1973) Met Expectations Model
 Price (1977) Causal Model of Turnover
 Mobley (1977) Intermediate Linkages Model<br
 Hom and Griffeth (1991) Alternative Linkages Model of Turnover
 Whitmore (1979) Inverse Gaussian Model for Labour Turnover
 Steers and Mowday (1981) Turnover Model
 Sheridan & Abelson (1983) Cusp Catastrophe Model of Employee Turnover
 Jackofsky (1984) Integrated Process Model
 Lee et al. (1991) Unfolding Model of Voluntary Employee Turnover
 Aquino et al. (1997) Referent Cognitions Model
 Mitchell & Lee (2001) Job Embeddedness Model

18. Employee Retention: What Employee Turnover Really Costs

It's one of the largest costs in all different types of organizations, yet it's also one of the
most unknown costs. It's employee turnover.

Companies routinely record and report costs such as wages and benefits, Workman's
Compensation Insurance, utilities, materials, and space, yet most companies have no and report
the cost of employee turnover. It can be much higher than you think.

How Much is it Costing You?

Several well-regarded studies have recently estimated the cost of losing an employee:

 SHRM, the Society for Human Resource Management, estimated that it costs
$3,500.00 to replace one $8.00 per hour employee when all costs -- recruiting,
interviewing, hiring, training, reduced productivity, et cetera, were considered. SHRM's
estimate was the lowest of 17 nationally respected companies who calculate this cost!
 Other sources provide these estimates: It costs you 30-50% of the annual salary of
entry-level employees, 150% of middle level employees, and up to 400% for specialized,
high level employees!
 Do a quick calculation: Think of a job in your organization where there has been some
turnover, perhaps supervisors. Estimate their annual average pay and the number of
supervisors you lose annually. For example, if their average annual pay is $40,000,
multiply this by .125% (or 125% of their annual pay, a reasonable cost estimate for
supervisors). This means it costs $50,000 to replace just one supervisor. If this company
loses ten supervisors a year, then 10 times $50,000 equals $500,000 in replacement costs
for just supervisors. This is the bottom line cost. The top line cost? If the company's profit
margin is 10%, then it costs $5,000,000 in revenues to replace these ten supervisors.

a. Do These Numbers Seem Unbelievable?

Here's an actual calculation from a well-regarded organization in my community. The HR

Manager of this human services organization (housing for disabled persons, sheltered
workshops, etc.), estimated that 30 entry level people leave his organization on average
every quarter.

This averages out to ten people per month. Let's be extra conservative and shave SHRM's
estimate (see above) down to $3,000.00 to replace each employee.

This amounts to $30,000 per month, or $1,000.00 in employee turnover costs every day
of the month! Annually, this totals $360,000.00.

Actual turnover costs are usually much higher than we think they are -- until we estimate
them.

You may be thinking, "Some employee turnover is unavoidable, even desirable." You're
right. Some turnover is necessary, to replace marginal or poor employees with more
productive ones and to bring in people with new ideas and expertise. However, high
turnover costs are both avoidable and unnecessary.

This is where companies need to focus their efforts. The goal is to retain valued
performers while replacing poor ones.

Most companies group both types of performers together when looking at turnover. By
doing so, they're missing the cost and significance of replacing the good performers.
b. Why Don't More Companies See This as a Costly Problem?

There are a variety of reasons this is not seen as a problem, all of which cost companies
in expertise and dollars. How many of these occur in your organization?

1. No process is in place to tabulate costs. One survey found that only 44% of its
respondents had a process in place to estimate turnover costs; 43% of companies relied
on intuition, and 13% had no process at all.

2. Costs are not reported to top management. It's a business axiom that one of the best
ways to get top management's attention is to show them what something costs. However,
most top management never gets to see turnover cost estimates because most companies
don't measure them -- or if they do, they don't report them to top management.

3. It's an inescapable cost of doing business. Except, it's not! While some turnover is
unavoidable and desirable, most turnover, especially among your better and top
performers, is largely avoidable. Thinking that turnover is just a normal cost of doing
business is the same quality of thinking which says that accidents are just an inescapable
part of being in the construction business.

4. It's an HR problem. While HR needs to be a key partner in reducing turnover cost, this
is a strategic issue requiring top management's attention and actions, in addition to HR's
efforts, to resolve it.

5. Costs are underestimated, and so they register less concern. If costs are underestimated
because the organization doesn't agree on or know what to measure, the statistics
generated either register less concern than they should, or are disputed and held in
disregard.

c. What Costs need to be Fully Estimated?

A comprehensive program measures the following costs:

o Exit costs
o Recruiting
o Interviewing
o Hiring
 o Orientation
o Training
o Compensation & benefits while training
o Lost productivity
o Customer dissatisfaction
o Reduced or lost business
o Administrative costs
o Lost expertise
o Temporary workers

There needs to be advance agreement among Human Resources, Finance, and Operations
as to which cost measures will be considered valid. Then, it has to be measured and
reported.

6. Waiting until there's a crisis. I was amazed when the executive director of one
organization told me she knew that one of her capable managers was unhappy, but
decided it wasn't necessary to take action because she hadn't received a letter of
resignation yet.

Prevention is what works best. Begin to measure your turnover costs and, very
importantly, look at who is leaving so you'll know if you're retaining your best people.

The time to do this is now. Waiting until there's a crisis to take action limits your options
and success rate. It also often triggers the common response of offering more money to
get someone to stay, instead of fixing the original problem.

d. Why Do So Many Retention Efforts Fail?

These are among the most common reasons company retention efforts fail, even when
they're implemented by capable people.

1. No assessment, so ineffective solutions are chosen. In their hurry to correct a costly

problem, companies often forgo conducting a relatively brief and cost-efficient
assessment in order to correct the situation faster. However, implementing a solution
without diagnosing who is leaving, and why they're leaving often results in solutions that
are incapable of solving the root causes behind turnover.
Diagnosing the reasons behind turnover always pays for itself. Don't start without an
assessment.

2. Implementing too many solutions instead of the most effective solutions. Managers
often brainstorm a number of plausible solutions, then implement many of them --
especially those favored by top management. However, what is most needed is to select
and implement a limited number of solutions which will be most effective at solving the
problem. Implementing too many solutions, even good ones, will diffuse your resources
and weaken your efforts and success.

3. No way of measuring success to know what works. How do you know which retention
solutions you've implemented are working effectively and which aren't, where you need
to make refinements, and what strategies you need to drop if you don't have a way of
measuring your results?

How Do We Do a Better Job of Retaining Employees -- Especially Our Most Valuable

Ones?

First, rank your employees in three categories: best performers, middle performers, and
lowest performers. Your objective is to retain your top performers; develop and retain
your middle performers, turning them into near-top or top performers if possible; and
potentially replace your lowest performers.

Second, agree internally on the measures you'll use to calculate turnover costs. Be certain
you're taking all costs into consideration. Most organizations greatly underestimate them.

Third, report turnover costs to top management on a monthly, quarterly, and annual basis.

When turnover costs are unacceptably high, or higher than your industry's average, do an
assessment. Find out who is leaving and why they're leaving. Exit interviews can help
you find out why.

You need to know if it is your top, middle, or lowest performers who are leaving so you
can gauge the expertise level leaving your organization. You're obviously going to
employ (and pay for) different strategies if your top performers are voluntarily leaving,
compared to middle or lowest level performers.
 Develop solutions capable of solving the problems you uncover, and only implement a
limited number of them.

Measure the success of your retention efforts, and refine them.

e. Two Very Key Strategies to Save a Large Amount of Time and

Money.

Very key strategy # 1: Don't wait until turnover costs become unacceptably high before
you implement an ongoing retention program. Put a retention program in place before
you have crisis situation. You not only must find out why employees leave your
organization, you must also find out why others stay.

Very key strategy # 2: Survey your top performers now in order to find out what keeps
them there, why they might leave, what type of competitive offers they may find
attractive, and what they need to be happier and more productive in their jobs. You'll do a
better job of keeping them (along with their expertise and value). You'll also find out
highly beneficial information about improvements your organization needs.

This means driving improvements in your organization by what your best people tell you,
instead of focusing on taking care of the ever-present complainers in every organization.

Just How Valuable are Retention Efforts? One source estimated that a 10% reduction in
employee turnover was worth more money than a 10% increase in productivity, or a 10%
increase in sales!

f. Top Ten Ways to Retain Your Great Employees

Key employee retention is critical to the long term health and success of your business.
Managers readily agree that retaining your best employees ensures customer satisfaction,
product sales, satisfied coworkers and reporting staff, effective succession planning and
deeply imbedded organizational knowledge and learning. If managers can cite these facts
so well, why do they behave in ways that so frequently encourage great employees to quit
their jobs?
 Employee retention matters. Organizational issues such as training time and investment;
lost knowledge; mourning, insecure coworkers and a costly candidate search aside,
failing to retain a key employee is costly. Various estimates suggest that losing a middle
manager costs an organization up to 100 percent of his salary. The loss of a senior
executive is even more costly. I have seen estimates of double the annual salary and
more.

Employee retention is critically important for a second societal reason, too. Over the next
few years while Baby Boomers (age 40 to 58) retire, the upcoming Generation X
population numbers 44 million people (ages 25-34), compared to 76 million Baby
Boomers available for work. Simply stated: there are a lot fewer people available to
work.

Employee retention is one of the primary measures of the health of your organization. If
you are losing critical staff members, you can safely bet that other people in their
departments are looking as well. Exit interviews with departing employees provide
valuable information you can use to retain remaining staff. Heed their results. You’ll
never have a more significant source of data about the health of your organization.

 A satisfied employee knows clearly what is expected from him every day at work.
Changing expectations keep people on edge and create unhealthy stress. They rob the
employee of internal security and make the employee feel unsuccessful. I’m not
advocating unchanging jobs just the need for a specific framework within which people
clearly know what is expected from them.

 The quality of the supervision an employee receives is critical to employee retention.

People leave managers and supervisors more often than they leave companies or jobs. It
is not enough that the supervisor is well-liked or a nice person, starting with clear
expectations of the employee, the supervisor has a critical role to play in retention.
Anything the supervisor does to make an employee feel unvalued will contribute to
turnover.

 The ability of the employee to speak his or her mind freely within the organization is
another key factor in employee retention. Does your organization solicit ideas and
provide an environment in which people are comfortable providing feedback? If so,
 employees offer ideas, feel free to criticize and commit to continuous improvement. If
not, they bite their tongues or find themselves constantly "in trouble" - until they leave.

 Talent and skill utilization is another environmental factor your key employees seek
in your workplace. A motivated employee wants to contribute to work areas outside of
his specific job description. How many people could contribute far more than they
currently do? You just need to know their skills, talent and experience, and take the time
to tap into it. As an example, in a small company, a manager pursued a new marketing
plan and logo with the help of external consultants. An internal sales rep, with seven
years of ad agency and logo development experience, repeatedly offered to help. His
offer was ignored and he cited this as one reason why he quit his job. In fact, the
recognition that the company didn't want to take advantage of his knowledge and
capabilities helped precipitate his job search.
 The perception of fairness and equitable treatment is important in employee
retention. In one company, a new sales rep was given the most potentially successful,
commission-producing accounts. Current staff viewed these decisions as taking food off
their tables. You can bet a number of them are looking for their next opportunity.

In another instance, a staff person, just a year or two out of college, was given $20,000 in
raises over a six month time period. Information of this type never stays secret in
companies so you know, beyond any shadow of a doubt, the morale of several other
employees will be affected. For example, you have a staff person who views her role as
important and she brings ten years of experience, an M.B.A. and a great contribution
record to the table. When she finds she is making less money than this employee, she is
likely to look for a new job. Minimally, her morale and motivation will take a big hit. Did
the staff person deserve the raises? Yes. But, recognize that there will be impact on
others.

 When an employee is failing at work, I ask the W. Edwards Deming question, “What
about the work system is causing the person to fail?” Most frequently, if the employee
knows what they are supposed to do, I find the answer is time, tools, training,
temperament or talent. The easiest to solve, and the ones most affecting employee
retention, are tools, time and training. The employee must have the tools, time and
training necessary to do their job well – or they will move to an employer who provides
them.
 Your best employees, those employees you want to retain, seek frequent
opportunities to learn and grow in their careers, knowledge and skill. Without the
opportunity to try new opportunities, sit on challenging committees, attend seminars and
read and discuss books, they feel they will stagnate. A career-oriented, valued employee
must experience growth opportunities within your organization.

 A common place complaint or lament I hear during an exit interview is that the
employee never felt senior managers knew he existed. By senior managers I refer to
the president of a small company or a department or division head in a larger company.
Take time to meet with new employees to learn about their talents, abilities and skills.
Meet with each employee periodically. You'll have more useful information and keep
your fingers on the pulse of your organization. It's a critical tool to help employees feel
welcomed, acknowledged and loyal.

 No matter the circumstances, never, never, ever threaten an employee's job or

income. Even if you know layoffs loom if you fail to meet production or sales goals, it is
a mistake to foreshadow this information with employees. It makes them nervous; no
matter how you phrase the information; no matter how you explain the information, even
if you're absolutely correct, your best staff members will update their resumes. I'm not
advocating keeping solid information away from people, however, think before you say
anything that makes people feel they need to search for another job.

 Your staff members must feel rewarded, recognized and appreciated. Frequently
saying thank you goes a long way. Monetary rewards, bonuses and gifts make the thank
you even more appreciated. Understandable raises, tied to accomplishments and
achievement, help retain staff. Commissions and bonuses that are easily calculated on a
daily basis, and easily understood, raise motivation and help retain staff. Annually, I
receive emails from staff members that provide information about raises nationally. You
can bet that work is about the money and almost every individual wants more.

Take a look at your organization Are you doing your best to retain your top talent?
Employ these ten factors in your organization to retain your desired employees and
attract the best talent, too.
Job Designation

Cumulative
Frequency Percent Valid Percent Percent
Valid Acc. Officer 1 2.0 2.0 2.0
Acc. Supervisor 1 2.0 2.0 4.0
Accounts Officer 1 2.0 2.0 6.0
Admin. Officer 1 2.0 2.0 8.0
Admn. Officer 1 2.0 2.0 10.0
Area Manager 1 2.0 2.0 12.0
Asst. Manager 9 18.0 18.0 30.0
Billing Exec. 1 2.0 2.0 32.0
COD Executive 1 2.0 2.0 34.0
COD Rep. 1 2.0 2.0 36.0
Coordinator 1 2.0 2.0 38.0
Engineer 4 8.0 8.0 46.0
Executive 1 2.0 2.0 48.0
HR Exec. 1 2.0 2.0 50.0
IBU Coordintor 1 2.0 2.0 52.0
Inventory Officer 1 2.0 2.0 54.0
Key Acc. Manager 1 2.0 2.0 56.0
Manager 7 14.0 14.0 70.0
Manager EME 1 2.0 2.0 72.0
Manager MIS 1 2.0 2.0 74.0
Marketing Exec. 1 2.0 2.0 76.0
Marketing Officer 1 2.0 2.0 78.0
Marketint Rep. 1 2.0 2.0 80.0
Network Engineer 1 2.0 2.0 82.0
PS 1 2.0 2.0 84.0
Sales officer 1 2.0 2.0 86.0
Sales Officer 3 6.0 6.0 92.0
SEO Analyst 1 2.0 2.0 94.0
Sr. Engineer 1 2.0 2.0 96.0
Sr. HR Exec. 1 2.0 2.0 98.0
Sr. QC & CC 1 2.0 2.0 100.0
Total 50 100.0 100.0
Educational Qualification

Cumulative
Frequency Percent Valid Percent Percent
Valid [Link] 2 4.0 4.0 4.0
BA 1 2.0 2.0 6.0
BCS 2 4.0 4.0 10.0
BS Engr. 1 2.0 2.0 12.0
BS. Tel 1 2.0 2.0 14.0
DAE 1 2.0 2.0 16.0
Engineer 7 14.0 14.0 30.0
Graduation 6 12.0 12.0 42.0
[Link] 2 4.0 4.0 46.0
MA 4 8.0 8.0 54.0
MBA 16 32.0 32.0 86.0
MCS 3 6.0 6.0 92.0
MSc 2 4.0 4.0 96.0
MSC 1 2.0 2.0 98.0
Tel. Engr. 1 2.0 2.0 100.0
Total 50 100.0 100.0

Gender

Cumulative
Frequency Percent Valid Percent Percent
Valid Male 39 78.0 78.0 78.0
Female 11 22.0 22.0 100.0
Total 50 100.0 100.0

Background (belongs to)

Cumulative
Frequency Percent Valid Percent Percent
Valid Urban Area 39 78.0 78.0 78.0
Rural Area 11 22.0 22.0 100.0
Total 50 100.0 100.0

Matital Status

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 29 58.0 58.0 58.0
No 21 42.0 42.0 100.0
Total 50 100.0 100.0
Total experience in other organizations

Cumulative
Frequency Percent Valid Percent Percent
Valid 0 15 30.0 30.0 30.0
1 3 6.0 6.0 36.0
2 2 4.0 4.0 40.0
3 1 2.0 2.0 42.0
4 4 8.0 8.0 50.0
5 4 8.0 8.0 58.0
6 3 6.0 6.0 64.0
7 1 2.0 2.0 66.0
8 5 10.0 10.0 76.0
9 1 2.0 2.0 78.0
10 1 2.0 2.0 80.0
12 2 4.0 4.0 84.0
13 1 2.0 2.0 86.0
14 1 2.0 2.0 88.0
15 3 6.0 6.0 94.0
18 1 2.0 2.0 96.0
19 1 2.0 2.0 98.0
30 1 2.0 2.0 100.0
Total 50 100.0 100.0

S2-Generally speaking I feel satisfied with job

Cumulative
Frequency Percent Valid Percent Percent
Valid Disagree 2 4.0 4.0 4.0
Niether agree
nor disagree 11 22.0 22.0 26.0
Agree 25 50.0 50.0 76.0
Strongly Agree 12 24.0 24.0 100.0
Total 50 100.0 100.0

S1-All in all I am satisfied with job

Cumulative
Frequency Percent Valid Percent Percent
Valid Disagree 1 2.0 2.0 2.0
Niether agree
nor disagree 15 30.0 30.0 32.0
Agree 24 48.0 48.0 80.0
Strongly Agree 10 20.0 20.0 100.0
Total 50 100.0 100.0

AC3-Spending rest of career with this organization

 Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 7 14.0 14.0 14.0
Disagree 9 18.0 18.0 32.0
Niether agree nor
disagree 13 26.0 26.0 58.0
Agree 17 34.0 34.0 92.0
Strongly Agree 4 8.0 8.0 100.0
Total 50 100.0 100.0

NC1-Moral obligation for job continuition

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 6 12.0 12.0 12.0
Disagree 7 14.0 14.0 26.0
Niether agree nor
disagree 11 22.0 22.0 48.0
Agree 22 44.0 44.0 92.0
Strongly Agree 4 8.0 8.0 100.0
Total 50 100.0 100.0

OE5-Difficult to leave this organization

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 2 4.0 4.0 4.0
Disagree 13 26.0 26.0 30.0
Niether agree nor
disagree 8 16.0 16.0 46.0
Agree 18 36.0 36.0 82.0
Strongly Agree 9 18.0 18.0 100.0
Total 50 100.0 100.0

WFC4-Job stress effect on family duty

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 5 10.0 10.0 10.0
Disagree 11 22.0 22.0 32.0
Niether agree nor
disagree 11 22.0 22.0 54.0
Agree 17 34.0 34.0 88.0
Strongly Agree 6 12.0 12.0 100.0
Total 50 100.0 100.0
FWC3-Work things not accomplished due to family demands

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 9 18.0 18.0 18.0
Disagree 17 34.0 34.0 52.0
Niether agree nor
disagree 9 18.0 18.0 70.0
Agree 8 16.0 16.0 86.0
Strongly Agree 7 14.0 14.0 100.0
Total 50 100.0 100.0

FWC5-Family stress effects job performing ability

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 9 18.0 18.0 18.0
Disagree 13 26.0 26.0 44.0
Niether agree nor
disagree 13 26.0 26.0 70.0
Agree 10 20.0 20.0 90.0
Strongly Agree 5 10.0 10.0 100.0
Total 50 100.0 100.0

CE2-Fit to place of posting

Cumulative
Frequency Percent Valid Percent Percent
Valid Disagree 1 2.0 2.0 2.0
Niether agree
nor disagree 13 26.0 26.0 28.0
Agree 20 40.0 40.0 68.0
Strongly Agree 16 32.0 32.0 100.0
Total 50 100.0 100.0

CE3-Sacrfice with regard to place of posting

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 1 2.0 2.0 2.0
Disagree 4 8.0 8.0 10.0
Niether agree nor
disagree 11 22.0 22.0 32.0
Agree 14 28.0 28.0 60.0
Strongly Agree 20 40.0 40.0 100.0
Total 50 100.0 100.0

LI3-No plan to leave

 Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Agree 12 24.0 24.0 24.0
Agree 14 28.0 28.0 52.0
Niether agree nor
disagree 14 28.0 28.0 80.0
Disagree 7 14.0 14.0 94.0
Strongly Disagree 3 6.0 6.0 100.0
Total 50 100.0 100.0

First Choice - Reasons for leaving previous organizaton

Cumulative
Frequency Percent Valid Percent Percent
Valid No Organization
Commitment 6 12.0 12.0 12.0
No Aothority 4 8.0 8.0 20.0
Private Job 1 2.0 2.0 22.0
No Professional
Commitment 6 12.0 12.0 34.0
Family Responsibility 5 10.0 10.0 44.0
Personal Reasons 6 12.0 12.0 56.0
No Work place
embeddedness 2 4.0 4.0 60.0
Kinship Responsibilty 1 2.0 2.0 62.0
Better Alternative Job
Opportunity 2 4.0 4.0 66.0
No Job Satisfaction 6 12.0 12.0 78.0
Other 2 4.0 4.0 82.0
This is first job 9 18.0 18.0 100.0
Total 50 100.0 100.0
Second Choice - Reasons for leaving previous organizaton

Cumulative
Frequency Percent Valid Percent Percent
Valid No Organization
Commitment 1 2.0 2.0 2.0
No Aothority 2 4.0 4.0 6.0
Private Job 2 4.0 4.0 10.0
No Professional
Commitment 3 6.0 6.0 16.0
Family Responsibility 2 4.0 4.0 20.0
Personal Reasons 5 10.0 10.0 30.0
No Work place
embeddedness 3 6.0 6.0 36.0
Kinship Responsibilty 2 4.0 4.0 40.0
Better Alternative Job
Opportunity 8 16.0 16.0 56.0
No Job Satisfaction 7 14.0 14.0 70.0
No Organization
Embeddedness 5 10.0 10.0 80.0
Other 1 2.0 2.0 82.0
This is first job 9 18.0 18.0 100.0
Total 50 100.0 100.0

Third Choice - Reasons for leaving previous organizaton

Cumulative
Frequency Percent Valid Percent Percent
Valid No Organization
Commitment 1 2.0 2.0 2.0
No Aothority 1 2.0 2.0 4.0
Private Job 1 2.0 2.0 6.0
No Professional
Commitment 4 8.0 8.0 14.0
Family Responsibility 3 6.0 6.0 20.0
Personal Reasons 5 10.0 10.0 30.0
No Work place
embeddedness 4 8.0 8.0 38.0
Better Alternative Job
Opportunity 6 12.0 12.0 50.0
No Job Satisfaction 10 20.0 20.0 70.0
No Organization
Embeddedness 5 10.0 10.0 80.0
Other 1 2.0 2.0 82.0
This is first job 9 18.0 18.0 100.0
Total 50 100.0 100.0

JSB1-Applied for job

 Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 20 40.0 40.0 40.0
No 30 60.0 60.0 100.0
Total 50 100.0 100.0

JSB2-Appeared for interview

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 23 46.0 46.0 46.0
No 27 54.0 54.0 100.0
Total 50 100.0 100.0

JSB3-Asked friends for alternative job

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 31 62.0 62.0 62.0
No 19 38.0 38.0 100.0
Total 50 100.0 100.0
Report

Age
Job Designation Mean N Std. Deviation
Acc. Officer 36.00 1 .
Acc. Supervisor 27.00 1 .
Accounts Officer 26.00 1 .
Admin. Officer 28.00 1 .
Admn. Officer 29.00 1 .
Area Manager 42.00 1 .
Asst. Manager 34.11 9 6.954
Billing Exec. 22.00 1 .
COD Executive 27.00 1 .
COD Rep. 24.00 1 .
Coordinator 25.00 1 .
Engineer 30.25 4 7.411
Executive 24.00 1 .
HR Exec. 25.00 1 .
IBU Coordintor 34.00 1 .
Inventory Officer 24.00 1 .
Key Acc. Manager 29.00 1 .
Manager 32.71 7 4.152
Manager EME 38.00 1 .
Manager MIS 36.00 1 .
Marketing Exec. 24.00 1 .
Marketing Officer 24.00 1 .
Marketint Rep. 22.00 1 .
Network Engineer 24.00 1 .
PS 25.00 1 .
Sales officer 27.00 1 .
Sales Officer 41.00 3 9.849
SEO Analyst 23.00 1 .
Sr. Engineer 29.00 1 .
Sr. HR Exec. 25.00 1 .
Sr. QC & CC 32.00 1 .
Total 30.62 50 6.761
 Correlations

Third
Choice -
Reasons
Number of other FWC1-Family for leaving
organization that OE1- demand LI2-Leave previous
Gend served before Organization interfere with as soon as organizato
er this job Attachement job activity possible n
Gender Pearson Correlation 1 -.314(*) -.073 .089 -.102 .114
Sig. (2-tailed) .026 .614 .539 .483 .430
N 50 50 50 50 49 50
Number of other Pearson Correlation
-.314(
organization that served 1 .000 .006 -.050 -.378(**)
*)
before this job
Sig. (2-tailed) .026 .998 .968 .734 .007
N 50 50 50 50 49 50
OE1-Organization Pearson Correlation
-.073 .000 1 .085 -.154 -.057
Attachement
Sig. (2-tailed) .614 .998 .556 .289 .694
N
50 50 50 50 49 50

FWC1-Family demand Pearson Correlation

.089 .006 .085 1 .220 -.005
interfere with job activity
Sig. (2-tailed) .539 .968 .556 .128 .974
N 50 50 50 50 49 50
LI2-Leave as soon as Pearson Correlation
-.102 -.050 -.154 .220 1 -.205
possible
Sig. (2-tailed) .483 .734 .289 .128 .158
N 49 49 49 49 49 49
Third Choice - Reasons Pearson Correlation
for leaving previous .114 -.378(**) -.057 -.005 -.205 1
organizaton
Sig. (2-tailed) .430 .007 .694 .974 .158
N 50 50 50 50 49 50
* Correlation is significant at the 0.05 level (2-tailed).
** Correlation is significant at the 0.01 level (2-tailed).
Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Matital Status 50 1 2 1.42 .499
OE4-Compatiblem with
Organization 50 1 5 3.26 1.275
LI1-leave intended soon 50 1 5 2.64 1.102
FWC5-Family stress
effects job performing 50 1 5 2.78 1.250
ability
Valid N (listwise) 50