Impact of Workplace Environment on Employee Turnover Intention

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					          B8204 HRM:
Looking Toward the Future and HRM


     Thursday April 6, 2006
               Agenda
• Looking Toward the Future and HRM

• CEQs
 Understanding the Role of HRM
         in the Future
• Research tends to be focused on large
  organizations, with standard employees,
  operating within one county, using traditional
  methods of HRM
• Today‟s world of work can be very different
  –   Small businesses
  –   Non-standard work and employees
  –   Operating in global environments
  –   High performance work systems
   Non-Standard Work Defined
• No explicit or implicit contract for long-term
  employment and one in which the minimum
  hours can vary in a non-systematic manner
• Duration of the employment relationship is
  dependent on the needs of the client
  organization or employer, and is recognized as
  finite
• Temporary workers may be with an
  organization for a relatively long time
           Why Important?
• Contingent work has become increasingly
  common in Canada and around the world, and
  this trend is likely to continue
• Contingent workers tend to be managed
  poorly, and have negative work experiences
• Managers, employees and researchers need to
  consider how existing theories apply to
  contingent workers
      Growth in Contingent Work
• 5% of employed individuals were contingent
  workers in 1991
• Now, the proportion is closer to 10%, and growing
• Why?
  –   Numerical flexibility
  –   Functional flexibility
  –   Cost containment
  –   Protect permanent workers
  –   Control
  –   Selective hiring
       Types of Contingent Work
• Job Sharing
   – Women with children at home, likely to have university degrees
• Independent contractors & self-employed
   – Autonomous, set hours (self-employed consultants, etc.)
• Tele-workers
• Temporary Employment
   – Evolving from short-term assignments (office support, manual
     unskilled laborers) to broad range of technical, professional services
       • Direct-hire temporary workers
           – Non-autonomous, work for single organization (Seasonal workers, supply
             teachers, etc.)
       • Intermediated temporary workers
           – Workers who are placed at client organizations but who are employees of an
             intermediary (Manpower, Kelly Services, Accountemps, CoTalCo etc.)
A Triangular Employment
      Relationship
Temporary                       Client
(provider)                   Organization
   Firm




             Intermediated
               Temporary
                 Worker
                      Experiences
•   Employment insecurity
•   More “accidents” (Kochan et al., 1994; Collinson, 1999)
•   Less control over job activities than permanent employees
•   Worse health outcomes than permanent employees
•   Lower pay, fewer benefits, even controlling for demographics
•   Boring or repetitive tasks
•   Organizational injustice
•   Very little guidance or leadership

• Depends on type of contingent work: e.g., for independent
  contractors, rate of pay is often higher than for permanent employees,
  and tend to have more interesting and challenging work
• Also, LARGELY affected by volition (voluntariness vs.
  involuntariness)
 Perceptions of Organizations
• Assumptions:
   –   Disloyal, self-interested
   –   Impression management
   –   Unmotivated
   –   Unskilled

• Realities
   – Self-fulfilling prophecies
   – Perceived organizational support predicts turnover intention
   – Contingent workers who perceive high levels of justice will
     engage in more citizenship behaviors than permanent
     employees with similar perceptions, and are more committed
    Organizational Strategies to
  Integrate Contingent Employees
• Ghettoization
  – Pay differentials (higher or lower)
  – Status differentials (e.g., security badges,
    equipment, access to corporate facilities, etc.)
• Assimilation
  – Contingent workers are treated like other employees
• May be differences between corporate policy
  and actual treatment by other workers
       Implications for HRM
• Contingent work has become increasingly
  common in Canada and around the world,
  and this trend is likely to continue
• Contingent workers tend to be managed
  poorly, and have negative work
  experiences
• Managers, employees and researchers
  need to consider how existing theories
  apply to contingent workers.
     Trend Toward Globalization
• The environment in which organizations operate is rapidly
  becoming globalized
   – New markets and new customers
   – Lower labour costs
   – Trade agreements
• Demands of HRM increase and change:
   – Align HRM process and functions with global requirements
   – Adopt a global mindset
   – Become a business partner in acting on global business
     opportunities
         HR in a Global Economy
• HR Planning is involved in:
   – Decisions about the level of participation in a global
      economy
        • e.g. international, multinational, global
   – Where and how many employees are needed for each
      international facility
• Need to consider unique issues when selecting employees
  for international assignments:
   – Flexibility and tolerance for ambiguity, Sensitivity to
      cultural differences, Motivation to succeed, Enjoyment
      of challenges, Support from family members
      HR in a Global Economy

• Some special challenges arise with regard to
  training and development such as:
   – Training and development programs should be
      effective for participating employees regardless
      of their background
   – Employers need to provide the employees with
      training in how to handle challenges associated
      with working in a foreign country
       Cross-Cultural Preparation
• Cross-cultural preparation is
  training to prepare employees
  and their families for an
  international assignment
  including:
   – Departure preparation
   – Assignment preparation
   – Return home preparation
    Performance Management
    Across National Boundaries
• General principles of performance management
  apply but specific methods that work in one country
  may not in another
• Differences relate to:
   – Which behaviours are rated
   – How and the extent to which performance is
     measured
   – Who performs the rating
   – How feedback is provided
Human Resource Management in a
     World with Terrorism
  How might the experience of the September
  11 attacks and the U.S. war on terrorism affect
  recruiting, training, and compensating
  employees?

  What other local, national or global issues
  might have an impact on HRM?
  High-Performance Work Systems
• Traditional management practices
   – Isolated decisions about technology, organizational
     structure, and human resources
• High-performance work systems
   – Growing realization that human resources are better
     managed by high-commitment oriented strategies
   – Empowering employees through increased information
     flows and devolution of decision making power
   – Emphasize competitive advantage through human
     resource practices
 Conditions for High-Performance
                        Teamwork &
                        Involvement
        Ethics                             Knowledge
                                            Sharing


Employee           Conditions for           Satisfaction &
Discipline       High-Performance           Engagement


             System                   Managing
             Fairness                 Turnover


                                                             .
        HRM‟s Contribution

               Job Design

HRM‟s          Reinforcement & Selection
Contribution
To High        Training & Development
Performance
               Performance Management

               Total Rewards
           Major Topics for Exam
1.   Present and Emerging      8. Absenteeism and Turnover
     HRM Challenges; Strategic 9. Performance Management
     Importance of HRM         10. Training and Education
2.   Understanding the Legal 11. Employee Development
     Environment
3.   Organizational Fairness, 12. Managing Compensation &
                                   Rewards
     Commitment and Trust
4.   Managing Workplace        13. Workplace Health & Safety
     Diversity
5.   Hiring and Recruiting
6.   Separations, Downsizing
     and Outplacement
                             Exam
•   35% of final grade in the course; 3 questions
•   Each question is weighted equally
•   No choice on comprehensive question, a choice
    from 2 for both theoretical and applied question

    – Comprehensive
      •   Integration of topics in the course
      •   Will ask you to focus on a few (around 3) areas
      •   Will get at present and Emerging HRM Challenges; Strategic
          Importance of HRM in organizations
                     Exam
• Theoretical
  – Demonstration that you understand HRM
    theory, both in terms of being able to describe
    and explain it, and extending it
• Applied
  – Demonstration that you are able to apply HRM
    practices to „real‟/hypothetical situations in
    organizations
                               Exam
• Both questions will be focused on a major topic area (you won‟t
  be asked specifically about the legal implications in any
  question, although it may be helpful to have a general idea
  about legal implications of various HRM decisions, practices,
  and policies).
   –   Organizational Fairness, Commitment and Trust
   –   Workplace Diversity
   –   Hiring and Recruiting
   –   Separations, Downsizing and Outplacement
   –   Absenteeism and Turnover
   –   Performance Management
   –   Training and Education
   –   Employee Development
   –   Managing Compensation & Rewards
   –   Workplace Health & Safety
         Thanks…

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