B2002

Human Resource Management

Lecture 4

Motivation, Incentives & Design of Jobs (Unit

8)
Absenteeism & Labour Turnover (Unit 17)

Lecturer: Dr. Stephen Or (Email: stephen.or@elitemass.com)

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Motivation

(Unit 8)

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Motivation VS Work
Motivation
• Definitions of Motivation
– The inner force that drives individuals to accomplish personal &
organizational goals.
– The psychological process that gives behavior a sense of
purpose & direction
– A propensity (tendency) for individuals to behave in a purposive
manner to achieve certain specific, unmet needs. These needs
could be conscious or unconscious
• Definition of Work Motivation
– The psychological forces that determine the direction of a
person’s behavior in an organization, a person’s level of effort, and
a person’s level of persistence (Understanding & Managing
Organizational Behavior, George J. M. and Jones G. R., 1999, 2nd
edition, P.183)
– An employee’s motivation to work consists of all the drives, forces
and influences – conscious or unconscious – that cause the
employee to want to achieve certain aims. Managers need to know
about the factors that create motivation in order to be able to induce
employees to work harder, faster, more efficiently and with greater
enthusiasm.
• In HRM, “work motivation” is often referred to as “motivation”
3 B2002 HRM Lecture 4

3 Elements of Work
Motivation
Element Definition Example
Direction of Which behavior does a Does an engineer take the time & effort to
behavior person choose to perform convince skeptical supervisors of the need to
in an organization? change the design specifications for a new
product to lower production costs?

Level of How hard does a person Does an engineer prepare a report outlining
effort work to perform a chosen problems with the original specifications, or
behavior? does the engineer casually mention the issue
when he or she bumps into a supervisor in the
hall & hope that the supervisor will take the
advice on faith?

Level of When faced with When the supervisor disagrees with the
persistence obstacles, roadblocks, engineer & indicates that a change in
and stone walls, how hard specifications is a waste of time, does the
does a person keep trying engineer persist in trying to get his or her
to perform a chosen strong belief in the need for a change?
behavior successfully?
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Basic Theories of
Motivation
• Content Theories of Motivation
– Theories that focus on why certain goals are more important to some
people than to others
– Seek to determine the individual’s choice of goals and hence why
certain things are more important to some people than others
– Common Content Theories
• Scientific Management (Frederick W. Taylor, 1911)
• Theory X & Theory Y (Douglas. McGregor, 1960)
• Maslow’s Hierarchy of Needs (Abraham H. Maslow, 1954)
• Alderfer’s ERG Theory (Clayton P. Alferfer, 1969)
• Complex Man (Edgar H. Schcin, 1965)
• Herzberg’s Two-factor Theory (Frederick I. Herzberg, 1959)
• Process
ocess Theories
eo es oof Motivation
ot at o
– Theories that seek to explain why individuals behave in a particular way
– Seek to predict individual motivation by identifying the processes that
determine the patterns of behaviour a person will follow when pursuing
desired objectives.
– 2 Common Process Theories
• Expectancy Theory (Victor H. Vroom, 1960s)
• Equity Theory (John Stacy Adams, 1960s)
5 B2002 HRM Lecture 4

The Motivation Equation

Inputs Performance Outcomes

• Effort • Quantity of work • Pay

• Time • Quality of work • Job security
• Education • Level of customer • Benefits
• Experience service • Vacation
• Skills • Job Satisfaction
• Knowledge • Feeling of
• Job
J bbbehaviors
h i accomplishment
li h t
• Pleasure of doing
interesting work
Source: Understanding & Managing Organizational Behavior, George J. M.
and Jones G. R., 1999, 2nd edition, P.189
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 Scientific Management
(Content Theory #1)

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Scientific Management (1)

• Proposed by Frederick W. Taylor in 1911
• Definition of Scientific Management
– A set of principles & practices designed to increase the performance of
individual workers by stressing job simplification & specification
• 3 Major
j Concepts p
– Job Simplification
– Job Specification
– Time & Motion Studies
• Job Simplification
– The breaking up of the work that needs to be performed in an organization into
the smallest identifiable tasks
• Job Specialization
– The assignment of workers to perform small, simple tasks
• Time & Motion Studies
– Studies that reveal exactly how long it takes to perform a task & the best way
to perform it
• Motivator
– Pay (money) is the principal outcome to motivate workers to contribute their
inputs
– In a piece-rate system in which workers are paid a set of amount of money for
performing a number of tasks, pay is often linked closely to performance

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Scientific Management (2)
• Advantages
– Ensures that worker inputs result in acceptable performance levels
– Improve worker effectiveness
– Improve
p p
productivity
y
• Disadvantages
– Workers have the capacity to be intrinsically & extrinsically motivated
– Workers like to have control over their work
– Focus exclusively on extrinsic motivation, ignores the important
role of intrinsic motivation
• Fatigue
• Workers feel that they have lost control over their work behaviors
• Workers feel that they are part of a machine & are treated as
such
• Decreases in quality of work life
• Potential increase in absenteeism
• Potential increase in turnover
• Workers have no opportunity to develop & acquire new skills
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Theory X & Theory Y

(Content Theory #2)

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Theory X & Theory Y (1)
• Proposed by Douglas McGregor in 1960
• Managers develop their views on employee motivations
based on 2 premises:
– Theory X
– Theory Y
• Theory X Managers
– Assume that employees:
• Dislike work
• Are lazy
• Seek to avoid responsibility
• Must be forced to work
– Hence managers should direct & control their employees
– Would limit subordinates’ abilities to exercise discretion
and use incentive schemes and penalties as primary
inducements for increased effort

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Theory X & Theory Y (2)

• Theory Y Managers
– Assume that employees:
• Are creative
• Seek responsibility
• Can exercise self-direction
– Hence managers should
• Delegate authority
• Encourage employees’ participation in decision-
making
• Grant greater job autonomy & task variety
– Seek to motivate their subordinates through
the goals of achievement, self-esteem and
(possibly) the prospect of self-actualisation
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 Maslow’s Hierarchy of
Needs
(Content Theory #3)

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Maslow’s Hierarchy of Needs (1)

Self-
Actualization
Self-Esteem The desire for
The desire for a fulfilling life
Social status and and to fulfill
position one’s potential
The desire for
Security affiliation and
The desire acceptance
Physiological
y g for job security
The desire for
food, shelter,
and clothing

Maslow’s Hierarchy of Needs

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Maslow’s Hierarchy of Needs (2)
Need Level Description
Self- The needs to realize one’s full
actualization potential as a human being
Needs
Esteem Needs The needs to feel good about
oneself & one’s capabilities, to
be respected by others, and to
receive recognition &
appreciation
Belongingness Needs for social interaction,
Needs friendship, affection, and love
Safety Needs Needs for security, stability, and
a safe environment
Physiological Basic needs for things such as
Needs food, water, and shelter that
must be met in order for an
individual to survive
15 B2002 HRM Lecture 4
Example of how needs are met or satisfied in
an organization
By using one’s skills & abilities to the fullest &
striving to achieve all that one can on a job
By receiving promotions at work & being
recognized for accomplishments on the job
By having good relations with coworkers &
supervisor, being a member of a cohesive
work group, and participating in social
functions such as company picnics & holiday
party
By receiving job security, adequate medical
benefits, and safe working conditions
By receiving a minimum level of pay that
enables a worker to buy food & clothing &
have adequate housing
(Understanding & Managing
Organizational Behavior, George J. M. and
Jones G. R., 1999, 2nd edition, P.183)

Maslow’s Hierarchy of
Needs (3)
• Reservation on Maslow’s Hierarchy of Needs
– Not all needs mentioned by Maslow may exist in an
individual
– Not all needs may not exist simultaneously
– Needs are affected by cultures, traditions, social groups,
lifestyles, etc.
– Certain needs may exist in an individual but may NOT exit
in another individual
– In real life, needs may not be ranked in the same
sequence as stated by Maslow
– Needs may y exist sequentially
q y or vertically
yppending
g on the
actual situation
– Needs can be responses to culture & not necessarily of a
physiological nature

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 Alderfer’s Existence
Existence-
Relatedness-Growth (ERG)
Theory
((Content Theory
y #4))

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Alderfer’s ERG Theory (1)

Maslow’s Hierarchy of
Alderfer’s ERG Theory
Needs Theory
Self-
S lf
Actualization
Growth
Esteem

Belongingness Relatedness

Safety
Existence
Physiological

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 Alderfer’s ERG Theory (2)
• Clayton P. Alderfer proposed 3 sets of needs
– Need for Existence (E)
– Need for Relatedness (R)
– Need for Growth (G)
• People sometimes try to satisfy more than one need at a time
• Add a frustration-regression process to Maslow’s hierarchy of
needs
• Frustration regression hypothesis
– Frustration of a higher-level need can lead to efforts to satisfy a
lower-level need
– If a person cannot achieve the next highest level, then the level
below the highest level will assume far greater importance in that
individual’s mind
– E.g. an employee who is not allowed to take significant decisions at
work (“growth”) might concentrate instead of building up good
interpersonal relationships with colleagues (“relatedness”)
19 B2002 HRM Lecture 4
McGraw-Hill/Irwin 9-19 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Alderfer’s ERG Theory (3)

• Implications for motivating followers:
–Leadership practitioners should identify the
d
degree off need
d for
f existence,
i t relatedness,
l t d
and growth for their followers
–Followers having relatively satisfied
existence and relatedness needs are more
apt to focus on growth needs
–Leadership
L d hi practitioners
titi should
h ld bbe on th
the
lookout for the frustration regression
hypothesis among followers

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McGraw-Hill/Irwin 9-20 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

10
 Complex Man
(Content Theory #5)

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Complex Man
• First suggested by Edgar H. Schein in 1965
• Attempted to offer a more realistic alternative
• Underlying assumptions:
– a. no single management style can succeed in improving the
performance of all workers
• different employees respond to any particular management style
(autocratic, democratic, etc.) differently
– b. the motives of any given individual are extremely complex
• Motives change over time
• Motives change with situations – especially those surrounding
his/her job or organisation
– c. experience causes people to acquire new motives
– d. a high level of satisfaction does not necessarily lead to increased
productivity
• individuals are essentially unpredictable & subjective
• each person responds to a unique set of complex motivators
(the ‘phenomenological’ view of human behaviour)
• behaviour cannot be explained through scientific analysis &
observation
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 Herzberg’s Two-factor
Theory
(Content Theory #6)

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Herzberg’s Two-factor
Theory (1)
• Features
– Proposed by Frederick I. Herzberg in 1959
– Focuses on the effects of certain types of job facets on job satisfaction
– Asked professionally qualified employees (engineers and accountants) what
events at work had increased or reduced their satisfaction ((i.e. job
j facets))
– 2 sets of factors affect human behaviours
– Every worker has 2 sets of needs or requirements:
• Motivator Needs (Motivator Factors)
• Hygiene Needs (Hygiene Factors)
• Motivator Needs
– Associated with the actual work itself & how challenging it is
– Provide satisfaction but cannot prevent dissatisfaction
– Motivators encouraged better quality work, hygiene factors did not
– Examples:
• Interesting
I t ti jobs
j b
• Autonomy on the job
• Responsibility
• Sense of achievement on completing work;
• Recognition from others within the organisation;
• Prospects for promotion

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Herzberg’s Two-factor
Theory (2)
• Hygiene Needs (Hygiene Factors) (Maintenance Factors)
– From the analogy that hygiene does not improve health, but
does prevent illness
– Associated with the physical & psychological context in which
the work is performed
– relate to the conditions of work rather than the work itself, thus
an improvement in a hygiene factor will not be noticed for very
long.
– Prevent dissatisfaction but cannot provide satisfaction
– Examples:
• Physical working conditions (e.g. temperature, pleasantness
of the surroundings)
• Nature of supervision
• Pay
• Job security
• Personal relations with colleagues
25 • Fringe benefits B2002 HRM Lecture 4

Herzberg’s Two-factor
Theory (3)
Dissatisfaction-Satisfaction Dimension
Dissatisfaction Satisfaction
with job with job
(A) According to the traditional view, a worker is either
satisfied or dissatisfied with his or her job.

No Satisfaction
Satisfaction Dimension Satisfaction
with job
with job
(Motivator needs
(Motivator needs met)
not met)
Dissatisfaction Dimension No dissatisfaction
Dissatisfaction
with job
with job
(Hygiene needs
(Hygiene needs (B) According to Herzberg, a worker can be both satisfied met)
not met) & dissatisfied with his or her job at the same time.
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Herzberg’s Two-factor
Theory (4)
• Needs & Job Satisfaction
– When motivator needs are met, workers will be satisfied
– When motivator needs are NOT met, workers will NOT
be satisfied
– When hygiene needs are met, workers will NOT be
dissatisfied
– When hygiene needs are NOT met, workers will be
dissatisfied
• A worker can experience job satisfaction & job
dissatisfaction at the same time
• Satisfaction & dissatisfaction are 2 separate dimensions
– Satisfaction Dimension
• Ranged from satisfaction to no satisfaction
– Dissatisfaction Dimension
• Ranged from dissatisfaction to no dissatisfaction
27 B2002 HRM Lecture 4

Herzberg’s Two-factor
Theory (5)
• Debate on Herzberg’s Two-factor Theory
– Lack of research support
– Working conditions are mostly outside the control of the workers
– People tend to take credit for the good things that happen to them
– People tend to blame others or outside forces for bad things
– Herzberg was concerned with the attitudes toward work of qualified
professional & managerial staff, and not with shop-floor workers who
might be much more concerned with prospects of immediate financial
reward
– Managers themselves respond to different factors in different ways
– Pay & fringe benefits were classified as hygiene factors instead of
motivating factors
• Implications
– Management should seek to ‘enrich’ the work of their employees so as
to maximise the incidence of motivators in each person’s job
– This involves:
• (i) restructuring work in order to increase its interest and variety; and
• (ii) extending the individual employee’s control over his or her work
situation.
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 Expectancy Theory
(Process Theory #1)

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Expectancy Theory (1) -

Model
In order for workers to be motivated to perform desired behaviors at a high
level…
Expectancy Instrumentality Valence

Expectancy must Instrumentality Valence must be

be high. Workers must be high. high. Workers
must perceive that Workers must must desire or
if they try hard, perceive that if want the
they can perform they perform at a outcomes they
at a high level. high level, they will receive if
will receive they perform at a
certain outcomes. high level.

Effort Performance Outcome

Source: Understanding & Managing Organizational Behavior, George J. M. and
Jones G. R., 1999, 2nd edition, P.200
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Expectancy Theory (2) -
Formula
• Motivation = Expectancy (E) x
Instrumentality (I) x
Valence (V)

Strongest motivation = Highest E x

Highest I x
Hi h t V
Highest

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Expectancy Theory (3) -

Implications
• Managerial Implications of Expectancy Theory
– Do the employees see/perceive any link
between their effort and their performance?
p
(effort-performance link)
– Do the employees see/perceive any link
between their performance and received
outcome? (performance-outcome link)
– Do the employees value their received
outcomes as important? (valence)
• Since individuals possess different references
for outcomes and different perceptions of the
relation between effort and reward, they will be
motivated in different ways
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Expectancy Theory (4)
- Porter & Lawler
• Lyman W. Porter & Edward E. Lawler try to explain the nature of
the relationship between performance & effort
• They hypothesise that two factors determine how much effort
an employee puts into his/her work:
– 1. Extent to which the rewards from an activity are likely to
satisfy the individual’s needs for security, esteem,
independence, and personal self-development
– 2. The individual’s expectation that effort will lead to such
rewards
• The higher the probability that the reward depends on the
exertion of effort, the greater the effort the individual will
devote to an activity
• The efficiency of a person’s
person s effort depends on:
– (i) his/her ability (skills, intelligence, etc.)
– (ii) that person’s interpretation of his/her role in the
organisation
• Individuals place different values on expected rewards

33 B2002 HRM Lecture 4

Expectancy Theory (5)

- Problems
• Individuals may not recognise the importance of certain
aspects of performance which significantly contribute to
attaining desired objectives
– For
F example, l effective
ff ti salespeople
l l require
i good d
communications ability, including verbal
communication skills
– A salesperson who fails to see the crucial importance
of verbal communication in selling will not bother to
improve it
• Experience suggests that people may NOT be always
logical and rational
• There are many other variables/factors that affect
motivation
• The theory cannot be tested empirically
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 Adam’s Equity Theory
(Process Theory #2)

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Features of Equity
Theory
• Proposed by John Stacy Adams in 1960s
• Employees' own assessments of whether they are being
fairly treated is a major factor influencing motivation
• Individuals regularly compare (perhaps unconsciously)
the returns they are experiencing with the rewards given
to other employees – relative to the effort they contribute
to their jobs
• People strive to maintain ratios of their own outcomes
(O) to their own inputs (I) that are equal to the
outcome/input ratios of others (referents) with whom
they compare themselves
• People strive for fairness & justice in social exchanges
• Cognitive perception of fairness or lack of it affects
behavior

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Referent, Outcomes,
and Inputs
• Referents
– Person similar to you
– Person outside the organization but comparable to you
– Coworkers (peers)
• Outcomes (The rewards employees receive from their jobs)
– Salary
– Recognition
– Increase pay
– Improve working conditions
– Everything you get from the job
• Inputs
p ((People’s
p contributions to their jjobs))
– Work experience
– Education/qualification
– Time of work
– Working conditions offered in the job
– Everything you put into the job
37 B2002 HRM Lecture 4

3 Situations of Equity
Theory

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Reactions to Inequity
• Change I & O of self
• Change I & O of referent
• Change the perception on I & O of self
&/or referent
• Change the referent
• Quit the organization
• Force the referent to leave the
organization
( I = Inputs, O = Outputs)
39 B2002 HRM Lecture 4

Problems of Equity
Theory
• Perception of equity is subjective & thus
is extremely difficult to measure
• Input to & output from a job may be
inaccurately identified by workers
• Many other factors (e.g. group pressure,
group influence, etc.) may affect a
person’s
person s motivation

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 Job Satisfaction

41 B2002 HRM Lecture 4

Job Satisfaction -
Definition
• Definition
– The degree to which employees have positive attitudes towards their
job
– the extent to which employees favourably perceive their work. High job
satisfaction indicates a strong correlation between an employee’s
employee s
expectations of the rewards accruing from a job and what the job can
actually provide.
• Employees with HIGH Job Satisfaction
– There is a strong correlation between an employee’s expectations of the
rewards accruing from a job & what the job can actually provide
– Doing well in their job
– Getting well paid
– Enjoying what they are doing
– Tend to be co-operative
p
– Well-motivated
• Employees with LOW Job Satisfaction
– Tend to produce low quality work
– Go on strike
– Absent more often
– Invoke grievance procedures
42 – May leave the organization
B2002 HRM Lecture 4

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Importance of High Job
Satisfaction
• Dissatisfied employees skip work more often & are
more likely to resign
• Satisfied employees have better health & live longer
• Job satisfaction carries over to the employee’s life
outside the job
• Satisfied employees have lower rates of turnover &
absenteeism
• A satisfied work force may be justifiable because:
– it would
o ld red
reduce
ce medical costs and the premat
premature
re loss of
valued employees by way of heart disease or strokes
• Satisfied employees contribute toward being
satisfied citizens
43 B2002 HRM Lecture 4

Determinants of Job
Satisfaction Personality
The enduring ways a
person has of feeling,
thinking, and
behaving
Work Situation Values
• The work itself • Intrinsic work
Job Satisfaction
• Coworkers, values
The collection of
supervisors, and • Extrinsic work
feelings, beliefs, and
subordinates values
thoughts about how
• Physical working
to behave with
conditions
respect to one’s
• Working hours,
current job
pay, and job
security
Social Influence
Source: Understanding &
• Coworkers Managing Organizational
• Groups Behavior, George J. M. and Jones
G. R., 1999, 2nd edition, P.78
• Culture
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Job Satisfaction Survey
• Management may conduct a survey among its employees to
ascertain their feelings towards their jobs
• Purposes:
– To identify the sources of low morale
– To distinguish differences in satisfaction among various grades of staff
& employee groups
– To improve communication between management & worker
– To give employees the opportunity to express views
– To assess the impact of organisational policies on employees
• Surveys may be conducted using questionnaires and/or
interviews
• Questions may follow a checklist
• Open-ended
Open ended questions
– Require employees to describe their views without direction or
constraint
– Time consuming
– Difficult to administer
– Replies received cannot easily be analysed statistically

45 B2002 HRM Lecture 4

Absenteeism

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Absenteeism (1) -
Definition
• Definition
– A situation whereby is NOT at work without official leave or
good reason
– Absenteeism is measured in terms of frequency
q y rate
• Frequency Rate of Absenteeism
– The total number of separate absences/average strength of the
work force
• Separate Absence
– An absence of more than one hour’s duration. (Different
organizations may have different definitions of separate absence.)
Motivation to Attend Work is Ability to Attend Work is
Aff t d By
Affected B Aff t d by
Affected b
Job satisfaction Illness & accident
Organization’s absence policy Transportation problems

Other factors Family responsibilities

47 B2002 HRM Lecture 4

Absenteeism (2) – Factors

Affecting
• Personal Factors
– controllable to a certain extent through the organisation’s selection policy
– Examples:
• Age
• Sex
• length of journeys to and from work
• length of service
• family responsibilities
• Organisational Factors
– very much under the direct control of local management
– Examples:
• heaviness or unpleasantness of jobs
• stress involved
• shift working
g
• amount of overtime
• Income levels
• employee morale
• External Factors
– largely outside the control of individual organisations
– Example: local levels of unemployment

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Absenteeism (3) -
Responsibility
• Responsibility of Control of Absenteeism
– Supervisor
– HR Department
p ((formulation of p
policy
y on
absenteeism)
– Top management (delegation of power to the
suitable personnel to handle cases of absenteeism)
• Cost of Absenteeism
– idle machines
– reorganisation of production
– reduced
d d output
t t
– increased costs
– extra strain upon those employees who do turn up for work
– changes in HR policies

49 B2002 HRM Lecture 4

Absenteeism (4) –
Areas For Attention
• 3 areas need attention:
– Examination of trends
• Find out which group of employees tends to cause the
absenteeism problem
• Are there particular work groups, personal characteristics or
departments where the problem is most acute?
– Administrative change
• management can redesign disciplinary procedures, offer
bonuses or incentives based on attendance records, review
recording procedures on absenteeism
• Management can also change managerial attitudes
– Working environment
• New control procedures only have a limited effect, they need
to be supplemented by motivating factors such as flexible
working hours, improved working conditions and greater
involvement of the work group in their tasks
• job enlargement & job enrichment can help solving the
problem of absenteeism
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Absenteeism (5) –
Signs & Measures
• Signs of Employees having High Absenteeism
– Very unhappy
– Suffer from poor motivation
– Tend not to come to work
• Absenteeism
– Can never be eliminated, but
– can be controlled & managed
• Measures to Tackle Absenteeism
– Review the job design
– Improve working conditions
– Review compensation
– Counseling
– Terminate problem employees
– Set up joint absentee committee (to investigate all cases of
seemingly unjustified absence)
– Reward workers with good attendance records
– Improve job satisfaction by various means
51 B2002 HRM Lecture 4

Labor Turnover

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Discussion – Turnover

• “All employers expect to have a certain degree of

labour turnover.” – Director Human Capital
S i
Services off Cladmill
Cl d ill Associates,
A i t a leading
l di
personnel consultancy firm in Leeds, UK.
Discuss with elaboration five ways in which an
employer can reduce his or her labour turnover
rate. [25]

53 B2002 HRM Lecture 4

Definition & Symptoms

• Definition
– The permanent withdrawal of a worker from the
employing organization (Understanding & Managing
Organizational Behavior
Behavior, George JJ. M
M. and Jones G
G.
R., 1999, 2nd edition, P.91)
– Usually convenient to measure it by recording
movements out of the firm on the assumption that a
leaver is eventually replaced by a new employee
• Symptoms of Labor Turnover
– Low morale
– Signs of high absenteeism
– Low productivity
– Apathy (lack of interest, enthusiasm or
concern; indifference)
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Measurement of Turnover
• 2 formulae for measuring labour turnover:
– Separation/Wastage Rate:

• Labour Stability Index:

55 B2002 HRM Lecture 4

The Turnover Process

W. H. Mobley’s Model of the Turnover Process:
Evaluation of
Job dissatisfaction Thinking of
benefits & costs of
experienced quitting
q
quitting
g

Evaluation of Search for Intention to search

alternatives alternatives for alternatives

Comparison of
Intention to
alternatives to Quit/stay
quit/stay
present job
Source: Understanding & Managing Organizational Behavior, George J. M. and
Jones G. R., 1999, 2nd edition, P.92
56 B2002 HRM Lecture 4

28
Cost of High Labor
Turnover
• 1. Lower production during learning period.
• 2. Lost production while employee is being replaced, production
usually suffers.
• 3. Payment
y to other employees
p y while waiting
g for replacement.
p This
often involves paying overtime, thus incurring additional costs
• 4. Skilled employees may be asked to stand in, thus diverting them
from their usual job. This could affect the current production or the
standard of service.
• 5. May have to use sub-contractors or outside agencies to fill in the
gap. This arrangement is usually expensive.
• 6. Scrap and spoilt work may increase when the new replacement
staff is learning the job.
• 7.
7 Cost
C t off finding
fi di replacements.
l t Costs
C t here
h refer
f tot time
ti spentt as
well as costs to advertise, head-hunt, interview, check referenc, and
to conduct medical checks.
• 8. Training cost.
• 9. Administrative costs of removing from and adding to payroll.

57 B2002 HRM Lecture 4

Approaches to Tackle
Labor Turnover (1)
• 1. To ensure that selection procedures are robust (healthy &
strong)
– Employees who would stay longer
• Suitable employees
p y
• Properly & well-selected staff
• 2. To ensure that immediate supervisor is involved in
selection process
– Supervisors who are involved in the selection process tend
to be more responsible to their new employees
– Well-trained staff know their job better & are less likely to
leave the firm
• 3.
3 TTo check
h k ththatt employees
l are being
b i fully
f ll utilized
tili d
– Give employees sufficient control of their jobs
– Promote variety
– Give employees chance to complete a job from the
beginning to the end
– Provide interesting & meaningful job
58 B2002 HRM Lecture 4

29
Approaches to Tackle
Labor Turnover (2)
• 4. To review the pay structure (may use job evaluation)
– If the pay structure is fair & equitable, turnover would be lower
• 5. To introduce or improve the orientation process
– Employees
p y who are well oriented tend to:
• understand the firm & their work more
• Become more effective
• Be successful & proud of their work
• 6. Give appropriate training to new employees
– Well-trained employees:
• make less mistakes
• Proud of their success
• 7.7 Sh
Show employees
l good d prospects
t off th
the company
– Promote people internally
• 8. Improve & provide pleasant work conditions to employees
*** In general, an increase in job satisfaction & in the
cohesiveness of working groups will decrease the rate of
labour turnover.
59 B2002 HRM Lecture 4

English – Chinese
Glossary
English Chinese English Chinese

Contingent Workers 替代/自由 Internship 實習生職位

員工
Employee Referral 員工推薦 Interview 面談/面試
Job Bidding 職位邀請 Recruitment 招聘

Job Fairs 招聘會 Selection 選拔

Job Posting 職位發表/ Turnover Rate 流失比率

宣告
60 B2002 HRM Lecture 4

30