LITERATURE REVIEW

ORGANIZATIONAL CULTURE AND EMPLOYEE RETENTION

BY: JOHN D. SHERIDEN

The research of this article investigated whether particular cultural values help or hinder
organizations in retaining their most productive employees. They argued that human resource
managers cannot attempt to manage employee turnover by influencing the termination decisions
of each employee. Instead, the overall termination rate is an organizational number that must be
effectively controlled. Terborg and Lee found that the variation in annual turnover rates across
organizations was related to local labor market conditions and the demographic characteristics of
employees but that organizational climate variables had very weak relationships with turnover
rates. They found that the strength of the inverse relationship between job performance and
turnover varied significantly with the length of the calendar period investigated and labor market
unemployment rates but reported no moderating effects for organizational variables. Peters and
Sheridan also indicated that new employees' job performance was significantly related to their
retention rates. The difference in the retention rates of strong and weak performers varied widely
across organizations, but no human resource management moderating variables were identified.
the variation in employee retention across organizations may be related to organizational culture
values. Suggested that an organization's cultural values influence its human resource strategies,
including selection and placement policies, promotion and development procedures, and reward
systems. Different strategies result in psychological climates that foster varying levels of
commitment and retention among employees working in different organizations. Kerr and
Slocum further suggested that organizational culture values may moderate differences in the
retention rates of strong and weak performers. They reported that some organizations have
cultures that emphasize values of teamwork, security, and respect for individual members.

Will They Stay or Will They Go? Exploring a Customer-Oriented Approach

To Employee Retention
By: Robert L. Cardy • Mark L. Lengnick-Hall

The Employee Equity Model

The employee equity (EE) model is based on the customer equity framework in the marketing
domain. Customer equity is the total discounted lifetime value of a customer, defined as the
"total, across all future periods, of that customer's contribution to profit in each of those periods".
Rather than focus solely on the profitability of products or services, customer equity places
attention on the long-term value of customers. Employees who have strong but short
relationships with an organization may have lower employee lifetime value than employees
who have weaker but longer-term relationships. The EE model suggests that organizations
should view their employees as customers and maximize the value that long-term relationships
with them can provide

Value Equity

Value equity assumes employees make internal calculations regarding the labor they contribute
in exchange for the benefits of working for an organization. Value equity is consistent with
social exchange theory which posits that employees reciprocate the kind of treatment they
receive from an organization as the employment relationship unfolds.

Brand Equity

Brand equity comprises a member's subjective and emotional beliefs regarding an organization.
Organizational branding may also provide incremental preferences for an organization's
desirability as a place to work beyond job and organizational attributes. It involves developing an
emotional tie to a product or service that results in positive feelings and reduces the likelihood of
switching to a competitor. The parallel in an organizational sense is a subjective, internal, and
emotional cognition regarding characteristics that an employee feels signify what his or her firm
stands for.

Retention Equity

Retention Equity revolves around relationships between an employee and the firm and originates
in actions firms and employees take to establish, build, and maintain those relationships. It
describes the tendency of employees to feel connected and intend to stay with an organization,
and is an additive construct, building on the combined contributions that value equity and brand
equity make. Retention equity redirects an organization's employment policies and practices to
focus on building value for individuals rather than simply fulfilling task objectives,
accomplishing bureaucratic goals. Rather than a firm-centered concept that conceives of
employees as means to an end, the EE model reconceptualizes employees as internal customers
who con tribute long-term value extending beyond performance on daily tasks and short-range
objectives.

How to keep your best employees: Developing an effective retention policy

By: Terence R. Mitchell, Brooks C. Holtom, and Thomas W. Lee

Retention cannot be accomplished purely through money. A host of on-the-job and off-the-job
factors must be considered when developing a retention plan. Make strategic decisions; The first
steps in developing a retention plan are largely strategic. Determine whether turnover is a
problem. Determine why people are leaving. Conduct exit interviews. The organization needs to
be willing to devote financial and human resources to the planning, development, execution, and
maintenance of any plan.
Draw on conventional wisdom

Once these strategic parameters are set, organizations should continue to pay close attention to
basic management practices advocated by the traditional turnover literature. Routinely assess job
satisfaction and organizational commitment. Make the gathering and public feedback of these
data part of the organizational culture.

Retaining Talent: Replacing Misconceptions With Evidence-Based Strategies

By David G. Allen, Phillip C. Bryant, and James M. Vardaman

Despite extensive scholarly research and organizational interest in employee turnover, there
remains a gap between science and practice in this area. This article bridges this gap and replaces
several misconceptions about turnover with guidelines for evidence-based retention management
strategies focused on shared understanding of turnover, knowledge of cause-and-effect
relationships, and the ability to adapt this knowledge and apply it to disparate contexts. The
significant resources in retention initiatives without understanding the nature of turnover in a
particular context is unlikely to maximize the return on these investments. Effective evidence-
based management requires integrating multiple sources of data within a particular context .
Designing a strategic, evidence-based approach to addressing turn over requires the ability to
diagnose the extent to which turnover is a problem and adapt an understanding of underlying
retention principles to a particular organizational context.

Practical retention policy for the practical manager

By: Robert P. Steel, Rodger W. Griffeth, and Peter W. Hom

As the retention-policy process moves into the strategy-formulation phase, additional sources of
retention information will be tapped. Strategy development is aided by data on why people quit or stay
and by industry best practices. These data can identify root causes or suggest potential courses of
action. Ultimately, we seek to develop a set of potent strategies that can effectively address, at both the
overall organization level and specific departmental unit level, the organization's turnover-instigating
problems/causes. when employees have an opportunity for autonomy in their jobs, they become
significantly less likely to show various forms of job withdrawal.62 Because the basic idea of a self-
managed team is rooted in notions of employee self-governance, it follow that the recent business
sector popularity of autonomous groups may be having a side benefit: increased employee retention.
 CONCLUSION
From the above study we want to conclude that employyes are the capital of the every
organization So to retain employees organization has to satisfy to employee. By offering many
facilities, event's, incentive, appraisal programs, transparent communication company can retain
employees.

The strategies which Airtel company made for employees those are successful going on and
company is making profit on basis these strategies.
Employees retention not only reduces the attribution rate but also increase the goodwill of a
company in a market. This shows a good culture of the organization.
The study gave a clear picture about the employees and their areas of dissatisfaction, the
outcome of the study will help the organization to spot out the areas of dissatisfaction, there by
the organization can take effective steps to improve the employees satisfaction level towards
their job and to implement various policy implications, most of the employees are satisfied with
their jobs and most of them are satisfied with the policies of the organization and also towards
the other aspects taken in to account for measuring the level of job satisfaction among the
employees in the organization and there are some of the employees who are not satisfied with the
some of the aspects, also some of the suggestions can be taken in to account to make those
employees feel better about their jobs so if the suggestions are taken in to account and done there
is chance for making the unsatisfied employees to change their attitude towards their respective
jobs.
The strategies of Airtel has to use every organization. These strategies are useful for making
profit.
If employees are not satisfied with the job then companies can use these strategies. By using
these strategies employees will be motivated and do the sincere work.
For employees retention these should be good communication between team leader and
employees, timely motivation and feedback makes confident to employee towards the work.
Training programs helps in achieving career goals of employees.
Performance appraisal programs enhance employees salary; employees got incentives and bonus
in this program. These programs should have to be two times in year because some employees
work for these programs.
Weekly meeting should have to be taken. In this meeting team leader individually has to ask
problems to every employee and he has to give suggestions and information to employee.