Human Resources Management Research Paper

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This report shows that the good practice strategies to retain staff collectively used by a sample of small business employers in Disconnected the range of good practice strategies recommended in the literature. The report provides descriptions of those retention strategies and the checklist of over fifty practical strategies set out in section five will be of interest to all employers in small business in the State and beyond.

Purpose: The purpose of this thesis is to describe and analyses the process of selection and retention and how it can affect organizations’ ability to select and retain staff that perform well and are an asset to the organization. Method: Primary information was gathered from a face-to-face interview with he chief of personnel at TESTS, as well as from a follow-up e-mail interview. Secondary information was gathered from books, journals and the web. The research is designed as a case study and the approach to analyzing data is qualitative.

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Conclusion: From the findings the authors conclude that by using selection methods with high predictive validity such as structured interviews, cognitive and personality tests, work samples and assessment centers, while at the same time considering how these methods affect the candidates attitudes and how well they allow for the candidate and employer to exchange views, ales and goals, is the way firms can utilize selection methods in order to find staff that will add value to the organization.

TESTS is using all these methods, except for work samples. Of the others remaining structured interviews is the most common in TESTS. On the perspective of retention, Linsofarkiering Bergsten has developed a performance-based system which takes an essential role on employee motivation, where recognition by offering growth opportunities is most significant in retaining key employees but is also most difficult to be conducted in TESTS as growth opportunities are limited.

Top of Form Bottom of Form The research reveals certain important facts that is there is a school of thought were in the argument is that turnover affects the organizations, and yet there is another school of thought which say that a considerable amount of employee turnover is beneficial for the organization 1 Background to the Business Growth Centre and the researchers British multinational grocery and general merchandise retailer headquartered in Chunter, United Kingdom. 3] It is the third-largest retailer in the world measured by revenues (after Wall-Mart and Careful) and the second-largest measured by profits (after It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia, the Republic of Ireland and The company was founded in 1 91 9 by Jack Cohen as a group of market stalls. The Tests name first appeared in 1924, after Cohen purchased a shipment of tea from T. E.

Stockpile and combined those initials with the first two letters Of his and the first Tests store opened in 1929 in Burnt Oak, Middlesex. His business expanded rapidly, and by 1939 he had over 100 Tests stores across the entry-CLC O] Originally a UK-focused grocery retailer, since the early 1 sass Tests has increasingly diversified geographically and into areas such as the retailing of books, clothing, electronics, furniture, petrol and software; financial services; telecoms and internet services; DVD rental; and music downloads.

Tests is listed on the London Stock Exchange and is a constituent of the FETES 1 00 Index. Before Cellular, Tests was stuck as Auk’s second-ranking supermarket. Today, not only is it the Auk’s largest grocer, it is the world’s most successful Internet supermarket, one of Rupee’s fastest rowing Financial Services company and arguably one of the world’s most successful exponents of CRM.

The Tests Cellular is the most successful CLC currently running in the I-J, used by one third of all I-J households No one would claim that Cellular is exclusively responsible for the success of Tests, but it is clear that the benefits of the Cellular are now written through the Tests business like lettering though a stick of rock. Cited in Humph et al. ) 2. Statement of research aim (Mason, 2003 The aim of this exploratory research is to investigate staff retention strategies employed by small business in Tests. The study directly addresses the following questions: 1 .

What do small business staff want from their employer? 2. What strategies are currently being employed by small business to retain staff? 3. What strategies are small business owner/operators considering in the future to retain staff? 4. If small business staff state ’employer funded training/staff development’ as a strategy to retain staff, how do the staff want it access said training/professional development? 5. What other strategies are small business considering to fill skill shortages (e. G. Business visa, skilled migration etc. )?

Description of research methodology The researchers used a qualitative methodology which enabled them to take into account the small business, industry and community contexts of the small business owners, to identify their individual experiences and to capture the multiple meanings of those experiences (following Crewel 2003, p. 1 8). Their data collection methods included an examination of the literature and relevant government documentation, interviews with a sample of fifteen small business employers from around the State, as listed in the Appendix, and the preparation of a case study, key findings and recommendations.

Key findings The performance Of a small business is largely dependent Of the quality Of the people in the business. Hence, staff retention strategies are therefore critical in small business. Not only do these strategies reduce the direct costs that accrue with the loss of valuable staff, retention strategies also avoid the associated loss in productivity, loss of corporate knowledge and inevitably some disruption to the workplace.

Additionally, staff retention strategies avoid other negatives arising from the loss of staff such as the potential loss of customers, a possible transfer of knowledge to competitors and a tangentially negative impact on an organization’s reputation. Staff retention in small business takes on a particularly critical dimension in Teachers major resource and infrastructure projects are placing high demands on labor and skills -? and exerting significant pressures on other industries.

Scope Of the Study The scope of the study consists of researching one large organization in UK in the financial service industry – Tests. This company was chosen because they use various selection methods and retention techniques so that the authors could study how these methods are used in practice and compare hem to the theory. It was chosen also because of the close proximity of the company’s office to the authors, as their office is located in Vsteer;s close to where the authors live, and the availability of the interviewee to conduct an extended face-to-face interview and eventual follow-up interviews. . 4 Target Audience The possible audience for this thesis would be students who are studying Human Resource Management in Business Administration programmer or other similar programmer, managers who want to learn about how to select and retain valued employees to increase competitive advantage or their companies, and academics who are interested in or intend to research more on this topic. Delimitation This thesis does have limitations.

One of them is that this is a case study on one organization and therefore there will be no comparison made among several companies. Hence the conclusion we come up with will only refer to the company being scrutinized in our case study. The findings will not be general or representative to the industry. However, the findings may be considered in other organizations and inspire them to look into their own selection and retention practices. Another limitation may be that most of our empirical data have been gotten from our primary source.

This may be a drawback since it is one person’s subjective opinion rather than objective, statistical information. However, we feel that the information given to us is still of relevance and importance to our work and we have included many secondary sources as well to balance it up. 6 Disposition In this thesis the authors first describe the method for conducting information search in chapter 2. In chapter 3 we lay our theoretical framework forward, with a general theory on Human Resource

Management first that encompasses both selection and retention, then continuing on to focus on theories and models on selection and retention specifically. We discuss selection and retention methods in that chapter while drawing elements from the theory while discussing them. In chapter 4 we present our empirical findings and from that we have come up with our analysis in chapter 5 where we bind the theoretical models and concepts in with the empirical data from TESTS. In chapter 6 we draw our conclusions and state our recommendations to TESTS.

Chapter 2: Literature review Introduction to the issues To commence this review of the literature on staff retention strategies in small business Goodman, in “Five Challenges Every Small Business Faces” (2006), lists the following challenges which highlight the centrality of the people in any small business: 1. Staffing 2. Leadership & Management Skills – 3. Sales 4. Training- 5. Change Management It is well recognized that the performance of a small business is largely dependent of the quality of the people in the business.

In meeting the five specific challenges listed by Goodman, an enterprise will be dependent on its people. Hence attracting and retaining the right people is fundamental to the success of small business. Staff retention strategies are therefore critical in small business. Not only do they reduce the direct costs that accrue with the loss of valuable staff, retention strategies also avoid the associated loss in productivity, loss of corporate knowledge and inevitably some disruption to the workplace.

Introduction to the literature There is an extensive body of literature addressing issues associated with retention of staff. The literature includes the results of some relatively formal search projects and more commonly, anecdotal observations from a wide range of human resource and management professionals. Australians see employee benefits as an important consideration when joining an organization -? yet only 55% of employers believed that employee benefits programs contribute to the attraction and retention of staff.

A common, and to a certain extent self-evident, observation in the literature is that retention strategies are not ‘one-off’ actions. Nor are they the responsibility Of the ‘HER Department’ alone. Retention strategies need to be embedded in the Meany’s approach to management as a whole. It is important to monitor the turnover of staff in a standardized way in order to avoid allowing problems to develop to a point where they are difficult to manage. And most critically, analyzing the possible causes of a high turnover rate is a first step to undertake before spending money on retention strategies.

Analysis of the factors impacting on retention decisions The introductory sections above reiterate the importance of people to small business, particularly in Tests, and the broad agreement in the literature around the key factors influencing staff retention. The discussion also noted that there is little reference to the relative importance of these factors and how they interact and influence each other. The remaining sections of this literature provide an initial analysis of some of these well-known factors impacting on retention.

The interviews and case studies reported upon in later sections of this report provide insights into how Tectonics small business employers view these factors and their relative importance. Job satisfaction – positive workplace relationships “Employees leave managers, not jobs” (Noble, August 2008) is a consistent hem in the literature and points to the importance of developing the leadership and management skills of managers. “Throughout most organizations, first line managers are responsible for creating the most push factors that can lead to resignation.

Good managers always deliver high retention as a by-product of their work (Noble 2008). ” These management strategies fit well with another key factor linked to positive workplace relationships, job security. Security and stability of employment are highly valued by most employees and employers should provide as much job security as possible. Job satisfaction – recognition and reward: Hatfield (2010) cites the outcome of a survey of 451 HER professionals and 300 managerial employees which found that 53% of employees gave seeking better compensation and benefits as the main reason they would begin searching for a new job.

On the other hand, research on the link between dissatisfaction with pay and turnover appears to be inconclusive. Some commentators (e. G. Noble, August 2008) note the importance of fair and reasonable remuneration in retaining staff. However, Noble also notes that ‘consistent feedback from exit interviews wows that staff do not leave jobs because of money (unless of course they are indeed underpaid and not valued). ” 3. 1 Storey Human Resource Management Model Over the last few decades, the theories on human resource management have developed a great deal.

One way it has developed is from the resource- based theory of the firm developed in corporate strategy literature, which states that sustained competitive advantage comes from the internal resources of a firm. The resources must have four qualities: they must add value, be unique or rare, difficult to imitate and be non-substitutable e. G. By technology. Human capital resources fit these qualities rather well and it embodies intangible assets to a firm (Storey, 1995:4).

Human resource management (HARM) has been defined as “a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques” (Storey, 1995:5). Storey presents an HARM model with 4 dimensions: beliefs and assumptions, strategic qualities, critical role of managers and key levers. The key elements of the model are summarized low (1995:6). 3.

Selection Methods Selection methods are interesting to study because it seems that only a few selection methods are commonly known and used, namely the application letter, C.V., references and unstructured interview. In the literature these forms of selection methods are known as the traditional methods (Arnold & Sylvester, 2005; Several of the alternative methods are discussed below and they have been chosen because they all have relatively high predictive validity and might be of interest to organizations wanting to improve their selection process. . 4 Employee Motivation and Retention Motivation is a topic of interest when we talk about employee retention. It is seen as a major element of any theory that explains and predicts organizational behavior (Cummings & Star, 1997:58). Thus, the authors of the thesis chose four kinds of basic motivation theories with starting from needs theory. Needs theory is a fundamental theory which has been used in many fields. A similar theory, motivator-hygiene theory, develops needs theory in the HER field and focuses more on job itself.

However, needs sometimes mean different for different people. Expectancy theory and equity theory thus implement the above two theories on individual perspective. 3. 4. 1 Needs Theory One of the most significant psychological theories is Mascots “hierarchy of needs” which indicates there are five levels of personal needs, including physiological, security, love, esteem and self- actualization. Only when a low-level demand has been satisfied, a new level of needs emerges and need to be fulfilled (Mason, 1970). Need is what motivates humans..

According to needs theory, since the bottom level needs are probably already fulfilled, employee’s esteem and self-actualization needs play a role in keeping an employee happy at their job. Esteem might be achieved with praise and awards, while self-actualization could be achieved by development and promotions. 3. 4. 3 Expectancy theory However, both of the needs theories and Harassers theory have received criticisms that they are too general to fit individual differences, although they are historically important.

Instead, expectancy theory, which can handle this problem, suggests that “people choose their behavior based on their own perceptions of whether the behavior is likely to lead to valued outcome” (Cummings & star, 1997:82). 1 992: 12). This theory states that employees deed to be recognized and the reward system should be visible in order for their performance to be motivated. It complements needs theory and motivator- hygiene theory that needs needs might not only be different from others but also can be influenced by others. This implies that a company can shape employees attitudes by transferring social norms. . 4. 4 Equity theory Equity theory holds that individuals are motivated not only by measuring the balance between their efforts, performance and rewards but by comparing these with others (Removal, 2004:55). The term others refers to co-workers, rends or people outside his/her organization that are at the same level of position or performance. If employees perceive their rewards, either material or psychological, are less than others, they would feel treated unequally and hence change their attitude to the job, reduce their performance level, or even leave their organization.

It emphasizes that people might modify their needs after comparing with others. Organizations should, at least internally, reward fairly in order to avoid dissatisfaction. 3. 5 Retention Practices The authors have selected HER practices for this study based on HER literature views and on referred motivation theories (Touring, et. Al, 2008; Griffith & Homo, 2001, Burnham, 2001, Cummings & star, 1997). They are: 1) coal setting 2) Compensation and rewards, 3) Culture 4) supervision and 5) Growth opportunities.

The main purpose Of using these approaches is to motivate employees to perform effectively and retain those who add values to organizations. The authors of this thesis track the Mascots hierarchy of needs theory and integrate retention practices with other significant theories. 3. 5. 1 Goal Setting Goal setting is another widely recognized motivation theory. “People select oils that are related to the fulfillment of their needs and aspiration and the seeking of goals is central to the process of living itself” (Locke & Lethal, cited in Cummings & Star, 1997:72).

Goals stated in a job shapes employee’s expectancy and lead them to satisfy their needs of self- actualization. They need to be respected that their skills and talents can fully be use and need senses of success for trying to excess their potential. Thus, as Cummings & Star stated, in order to motivate people, setting goals are better than no goals, difficult goals are better than easy goals, and specific oils are better than general goals (1997:72). These specific task goals are taken from the broader organizational vision.

Growth Opportunities According to hierarchy of needs theory, people develop their need for self- actualization if all of lower levels of needs are satisfied. Motivator-hygiene theory suggests that growth and advancement can generate satisfaction and in turn motivate employees. Studies found that in order to satisfy this level of needs, organizations should support both opportunities for skills development and career development (Removal, 2004; Touring, et al. , 2008; Burnham, 2001). Someone, depending on his/her own expectancy, might just want to have a suitable job instead of being powerful.

Thus, many organizations nowadays are no longer offer traditional career opportunities. Instead of pathways, there are now grids provided for employees, so that upward, lateral, diagonal and even downwards moves can be made Table: Relationship between Motivation Theories and Retention Practices Retention Motivation Theories Goal setting Needs theory: satisfying needs of achievement and self-actualization Expectancy theory: shaping expectancy Compensation and rewards Motivator-hygiene theory: recognition as a motivator

Expectancy theory: shaping expectancy by visible relationship between performance and rewards Equity theory: pay equally Culture Us pervasion Needs theory: satisfying needs of respect and recognition Motivator-hygiene theory: recognition as a motivator Expectancy theory: shaping expectancy by feedback Equity theory: treat equally Growth opportunities Needs theory: satisfying needs of self-actualization and power Motivator- hygiene theory: personal growth as a motivator Equity theory: equal opportunities (Own creation) Conclusion As noted at the beginning of this survey there is a remarkable level of insistence in the literature about the workplace related factors that influence individual retention decisions.

Overall the factors are well summarized by Hall (March 2005) reporting on the results of a major international study involving eight hundred respondents from over 100 firms which documented the following hierarchy of factors: ; quality of relationship with supervisor or manager ; ability to balance work and home life ; clear understanding of the work objectives ; link between pay and individual contributions. There is recognition in the literature that there will be a range of strategies added to address these factors and that the strategies should form part of a managed approach to retention. This approach needs to recognize the individual circumstances of the organization and its employees. Chapter 3 Research methodology 2. 1 Research Design The authors want to obtain an in-depth understanding of the research topic and therefore decided on carrying out a case study as the research approach. With a case study you can get a more holistic account of the subject and it can help you figure out the interrelationships between factors.

With the survey approach you can get more broad and representative overview. So while surveys give you breadth in a study, case studies give you depth. Yin (cited in Fisher, 2007:69) identified some characteristics of a case study, some of which are: This section sets out the research methodology and links it to the literature review. Specifically, the study should address the following questions: ; What does small business staff want from their employer?

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