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Unformatted text preview: ople will attend work with enthusiasm. Turnover
Turnover refers to resignation from an organization, and it can be incredibly expensive. For example, it costs several thousand dollars to replace a nurse or a bank teller
who resigns. As we move up the organizational hierarchy, or into technologically
complex jobs, such costs escalate dramatically. For example, it costs millions of dollars to hire and train a single military fighter pilot. Estimates of turnover costs usually include the price of hiring, training, and developing to proficiency a replacement
employee. Such figures probably underestimate the true costs of turnover, however, Xerox
Levi Strauss & Co.
www.levi.com 120 Individual Behaviour Part Two because they do not include intangible costs, such as work group disruption or the
loss of employees who informally acquire special skills and knowledge over time on
a job. All this would not be so bad if turnover were concentrated among poorer performers. Unfortunately, this is not always the case. In one study, 23 percent of scientists and engineers who left an organization were among the top 10 percent of
What is the relationship between job satisfaction and turnover? Research indicates a moderately strong connection, with less-satisfied workers being more likely
to quit.44 Thus, it is not surprising that Husky has a low turnover rate. However,
the relationship between the attitude (job satisfaction) and the behaviour in question (turnover) is far from perfect. Exhibit 4.7 presents a model of turnover that can
help explain this.45 In the model, circles represent attitudes, ovals represent elements
of the turnover process, and squares denote situational factors. The model shows
that job satisfaction as well as commitment to the organization and various
“shocks” (both discussed below) can contribute to intentions to leave. Research
shows that such intentions are very good predictors of turnover.46 As shown, such
intentions sometimes prompt turnover directly, even impulsively. On the other hand,
reduced satisfaction or commitment can also stimulate a more deliberate evaluation
of the utility of quitting and a careful job search and evaluation of job alternatives.
The following are some reasons why satisfied people sometimes quit their jobs or
satisfied people stay:
■ ■ ■ Job
Satisfaction Certain “shocks,” such as a marital break-up, the birth of a child, or an unsolicited job offer in an attractive location, might stimulate turnover despite satisfaction with the current job.
An employee’s dissatisfaction with his or her specific job might be offset by a
strong commitment to the overall values and mission of the organization.
An employee might be so embedded in the community (due to involvement
with churches, schools, or sports) that he or she is willing to endure a dissatisfying job rather than move. Organizational
Commitment Shocks Turnover
Quitting Exhibit 4.7
A model of employee
Alternatives Turnover Chapter 4 ■ 121 Values, Attitudes, and Work Behaviour A weak job market might result in limited employment alternatives.
Dissatisfaction is most likely to result in turnover when jobs are plentiful.47 For more on this subject see “Research Focus: Job Dissatisfaction Prompts
Turnover Intentions.” Towers Perrin
Gang & Gang
www.gang.net Job Dissatisfaction Prompts Turnover Intentions We often hear, in this era of downsizing and technology, that there is a new work relationship
between employers and employees. According to a
survey conducted by management consultants
Towers Perrin and market researchers Gang & Gang,
however, employees still want traditional and
straightforward outcomes from work.
Unfortunately, the survey reveals that employees
are not getting what they want. In the survey of
1,100 workers and 300 executives, over half the
workers expressed negative emotion about their
work experiences, with one third expressing
intensely negative feelings. The most common and
intense negative points revolved around workload,
management support, boredom, recognition/
rewards, and fears for the future. “They feel there
are barriers in the workplace that prevent them
from doing the kinds of jobs that they want to do,”
said Bruce Near, managing director of Towers Perrin
in Canada. “Part of it is the heavy workload as organizations have downsized. But it goes beyond that.
It’s the sense of lack of control over their environment. It’s arbitrary deadlines. It’s boring work. In
some cases, it’s the interaction that they have with
their immediate supervisors.”
What does this unhappiness mean for employers?
Potentially bad news, according to the Towers
The committed (31%):
Strong positive emotion
and no strong negatives The discontented (43%):
Strong negative emotion
and no strong positives 3% Perrin/Gang & Gang study. The respondents were
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This note was uploaded on 10/01/2010 for the course FGT mba12ehtp taught by Professor Angwi during the Spring '10 term at Télécom Paris.
- Spring '10