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Employee Retention Strategies

The case of a patent firm in Australia

Written by Anonymous

Paper category

Master Thesis

Subject

Business Administration>Human Resources

Year

2011

Abstract

Master Thesis: Expectation theory and employee motivation are different from Maslow’s hierarchy of needs theory. The latter focuses on needs and explains individual actions and behaviors based on the needs that individuals strive to meet. The other theory is called expectation theory, which deals with results (pdfcast .org blog). The theory explains a person's behavior in terms of the result or goal that the person wants to achieve. Then, the individual makes a choice or seeks alternatives to obtain that result. The result should be attractive enough for the individual to start working for it. The goal should also be achievable. Expectation theory connects effort, performance, and results. Employees should believe that the more they give, the better the performance, and the better the performance, the higher the return. The reward must fascinate the person to motivate him to work for it, that is, there should be a positive correlation between the individual's effort in performing the work and the personal ideal result he values. The theory further asserts that the greater the desire for external or internal rewards, the more determined employees are to achieve results. Employees must associate emotional value with results. This emotional value is called valence. If the valence is positive, employees are more willing to achieve results than not. Another variable related to expectation theory is expectation, which refers to the individual's belief that the result can be achieved. Employees can be trained to increase the expectations of the organization, thereby making them more confident in their abilities. The third variable in expectation theory is instrumentality, which is the means or action required to obtain results. In order to be motivated to do the work, the employee must believe that if the result is achieved, the person will be rewarded. In other words, this translates into an employee’s personal achievement, which is a reward, that is, if an employee takes certain steps, he will be able to achieve the result and thus obtain the promised reward. Instrumentality requires the establishment of a relationship between performance and rewards, that is, employees should know what level of performance will bring what rewards. Employees also need to believe in the fairness of the system, that is, the system will accurately determine performance and then reward them accordingly. Expectation theory is sometimes called valence-tool-expectation theory. 2.2.2 Fairness Theory and Employee Motivation Another factor of motivation is fairness theory (Wikipedia), which involves the perception of the fairness of similar contributions to the distribution of benefits to team tasks and personal relationships. Contribution is an individual's investment in effort, and revenue is the result of successful execution of the activity. Most people prefer the results to be commensurate with their input, especially when compared to results obtained with similar input provided by colleagues or other people with whom they have a relationship. Individuals seek justice by distorting the input or result in their own mind or by actually taking action to change the input or result. These physical behaviors may involve quitting their jobs in groups or organizations where they encounter inequality. An experiment (Taylor & Taylor, 2011) confirmed the meaning of motivation in the theory of fairness and expectations, which tried to explain the need for efficiency and wage balance in the public service sector. In their article, they pointed out that Public Service Motivation Theory (PSM) is usually related to wage increases. A variant of this theory mentions the gift exchange model and the labor turnover model, in which wage rates above the market are paid to arouse gratitude and prevent the shift to alternative jobs, respectively. 2.3 Factors Leading to the Resignation and Retention of Employees After discussing job satisfaction and motivation as the main factors of employee resignation, the following subsections will explore other factors that may lead to resignation. There are several basic theories about employee turnover that try to explain this phenomenon. The main findings include job satisfaction as one of the main determinants of employee turnover. However, job satisfaction alone cannot fully explain all the reasons why employees stay at work. Herzberg et al. (1959) developed the two-factor theory, proposing that the factors that keep employees in the post are not the opposite of the factors that make the same employee unemployed. They imply that these factors are different in nature and cannot be used to determine employee turnover and develop employee retention strategies. 2.3.1 Market power The job market and economic conditions of a country also affect a person's decision to stay or leave an organization. Cotton and Tuttle (1986) concluded in their research that under all the same conditions, the better the local economic conditions, the more likely employees are to resign and believe that they can find another job. Blau and Kahn (1981) Read Less