Essays on Perception or Motivation Case Study

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The paper 'Perception or Motivation' is a wonderful example of a Management Case Study. The need to retain employees in organizations may override any other human resource priority if the firms are to remain competitive. With the exit of a member or members of its critical workforce, a company counts considerable financial and intellectual losses (Ramlall, 2012). It has been approximated that firms incur financial losses twice the pay for the vacant position (Deems, 1998). The costs cover the efficiency and production losses, recruitment and hiring expenses, and related human resource training costs invested in the vacated position (Rader, 2012).

Hinkin and Tracey (2000), for instance, pegged the cost of terminating a salaried staff in the food industry at $ 3000 and that for an hourly employee at half that cost. Loss of a critical staff may also force a firm to incur nonfinancial losses with serious financial implications. The exited firm suffers credibility and gets a public image dent at the expense of the receiving firm. These concerns emphasize the centrality of workforce retention for many a business enterprise. Firms consider both financial and non-financial motivation for workforce retention but not in equal measure. The opinion is sharply divided on the role of monetary and non-monetary motivation on staff retention in firms.

Research evidence shows that both financial and non-financial motivation plays a key role in staff retention (Chhabra, 2008, Struyk, 2008). This paper seeks to clarify the dominant role played by non-cash benefits over the cash-benefits in employee retention. This argument is backed by both theoretical and empirical evidence. This is preceded by a brief discussion of the causes of staff attrition.

The presentation of the theoretical underpinnings of staff retention is followed by discussions on monetary and non-monetary employee retention strategies. In the summary and analysis of the empirical evidence from research and place of motivation in it established. Premises for building effective staff-retention policies are recommended in the last section. Employee retention accrues benefits for both the employer and the employee. It has been defined as a process that encourages the staff of an organization to work for the firm for the maximum duration or to the completion of the contract ( Chhabra, 2008).

Before examining retention strategies, it is important to have an overview of the factors that contribute to high staff welfare. These according to Chhabra (2008) include lack of opportunities for upward mobility, lack of staff appreciation, lack of trust and support, burn out from overwork, unsatisfactory compensation, better job offers, and lack of job satisfaction. Corresponding retentive strategies would, therefore, include staff empowerment, recognition, consultative engagement, negotiated work schedules, expansion potential, and equity. From the aforementioned staff attrition and retention factors, non-financial factors outnumber the financial ones.

This indicates that the staff looks into more than monetary compensation for staying in a firm. A theoretical explanation for such tendencies needs to be explored to put this question into perspective. The section that follows considers the psychological principles which underpin workers' motivation for staying or exiting an organization. Retention of human capital can be motivated by among other reasons, Maslow’ s hierarchy of needs namely physiological, security, affiliation, esteem, and self-actualization (Maslow, 1943). Maslow maintains that these human wants are perpetual and the satisfaction of one tends to lead to another want.

This implies that the human resource think tanks must constantly design packages aimed at meeting the present and emergent needs of its members. In the labor context, some strategies for meeting these needs have been outlined by Champagne and McAfee (1989). The physiological needs can be met by subsidizing cafeteria services whilst safety needs are met economically, psychologically, and physically. These include wages/salaries, fringe benefits, retirement, and medical schemes; explicit job description, praise/awards and solutions to workers’ concerns; and sound working conditions respectively. Affiliation practices encourage the team and interactive working environment.

Delegating challenging tasks, training, consultation, praise, and recognition boost esteem while self-actualization is realized by building human capital for greater opportunities and autonomy. Steers and Porter (1983) warn managers that failure to create a conducive environment that addresses these needs would frustrate the employees and lead to massive labor capital turnover. Other theoretical constructs relevant to the course of employee retention are the need theory which emphasizes the workers’ desire to excel, to be in control, and operate in a friendly interpersonal environment (McClelland, 1961) and the equity theory in which workers are motivated by balancing input and output (Adams, 1965).


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