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Job tenure - a micro variable for an effective organization

by K.G. Chandrasiri

Every organization irrespective of its size and the kind of business they are engaged has a core factor for their success. That is the growth of their business. Business of an organization, it is said, cannot be made a definite success only by utilizing set of systems and resources it possesses. Business of an organization is a challengeable activity because its success mainly depends either on belief or judgement of probabilities but cannot be achieved on certainties. That phenomenon is logical as behaviourial process of external objects, with which an organization has to interact, is unpredictable. Therefore it is an impossible task to pre-program and design ways in which an organization should re-act with the behavioural patterns of external organizations, even with the assistance of High Tech-Computer Systems. Moreover the degree of accuracy is doubtful on forecasts made regarding behavioural patterns of live organisms.

In the above context the potential force an organization has to deploy is its human skills to overcome the impact of adverse situations or to thrive on opportunities. It is also an accepted fact that man and his capability to adjust for un-foreseen situations is a subtle built-in process and as such human mental circuit is beyond an easy comprehension. Therefore organizations have hardly any alternative to their human brains, to prepare plans and accomplish the indented end results.

In other words humans are the only force, which can integrate internal systems of an organization to make a fit with constantly changing external environment to establish a sustainable business. This had appropriately been cited by Rensis Likert (1967), when he wrote that success of any organization depends not on its office automation systems but solely on the activities of their human force. The emphasis should therefore be focused as to how should the people of an organization be clung to its body for effectiveness of its endeavours. If put it differently, it is important as a corporate way of an organization to encourage optimal job - tenure or length of time on the job among its core employees for better productivity.

Growth

As pointed out above, people of an organization or technically termed employees, are very vital for its survival and growth. There will be no organizations if there are no people to man them. It is because of this factor that search for right kind of employees has become prevalent feature in the labour market. In the meantime it has been noted that some organizations make hard efforts to select people for their jobs within a short spells of time.

Employment opportunities are advertised frequently by such organizations for specific jobs and in certain instances they advertise some jobs even twice a year. It notices a difficulty of retaining right kind of employees for a required job. Perhaps the right kind of people would have strolled out from their jobs due to lack of interest or to accept better offers. If that type of situation recur in an organization, it would face the risk of loosing capable employees and in turn it would result in to bring diminishing returns from the organizational inputs.

This would, no doubt, be a dysfunctional development and hamper organizational success in the long run. Hence Peter Ducker was right when he stated (1992) that every organization has to compete for its most essential resource: qualified, knowledgeable people.

So without exception it is very important for an organization to identify early the symptoms of "Exit behaviour" of its efficient employees as an organization cannot afford to define such losses simply as "an employee exit" or technically as "Employee Turnover" without taking remedial steps to overcome it, for its roots are deeper driven than one considers them to be.

Analysis of employee turnover behaviour

Industrial psychologists have diagnosed several causes, which lead to develop exit behaviour within employees. Two major perceptions that could be identified based on the analysis done by them are

i) Job-related perception

ii) Labour - market perception

Job-related perceptions are originated from the characteristics of both the job itself and the organizations. Every organization, as it was stated earlier, has its own systems to monitor and assess the levels of performance and output.

Those systems create the internal work environment for employees because organizational jobs and the culture are designed to suit those systems. Some of their familiar features are goals & values, policies, practices, job contents, supervision, work groups, work environment and importantly rewards. Employees take them as yardsticks to measure levels of their satisfaction and expectation achievable from the organization and create individual feelings and attitudes, to decide whether it is an excellent enterprise to serve. Labour-market generally consists of employments, vacancy rates, advertising levels, communication and recruiting methods.

Those factors create labour market perceptions of the employees. They open or widen the path of new expectations regarding the alternative job availability.

Job related and Labour related perceptions would encourage an employee to balance the rate of utility between his current jobs and available alternatives. If his assessment shifts towards an expectancy to obtain an alternative job, his utility to keep current job becomes decreased. Finally such an employee would tend to search for new alternatives and develop a "Turnover behaviour" with an idea to accept a better offer.

Biopsy on employee turnover

It is advantages to have appropriate understanding on employee turnover as it supports managers to prepare suitable strategies to overcome it. Further, proper diagnosis and prevention of core employee turnover behaviour have become a hands on challenge for managers/ employers since competition for better employees has opened more avenues for them to move out of their organizations. The stock answer given for employee exit is simply to say that it occurs, when employees are dissatisfied with their current jobs. However this subject has been critically addressed by scholars and they attribute several reasons relating to employees' dissatisfaction and formation of exit decisions in their minds. Armstrong (1997) has classified some of them under such headings as:

* More pay and security

* Better prospects & career development

* Dissatisfaction with pay

* Career progress

* Dissatisfaction of working conditions

* Poor managerial relationship

* Poor relationship with fellow workers

* Feeling insecurity and

* Stress

Similarly if employees are satisfied with their current jobs they would cultivate a willingness to remain with their present employer. As pointed out by behavioural scientists, employee satisfaction would depend on measures such as:

* Belief that promotion, job evaluation, procedures and rewards are arranged on fair basis.

* Degree of satisfaction emanating from financial & none-financial rewards

* Level of participation in decision-making that affect employees

* Level of communication

* Opportunities available for training and development

* Degree of utilizing skills and abilities

* Clarity of the job to be performed

* Support and guidance from the superiors

* Work environment

* Management style of the organization

When the two sets of variables given above related to job satisfaction and exit decisions are analysed, they seem analogous in spirit and help to understand the roots of employee turnover behaviour. Moreover they implicitly reflect the symptom of employee turnover behaviour as a manifestation of delicate psychological and social issues of employees attached to a particular organization. A comprehensive analysis of those variables would also support to relate elements of employee turnover behaviour with the findings of "Needs Theories" represented by Marslow (1954) and HerzBerg (1966) on employees and actualization of their needs for motivation towards better performance.

The observations given above indicate that unless human needs are given an effective response, it would lead to frustration and non-corporation. Experiments show that human nature is basically to agitate for the fulfilment of individual needs of either descriptions i.e. physical or mental. Nigal Nicholson, Professor of Organization Behaviour of London Business School stated in 1998 that -

"Homo sapiens emerged on the Savannah Plain some 200,000 years ago, yet according to evolutionary psychology, people today still seek those traits that made survival possible then: and instinct to fight furiously when threatened, for instance, and a drive to trade information and share secrets. Human beings are, in other words, hardwired. You can take the person out of the Stone Age, evolutionary psychologists contend, but you can't take the Stone Age out of the person."

The above position is valid even to the employees of a modern organization. Recent experiences explicitly show that employees tend to confront and even agitate when their needs are threatened and then take the information and secrets they receive to arrive at their own decision in the organizational context. Once the decision is made, they may opt to withdraw from the organization if developments therein are not compatible or considered to be acrimonious.

A comprehensive strategy is therefore necessary to determine and resolve the problem of core employee turnover. Such strategies should be designed to cater average employees who possess different psychological, economic and social standards.

Significance of optimal job tenure

Retention of core-employees as discussed so far denotes that it is a difficult exercise rather than just a "Knee Jerk" reaction. It is an issue that need to be carefully thought out and comprehensively addressed. Fredrick Richheld wrote in his book "The Loyalty Effect" and stated that -

"Retaining employee is as critical as retaining customers because you won't have loyal customers without loyal employees."

What he attempts to say is that retaining the confidence of both their customers and employees together is very important for an organizational success.

Phillip J. Sharky, one time senior vice president of Human Resources Management for American Bankers Insurance Group contended that -

"We try to adjust as best we can to the individual needs of our employees as a massive group. People have needs and wants that have to be addressed of on individual basis."

In light of the importance of uninterrupted availability of core-employees, it is essential to prepare a strategy to ensure optimal level of their "Job Tenure". Employees would not generally be satisfied only with the duties and wages assigned to jobs in the cycles of their work life. They admire non financial rewards such as Training and Development programmes, Evaluation systems, Successions Plans, Innovative Compensation Packages, Communication/ Dialogue System, Participation programmes, Health care services, Quality Work Environment and Charismatic Leadership Styles.

Those rewards would lead them to evaluate the value of their employment in work places. It would also be taken to assess the strengths and weaknesses of alternative employment opportunities. The competitiveness of the reward package and healthy work standards would create an atmosphere for better corporate work environment and self-satisfaction of individual employees. However, an introduction of those two dimensions in to an organization is easier said than done or in other words two hard games to play. What is more relevant therefore is to attempt to achieve or to bring-about convergence between individual and organizational needs. As two English scholars on HRM, McKeena and Beech (1997) have suggested, matching of individual organizational needs would decide the degree of motivational disposition of the employees which create climate for an ideal job tenure.

But it is appropriate to keep in mind that when an employee takes exit decision, organization would find it difficult at that point of time to use its discretion to hold him. Therefore prevention of employee exit is better since such decisions are unproductive when good performers decide to leave their employers. Similarly it is a fact that the long tenured employees of organization are good "Memory Officers". As suggested by Professor Abrahamson (2000) such employees help the organization to undertake changes into the system without endangering unnecessary chaos, cynicism or burnout. Hence whatever the reasons constant employee exit may create more complications within the organization. Some noticeables of them would be

* Added cost on re-staffing processes.

* Difficulty to match new recruits for desired employee characteristics

* Loss of good memory officers in the organizations.

* Disturbance to the existing group cohesiveness

* More expenses on training budget.

* Deterioration of employee moral

* Loss of knowledge and skills

. Out-flow of vital information into the hands of competitors.

. Bad image as an employer.

Job Satisfaction and commitment - Boosters of job tenure

It has been proved that high job satisfaction and organizational commitment result in low employee turnover. Empirical studies prove that there is a moderate relationship between these two variables and turnover. The job satisfaction would facilitate to extend the span of job tenure and organizational commitment would play a contributory role to make it more effective. A personnel policy that would not stultify work environment and employee moral is therefore a unique feature to resuscitate the two situations. Hence, Tom Peters and Waterman (Jr) says in their famous book "In Search of excellence" (1996) to treat employees more as adults, partners and also with dignity & respect, that financial spendings and automation, as they are the primary source of productive gains of an organization.

It is therefore necessary to adopt transforming efforts to improve the attitude of job satisfaction among the employees. A research done by three scholars Smith, Kendall and Hulin states that there are 5 dimensions of a job for effective responses of the employers. There are:

i) Nature of the work.

ii) Competitive remuneration package

iii)Promotion opportunities

iv) Methods of supervision and its technical proficiency

v) Support of co-workers

On the above state of things, it is important to develop adequate grounds to cultivate job-oriented mind-set and to revive positive feelings among the employees. It would generate pleasurable emotional states and perception for job satisfaction and organizational commitment. When organizational commitment is there as a positive attitude, it would ensure:

. Strong desire to remain as a member of an organization

. Willingness to contribute good performance for the organization

. Belief in organizational values and goals

. Continued success and growth of the organization

The above two attitudes would also stimulate core employees to consider on continued employment with the organization in a supportive spirit. So if organizational environment is made fertile for the said two attitudes to grow, it would yield.

. More mental and physical health of employees

. Motivation of employees to learn

. New skills and effective performance

. Low degree of industrial disputes

. Low rate of grievance

. Voluntary assistance to improve the methods

. Harmony among co-workers and customers

. Quality of work life with less occupational stress

The foregoing factors denote that retention of employee sin organizations is tactical and deliberate exercise which needs flexible specialization on behavioural patterns plus perpetual novelty towards human skills management. Thomas Teal (1996) former senior editor of Harvard Business Review had upheld a similar concept and stresses that:

"Management is not a series of mechanical tasks but a set of human interactions. So great managers serve two masters, one organizational and one moral."

New look through old lenses

Hence achievement of congruence between organisation and employee needs is of paramount use and reciprocal in effect for affable retention of core-employees. It enhances and underpins the stability of all employees' job tenure and organizational productivity. This is really not a new theory. Before the advents of the school of scientific management, the most respected Indian thinker and philosopher, Sidhartha Gouthama preached some 2500 years ago in one of his discourses "Singalovada Suthra" that any master has responsibilities towards their servants for better interdependability.

i)Design the work to suit employee skills

ii)Pay appropriate remuneration

iii)Assist them by ways of giving leave, medicines, reset etc when they are indisposed.

iv)Offer part of good meal

v)Grant leave and offer finance, costumes etc at their marriage.

In totally it can be stated that figuring out and fostering of proper employer and employee relationship and harmonious work environment are the unambiguous choices to gains continued benefit from optimal job tenure and to eliminate the bad symptoms of core employee turnover form the body of an organization. It would finally contribute for growth and success of an organization. In fact there is nothing new in this phenomenon since what modern managers has to do from the employer - employee perspective is only to have a "NEW LOOK THROUGH OLD LENSES" to preserve positive feelings on stable job-tenure within their organizations.

The writer is Director (Administration), BOI


How to shine and excel in your profession

by Dr. K. Kuhathasan, CEO, Centre for Leadership Excellence and Personality Development

Work is central to people's lives. Not only do many of the world's citizens depend on it for their survival, but it is also a source of integration into society, self-fulfilment, and hope for future generations. Your profession has the potential to be an important source of happiness, satisfaction and stimulation as well as offering security and financial reward.

Your professional development, therefore deserves all the analysis, preparation and planning. You need to be clear about what you want, what resources you have, and how you are going to put your plans into action.

Identify your personal needs and wants in your working life.

These may be concerned with the type of work you would enjoy. The level of commitment which would suit you, the challenges demanded, the level of the security you need or the work environment. It is important to recognize that good working conditions, high salary and pleasant colleagues do not automatically guarantee satisfaction in your job. To be really satisfied you need to be sufficiently motivated. Motivated elements for you may be, for example, determining your work content or using creative talents.

For others using communicative skills, feeling challenged or stretched may be the crucial factor. Think carefully and work out for yourself your own motivator factors. Write down a long list as you can.

Where have I come from?

One way of getting to know yourself, including what motivates you, what you like and dislike, and what is important to you, is to answer the question. Where have I come from? What is my background and how does it relate to? How I think and feel about myself?

Know your skills

Knowing your values and interests helps in determining what you want from a job and career. knowing your abilities and skills helps in determining what you can give to an organization. Begin recording your personal inventory of skills. Avoid comparing yourself to others. One suggestion is to brainstorm on this subject, listing as many skills as you can. Then you can rank them according to those you feel best about and those you want to improve. Keep your list where you can add to it as you identify new skills or more fully develop existing skills.

Skills can be developed through training and experience.

A good career plan identifies current skills, those needed for the next job, and those likely to be required in the future.

The plan can then provide for when and how the needed skills will be developed. The next step is to plan how to find the right position to move you along in your career.

Make a mission statement

Think of yourself metaphorically as a small company. Develop a mission statement that expresses your philosophy and central values. In you statement, include

(1) How do you want to come up?

(2) What do you want to do?

(3) Your most central values!

(4) Who you are? - describe your character

(5) Describe the contributions you want to make!

Establish and visualize your goals

Stephen Covey urges people to "begin with the end in mind". He points out that "all things are created twice". First there is the mental creation, or visualization, of what might be. Second there is the actual creation.

People who have a clear vision of their values and goals tend to direct their behaviour towards fulfilling their mission. Peak performers frequently are visulizers.

Be aware of career stage

Keep in mind the opportunities and pitfalls related to each of the career stages you will pass through.

The first stage usually runs from your twenties into your thirties. In this stage, your goals should be to gain a variety of experiences and to develop basic skills that will be transferable to other positions.

Communicate a positive attitude

Enthusiasm and a positive outlook are contagious. For some people, expressing these traits comes easily. Others have to work at it. The effort is worth the benefits.

Perform

This is as obvious as it is crucial. Yet some people lope rather than run in their first jobs, and some focus so much on the jobs ahead they forget to perform in the present. Excellent performance becomes a habit, just as does mediocre performance.

Capitalize on luck and build on setbacks

Luck often comes to those who have worked hard prepared themselves for unexpected events. Do not count on luck to help implement your life and career plans, but if it should come, rejoice and be ready to capitalize on it. Setbacks come to everyone, but successful people respond positively to them.

They find ways to learn from and build on the setbacks to help them get back on track towards reaching their goals.

Develop a network

Some people concentrate so much on their job at hand that they fail to develop relationships throughout the organization. Usually some conscious effort has to be directed towards building such a network. Those who have established relationship, enjoy the benefits of being hooked into informal communications. Also, friends in strategic places can help you to achieve results that might be difficult if you rely only on the formal organization.

Find a mentor, be a mentor!

A mentor is someone, usually older and more experienced, who helps another person achieve his or her career goals. The mentor serves as a guide, coach, advisor and counsellor. If there is no formal mentoring program, you must find someone in your organization whom you can trust.

However, remember that a mentor is no substitute for performance. Often a mentor is not a direct superior but someone who cares enough about you to share his or her accumulated wisdom and experience.

As you develop experience, look for opportunities to serve as a mentor. Helping others achieve success, is and important attribute of successful managers and professionals.

Plateauing

Virtually everyone who works for a company eventually reaches a plateau beyond which he or she does not advance. For some, this is frustrating because they both want to continue advancing and are qualified to do so.

But in pyramidal organizations, the opening as the top become increasingly scarce. Some find plateauing a normal experience and continue to contribute and find satisfaction in their work. Expectations and attitude have much to do with how employees experience plateauing. Those who find a great gap between their expectations and reality are like to feel dissatisfied and frustrated.

Job satisfaction

It is yours finally it is the dream you have had night after night and it has come true to step out into the real world, the world of the working with confidence, commitment and dedication, sincerity is the key to job satisfaction and it goes a long way in telling your employers what you are all about and where you come from. Let the company's vision become yours so that you know the goals you are working towards, for yourself and for your company. For as long as you are with it yours too!

Adopt the following resolution to make your work more interesting and challenging

1. Work is fundamental element of my life, an activity essential to all aspects of my life.

2. Improvement in work will improve all other aspects of my life.

3. Work is not just a means to an end. My work can and should fulfil and satisfy me at the deepest levels.

4. I possess unique capabilities and talents from which I can create something of lasting value.

5. The responsibility to improve my work rests first and foremost in my own hands.

6. Work occurs in three basic dimensions: doing, developing and discovering.

7. The key to success in any endeavour lies in organizing when and how to emphasize and mix the three dimensions of work.

Final tips

1. Have a realistic understanding of what lies ahead.

2. Understand your career goals, career anchors and personal strengths and weaknesses.

3. Accept responsibility for managing your own career.

4. Identify and improve on the factors that contribute to success.

5. Never lose sight of the fact that solid performance is the foundation of career success.

6. Seek challenge in your job.

7. Develop a good working relationship with your boss.

8. Cultivate a network of friends and allies.

9. Make major career - related decisions with care.

10. Treat the early socialization period as an important learning experience.

11. Plan ahead for potential career opportunities (and problems)

12. Continually reassess your present standing in the organization, as well as your goals and possibilities for the future.

13. Seek a balance between your personal and professional lives.


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