Importance of Motivation in Rention Essay

Employees ar the most cardinal f biteor in the success and hardship of any organization. In service industry, employees ar in direct click with the customer, hence they should be cause. Firstly, this paper foc use of wides and servicess on importance of employee indigence on Staff retention, by considering the concepts of module retention, employee overturn and employee penury. Further discussing almost the major motifal theories, followed by the factors which help to change magnitude demand and okay up with some latest examples. Secondly, it takes a case study of Heathrow Windsor Marriott, a leading 4 star Airport Hotel, it reflects my observations about the good and fallacious practises followed by the trouble of hotel. And at the end, this paper tries to give some recommendations for next practice.1. Introduction Managing Human im bestridery has become an inescapable and prominent apostrophize to the worry in service industries (Watson 2003).In simple terms, Human means proletariat/employee, Resource points out employees ar valued assets and focus refers to managing personnel of an organization. The quarry of Human resources is short term and it brinyly focuses on employee relations. However, cod to globalization, this deliver was fruitless, hence its focus adopted the aspect of st prescribegy.Strategic Human Resource Management means combing Human resources with strategic goals and objectives to improve and overhaul organization (Regis 2008). gibe to Banfield and Kay (2012), Human resource management is the glue which ensures logical argument success by means of consistent practises and adapting local conditions. In an organization, employees are the un ca-cad force, whose never ending efforts converts the organizations purpose into exercise with the posture of achieving common goal. and so, employees should be motivated (Hossain and Hossain 2012). The fast changing agonistical communication channel surround has pre sented challenges for Human Resource professionals for adopting new methods of crossingion and organizing of conk out.This situation has accelerate the rate of employee overturn. Employee resourcing, employee reading, employee relations, productivity are the emerging issues faced by management (Banfield and Kay 2012).The problem of Employee indigence has become inseparable from Human Resource Management because, employees acts as a major source of organization. This paper is divided into two major parts, literature and reflection. The aim of this paper is on how employee motivation contri just nowes to staff retention. The first part on literature covers topics like Staff retention, turnover & motivation and demonstrate a descent between employee motivation and staff retention. The second part reflects the practises carried out Heathrow Windsor Marriott Hotel, followed by recommendations for future.2. Staff storage Staff retention refers to the techniques employed by the management to help the employees run with the organization for a longer period of time (Management remove adopt 2013). Every organization puts efforts to transform a raw material to incorporate ready material by big(a) necessary readyings at even interval to master the common goal. trading satisfaction is a full of life comp adeptnt of staff retention which atomic number 50 be achieved by devising the employee feel comfortable physically and psychologically.Staff retention is crucial for many a(prenominal) reasons much(prenominal) as, longer time spent by the employees have an hazard to perform better, it subjoins their loyalty towards organization, on the other hand, recruiting the even up candidate for the right position is non easy, when an employee leaves an organization, he whitethorn join competitors and may deal some confidential information. When a clever employee leaves their subscriber line, the organization is at a complete loss, as a loyal, efficient and stable staff is adept of the keys to competitive success (Taylor and Walsh 2005). This loss of staff has to be replaced which is termed as Employee turnover. This is unrivaled of the greatest challenges faced by management. Retention is not only important to reduce the turnover cost precisely to retain talented employees. agree to Ramlall (2004), when every 10 charabancial take aim employee leaves an organization, a company experiences virtually loss of $ 1 million.2.1. Employee Turnover Rotation of workers around the labour mart between the status of employment and unemployment is called as Employee turnover (Abassi and Hollman 2000). Labour turnover has become a critical problem for service industries as it depends on human factor. Employees do not leave the organization without any important reason. Taris et al. (2004), divided two motives for turnover i.e. the push and pull factors. The pull factors take on inequity in compensation, availability of opportunities fo r future development over the remote market and the employees who would resign to go into private business.The push factors have relationship with the dissatisfaction of work situation, sine qua non of democratic managerial pattern and stock stress. On the other hand, Griffieth (2000), viewed remuneration and remuneration related variables have intense printing on turnover. Griffieth demonstrated a relationship between remuneration, employees instruction execution and turnover and concluded that when an employee performs extremely well expects a lofty allowance and when they are paid low they quit. There are various costs associated with turnover, according to Society for Human Resource Management, it costs 30-50% of the annual applyment of entry level employees, 150% of middle level employees and up to cd% costs of the high level employees (Blake 2004).The various costs includes, exist costs, recruiting, interviewing, hiring, orientation, benefits epoch training, lost p roductivity, administrative costs, customer dissatisfaction etc (Susan 2011). Considering the case of Oberoi Hotels. The Oberoi group is one of Asias leading multinational companies, the Oberoi hotel named Windsor Hotel in Melbourne, had witnessed an average annual employee turnover rate of approximately 40 percent. The Human resource professionals were under pressure due to increasing costs, hence they decided to an employee attitude survey for three in series(p) years and analysed the issues faced by the staff.The most common reasons for attrition were speculate profile and psycheised profile does not match, least growth opportunities, lack of appreciation, lack of trust, lack of co-ordination between the colleagues, stress from work, imbalance between personal and professional life. The Hotel executive group and the managers improved the retention programmes and motivated their employees by engagement which helped them to reduce their turnover rate to 20 per cent (Watson et al. 2002). Hence it can be said that, employee turnover can be controlled by proper employee motivation which would help the companies to reduce costs associated with turnover.3. Employee motif agree to Butkus and Green, motivation is derived from the word motivate which means to move, push or exploit to proceed for fulfilling a command (Kamalian et al. 2010). One of the important functions of management is to create go outingness among the employees to perform. motivation can be termed as a bear on in which a person stimulates an individual to full fill some want or expectation (Mullins 2007). Motivation is complex because of human behaviour as it changes from an individual to individual, resulting different motives for motivation (Kressler 2003).Employee motivation finds productivity, because companys feat depends on employee performance. Hence it is very important for managers to realize what propels employees to reach the jacket crown performance. Through employee moti vation, the employer can encourage the employees by enhancing their skills and by improving their morale. Motivation is important for both individual and business. In case of individual, motivation helps to achieve personal goals, job satisfaction, self development and in case of business, motivation helps to achieve the organizational goals, to build a couthy relationship and the most important it bring stability in workforce. Overall, it cans help to achieve competitive advantage in competition by retaining talented employees (Hiltrop 1996).3.1. Motivation Theories Motivation theories are based upon the under meeting of employees and work. There are two main approaches to motivation theories, i.e. Content Theory and Process Theory. Content Theories of motivation explains what causes individuals to act in a definite way based on the oecumenic agreement that all human beings have wishing, which engage them to satisfy these unavoidably lead to motivation. Process Theories of mot ivation explains on how employees inescapably influence their own behaviour (Hossain and Hossain 2012).3.1.1. Maslows Hierarchy of askIn 1943, Abraham Maslow presented need based theory. His theory was based upon the assumption of hierarchy of needs. He categoriesed needs into five types, i.e. Physiological needs ( basic needs of life, example, air water, nourishment etc.), Safety needs (physical and environmental safety), Social needs (need for love, affection), Esteem needs (needs for self-respect or recognition and Self-actualization (based on grwoth and self-contentment). Maslow assumed that motivation decreases as one level of need is met and motivation increases as another need comes in. He potraid that lower level of needs should met before the higher level needs. Maslow felt that if these needs were not met then a person would split to develop into a heathly individual (Hellreigel 2004).Implications by Britannic Assurance Britannic Assurance is a monetary services compa ny, facing issues of employee motivation and retention. Hence, their management adopted the Maslows theory to overcome their issue. The management motivated their employees by considering each level of needs Physiological Needs Management gave their employees fitted salary, in odrer to meet the basic needs of life and at piece of work they gave proper meal breaks, so that phsciological needs are meet.Safety Needs Management provided clean and hygienic workplace, safety, job security and beniftis program with a purpose of retention. Social Needs Management supported their employees by encouraing group work, and developing a friendly relationship. Esteem Needs In decree to acheive esteem needs, management put extra efforts by observeing and recognizing employees at every level. Self-Actualization Needs Management gave their employees challenging jobs so that they can use and develo their knowledge and skills, and grow big, by benefiting the company (The Time 100 avocation p late Studies, 2013).Criticisms According to Lazarus (1971), the hieraracy suggested by Maslow not valid if cross-cultural differences are taken into consideration. McLeod (2012) said, it is difficult to predcit when a need will arise, as ther is no relationship between needs and behaviour and different individual may be pushed by differnet needs at same time. He in any case states that maslows theory lacks empirical support. While Rilley (2012) came with a view that this role model aviod the usual behaviour of employees who tolerate low wages for future benefits and mentioned that maslow look into was based on middle class workers in UK and USA. Inspite of having some critics, Maslows thinking remains inflential to management deliberations in respect of job design, earnings and reward structres and helps to motivate employees and retain them (Huczynski and Buchanan 2001).3.1.2. foreboding Theory Victor roar in 1964, came up with expectancy theory which was based upon Valence, instrumentality and Expectancy. The undivided perfrence for a precise end result is termed as Valence (V), Instrumentality (I), is the anticipation of good performance will lead to valued benfit and Expectancy (E), is the anticipation of effort will lead to good performance. The Force (F) or want of your motivation to take action will result the product of three variables through with(predicate) multiplication. If any one of the variable is zero the last product will be zero, as it is co-related (Fudge and Schlacter 1999). F = Vx I x EIn orther words, Efforts, Performance and Rewards have a direct relationship. roar said that employees deliberately decide whether to perform or not, their decision is entirely depended on level of motivation. This theory expalins individual differences in motivation and behaviour, it measures the force of the motivation to behave, it assumes that behaviour is rational and emphasis on rewards and pay offs (Sanders and Pritchard 1973).Implications b y Management The management should try to link effort, performance and rewards through their support. Suport in terms of adequate trainings, availability of resources and clear rewards to have sought after motivational effect (Fudge and Schlacter 1999). Clear rewards should have value in the eye of emloyees so that they can be influenced. Performance standards should be clearly instructed. Finally, the motivation level should be continousuly assessed which results can inidicate problems and changes required. This will help to retain employees (Virgil et al. 2008)Criticisms The application program of this theory is limited as reward is not direclty related to performance, it has handle the parameters such as education, position etc. It cut downd majorly on financial rewards and ignore other intrinsic and alien rewards. According to Latham (2007), it also lacked the normal of equality with relation to rewards. This theory predicts the choice of efffort, it does not give special meaning of efforts, it also lacks to specify the outcomes relevent to a particular individual (Management Study Guide 2013).3.2. Types of Motivation There are two types of Motivation, developed by Herzberg, i.e. intrinsical and Extrinsic Motivation. The factors which are intrinsic to the job such as recognition, work itself, growth is called as Intrinsic Motivation and the factors which are external to the job such as pay, company policy, security etc. are called as Extrinsic Motivation (Armstrong 2007). Intrinsic factors create satisfaction and adscititious factors do not create satisfaction but if preventive action is not taken then it may lead to dissatisfaction(Ryan and Deci 2000). Intrinsic factors are likely to have deeper and long term effect while extrinsic factors are likely to have immediate and powerful effect but it wont last long. Both Intrinsic and Extrinsic factors concentrate more on satisfaction and not on productivity (ibid).3.3. Motivation Factors All employee s are motivated when their needs or desire are satisfied, these needs vary from person to person, situation, experiences, etc. These factors affects the motivation level in employees. Let us understand the practical implications of various factors3.3.1. Motivation through Rewards Employees who work hard to achieve the business goals, expect to receive rewards for their contribution. According to Perry (2009), rewards play a crucial role in motivation employees to work harder. He categorised rewards into two types Extrinsic and Intrinsic. Extrinsic rewards are provided by the organisation group such as money, benefits, promotions etc. while Intrinsic rewards come from individual such as self-esteem, personal development and smell of competency.The most critical thing for this approach that rewards must be equal, it should be partial (ibid). Let us take a case study of Royal Bank of Scotland, The employees at RBS are not only motivated through money but also through Total reward bene fits. Total reward benefits includes not just money, but it includes motivational motives such as personal choice in working hours, security, health and benefits package, shop vouchers personal loans at special price etc., This kind of extra benefits will help a company to retain an employee (The Time 100 line of business Case Studies 2013).3.3.2. Motivation through Job Deign When a voltage employee looks for job, he has basic two attractions, i.e. money and feeling of pursuing a challenging and interesting job. Job Design is an internal approach of motivating employees. There are two ways in which a manager motivates its employees i.e. try-on people to jobs and fitting jobs to people (Hackman and Oldham 1975). Considering the first aspect of fitting people to jobs, managers can strengthen motivation by Job Rotation, Job Rotation helps to bring a change in daily routine, it helps to increase the area of expertise at work by moving from one specialization to another, this would no t only lead to personal development but also will develop a team with wide grade of skills (Perry 2009).Considering the second aspect of fitting jobs to people, managers can energise motivation by Job Enlargement and Job Enrichment. Job Enlargement is a process in which an employees are indulged with more challenging labor movement, this will reduce the unglamorous of work and increase the skills of employees. However, Job Enlargement has one criticism, if an employee is working on two or more challenging tasks and paid for only one task, then there will be a barrier of not being paid well (Saleem et al. 2012). Job Enrichment is a process in which an employees is given more control over the work by giving more authority and responsibility, which would increase the productivity. However, this was also criticised with a point of that an employee should have got certain skill in order to perform at high level, if the employee lacks necessary skill, then it would decrease productivi ty (Janson et al. 1975)3.3.3. Motivation through stool Environment Work environment nearly cause 27% of job satisfaction (Tyilana 2005), Management should create a type of work environment in which the employees are respected and treated equally. Management should provide job security and proper logistic support and create a friendly environment. If any one of them is lacking, then the motivation level would not stand still. However, Lin (2007) said that good working conditions can determine employees performance and productivity but cannot motivate them directly.Considering case of An Enterprise Rent-A- Car, management accented on creating an affirmative work environment. In which they concentrated on six points, i.e. good relationship between all the employees, follow clear communication so that each individual can understand and act as per their role, supplying of adequate resources to perform the necessary tasks, encourage employees to grab things right, if any thwarting is experienced then acknowledged and try to keep their focus on achieving goals and last but not the least, try to recognise the effort of individual and reward the good performance. Along with the points discussed above Enterprise Rent-A-Car use Herzberg theory of motivation to motivate and retain their employees (The Time 100 blood line Case Studies 2013).3.3.4. Motivation through Training and schooling Training and Development is one of the most effectual factor of motivation (Lai 2009). Training can be termed as a process in which an individual get a chance to develop their knowledge, qualities, skills and personality (Khan 2012). Training and development helps to increase morale of employees, better interpersonal relationships, better position to adapt changes and in the long run improved productivity and efficiency (Seward 2011).As rightly said by Marcus Tait, the Director of Human Resources of IHG Australia, training and nurturing talent shares an equal weight age along opera tional performance, guest experience and corporate responsibility. He trained his employees to be multi-focused, empathetic and preventive of guest needs (Eime). Whenever, an employee is recruited, he should appoint with all kinds of basic training, his performance has to be measured and accordingly he should be trained by considering his skills and ability. Concentrating Training at McDonalds eating place Limited, The success of McDonalds business is high standards of quality and service delivered to customers, Well-trained staff and line managers are the first tincture towards achieving these standards. Welcome Meeting, was the first step taken by the company to inform the standards and expectations, followed by structured development programme which provides training in all areas of business.McDonalds concentrated on floor based training and expected that their employee would perform any task with relation to operations. After the practical training, McDonalds used to do class room-based training where they can concentrate on quality, service and cleanliness. After this training, employees are label as per the check list and if they qualify then they can get promotion by clearing an entrance exam. In this way McDonalds used to train their staff (The Time 100 Business Case Studies 2013).