Resignation is the factor that affects employee's behavior and also the organizations, employees' resignation some time create the problem for organizations, which may be not good for the organizations so in this situations manager must have skills to handle the employee's resignation. And the style of the handling the resignation is valuable for organizations, through the styles of handling resignation may impact on work environment. Resignation is not depend on a single cause, it is combination of causes which reflect overall (Simha, 2001). Private organizations employees dissolve their relations by the terms end whether the organizations accepts or not resignation or otherwise consents (Wongwatcharapaiboon, Sirikanokwilai & Pengpaiboon, 1999).
The organizational environment is considered to have a very important impact on task performance (Newman, 1977). The researchers found that employee working in such environment where they are supported by the organization to testify their abilities and skills have bought positive outcomes in due to creativity (Shalley, Gilson & Blum, 2000).Resignation as the act of retiring or withdrawing formally from a position or office. It should be noted at the outset that the facts constituting a "resignation" may differ according to the type of controversy involved (Mantziaris, 1997).
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This study carries unique combination of variables which has been never studied before. This study will propose managers to understand the different ways of handling the employee's resignation, which is necessary to every organization. It will propose to understand the situations where organization facing the trouble of resignations, which also reflects that company has inefficient retention plan, and also create bad perception in co-workers mind. The research will further study that what is the impact of independent variable (Managerial Handling of Resignation) on Dependable variable (Work Environment), and how managers can avoid reduction in employee's satisfaction.
1.2 Problem statement
To study the effect of managerial handling of employee resignation on work environment.
H1: There is a relationship between managerial handling of employee resignation and work environment.
1.4 Outline of the Study
The study is done on finding the relationship between the managerial handling the resignation and work environment. To find out that if any employee of organization is resign, so resignation of this person had any effect on work environment or not. As employee resign some of them usually negative act, which went against to the organization. Work environment of organization create complexity when any employee resign, factor of fear comes in employees, if employees do not have information of the resignation. Relationship between both variables and there impact, and what are precautions to be taken to improve work environment.
1.5.1 Managerial Handling of Resignation
In private sector resignation is disfavor because there is also a power which influenced and the power is shareholders (Mantziaris, 1997). Form factors which leads resignation, the important point noted that the leadership (Skaggs, 2008). Top level management some times forced to employees to resign because of the mismanagement system and wrong decision of employees (Wongwatcharapaiboon et al, 1999).Top level management some times forced to employees to resign because of the mismanagement system and wrong decision of employees (Mantziaris, 1997).
1.5.2 Work Environment
Researchers found that employee working in such environment where they are supported by the organization to testify their abilities and skills have bought positive outcomes in due to creativity (Shalley et al, 2000) (Amabile & Conti, 1999). Organizational environment has a very significant impact on employee's satisfaction, motivation and performance (Newman, 1977). Those work environment which related to those organization which downsizing, appear to be marked by chaos and high level of uncertainty (Amabile & Conti, 1999). The context defines the importance of work environment. Context coats all fundamentals of psychological climate of both the formal organization (policies and procedures) and the informal organization (values, norms, and interpersonal relationships), that context can be significant not only in affecting survivors' reaction to layoffs but also in formative those reactions impact on job performance and other outcomes (Amabile & Conti, 1999) ( Amabile, Conti, Coon, Lazenby & Herron, 1996)
CHAPTER 2: LITERATURE REVIEW
Employee resignations happen from time to time. Whenever employees of any organization resign, there are chances that the employees of the organization may be angry of some issue, and do some act which is against of organization. The number of employees decreases, due to the new rules and polices, and sometimes due to extra training by the organization. Extra work and more responsibility is lead to increase in the work load, which is cause of stress (Wongwatcharapaiboon, Sirikanokwilai & Pengpaiboon, 1999). The one of the issue rose which is pay of employees, employee want pay rises as the responsibility and work load increase. The highly technical skilled employees of private organization are facing brain drain where compensation is problem (Mantziaris, 1997). The relation between the employees and the manager is create the conflict, and the because of this conflict some of them blamed on other. Not all blamed should be put in employees favor because the good communication channel of the managers (Simha, 2001).
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Employees have most important impact which is satisfactions, motivations and task performance and it considered by the whole organizational environment, which include the members of organization (Newman, 1977). In social class work environment is the broader context which has strong tradition. The role of the work environment is very important which is highlighted by the many authors (Amabile & Conti, 1999). Stress on work environment depends on job situation and it's happened because of the conflict in family. The role of work might be not important for employees of organization because work not be giving meaningful activity (Kasl, 1996). One of the theory frame work tell that the function of person is the behavior, this is assumed the instrument of work environment (North, Syme, Fenney, Shipley & Marmot, 1996). Some theories are concerned with threat of situation, defined as an external circumstance, which are mostly include the some groups, individuals and organization having harmful or negative interest (Amabile & Conti, 1999). In some organizations have one work environment and some organizations have different, some aspect of the organizational environment is considered homogenous and other differ with the subgroups (Amabile et al, 1996).
Managers faced difficulty with employees in current work environment because today work environment is rapidly changed (Einarsen, Raknes, & Matthiesen, 1994). Employees individual's personal problems are effected the working environment in the organization, which may be painstaking the psychological problem of employees, employee's personal attributes does effect their performance at work (Burr, Bjorner, Kristensen, Tuchsen & Bach, 2003). Managers say they found mix of positive and negative responses of employees with due respect to their personal problems in organization or if they are motivated they might produce positive response (Lahtinen, Digert & Reijula, 2004). Organizations deliberately increase the variation in work, both mentally and physically, in the course of the expansion of work contented (Kasl, 1996). Although the current studies describe the psychological factor of employees, such as highly time pressure on employees, work load, very poor social support and bad interpersonal relationships (Burr at al, 2003).
The frame work of theory suggests that employee's perception of work environment is related to the employee's location in organization and employee's own characteristics, managers tend to believe that employees does seek its future capability and growth options in organization and they also compare its current position at the organization (YoungBlood, Denisi, Molleston & Mobley, 1984). Mangers tend to believe that employee wants to see their current position at the organization and they compare their current position to its future perspective of job (Newman, 1977). Finding from the latest studies we found that the work environment's perception have influence on performance, work environment have both negative and positive effect on individuals. The characteristics of the work environment include all factors, organizational rules and police which are associated with the organization and job complexity (Shalley et al, 2000).
Handle the resignation depend on situations when manager face it, handle the employee resignation is manager's ability that how manager is able and has skills to handle the one of the most sensitive issue of organization. Mostly employees resign because of the family, they want to give the more benefits to family which is covered by getting the job which facilities more than current organization (Wongwatcharapaiboon,et al , 1999). There are some important factors which lead employee resignation factors include the issues of family problems (do not give proper time to family), some time salary, inefficient leadership and lack of attachment from organization (Skaggs, 2008). Resignation issue mostly suggest the salary problem, which is considered the main factor of the resignation, due to this employee never retain in any organization, which create threat to the organizations (Hurlimann, 2010). Decision making of employee some times creates pressure on him, which may be become issue of leaving the organization (Mantziaris, 1997).
Some studied finding is productivity and test of abilities in work environment by the employees of the organization, if employees get supportive co-workers, and support by the organization management (Shalley et al, 2000) (Amabile & Conti, 1999). Employees of the organization have some positive factor such as performance of the employee, satisfaction and performance have the impact on employees (North at al, 1996). On the level of high uncertainty organizations pointed the environment of the work that it must related to well and good, thus there are any downsizing (YoungBlood at al, 1984) (North, at al, 1996). Organizations influenced by the perception of work environment to carried out the creative work (Amabile et al, 1996) It has been proved by earlier studies that organizational environment has a very significant impact on employee's satisfaction, motivation and performance (Newman, 1977). Psychological work environment create mentally work overload, which is the factor of risk through it employee dissatisfy from the organization. Psychological work overload create the stress and other disease, mostly work go beyond the occupational category, job dissatisfaction and hours of work (Kasl, 1996).
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The managers at top level are seemed to be more concern about the right managerial handling. Employees are supposed to be more focused on managerial issues such as making right decisions at right time, using thier decision making power in a right way. While if employees are found of doing mismanagement or not considering their role, managers would tend to agree on the fact that employee must resign and leave the organization (Mantziaris, 1997). After the resignation employees give there views not the favor of organization, mostly one thing is came out which is conflict between the resign employee and management. Relationship between the managers and employees has strong impact on when issue of the resignation comes, manager give favor to employees who has relation (Simha, 2001). Resignation is given by employees immediately when the some moral issue happened with employees, and employees do not think any more, employee feel very high moral responsibility which led to resignation (Mantziaris, 1997).
Work environment of the organization is important place where employees satisfy with work and their work activities (Einarsen at all, 1994). May be different employees experience different work environment within same organization thought by the theoretical model and findings of Gersick (Amabile et al, 1996). Women are slightly more positively than men in term of contents of social support and their work, women are found more precise and more focused at work, they seek the opportunities to grow better than man, and they work better with the environment. Women adjust it self with new social circles and they know well to maintain their work and remain focused on work with adjusting to its environment (Lahtinen, Digert & Reijula, 2004). Organizational work environment has effect to the behaviors of the employees. Focused on the work environment to create motivation for employees and encouragement them, support employees, and it lead good performance and good work results. Frequently measurement of work performance and additional benefit systems is used to encourage and support (Amabile & Conti, 1999).
Gender does not affect the rate of resignation; both have their different primary issues while the female is mostly resign because of the family, male and female have different issues to resign but common problem find both them is family issue, problem in family is big matter of the employee of the organization to resign, which is difficult to the management to handle it (Wongwatcharapaiboon et al, 1999). When employee gives the resignation they do not get any compensation from organizations, as organization gives when employee leaved it through any other reason (Hurlimann, 2010). In private organization resignation is disrespect because there is a power factor which influenced in private organization, the power mostly come from the top level management, other power is also influenced the decision of employee resignation and the other power is shareholders, which is not compare to the top level management as they have superior power (Mantziaris, 1997). Some framework studies suggest that there are some factors of the resignation which has strongly impact on the resignation, the factors of the resignation which create the resignation of the employee of organization has pointed, one of them important point noted is the leadership. Managers leadership skilled is weak than there is chance of the resignation of employees (Skaggs, 2008).
Relationship of characteristics of organization to the behaviors and attitudes of the members of organization conclude that impact of organized work environment on responses of worker is not good from the present understanding (Newman, 1977). When there is greater complementarily the effect on satisfaction and intentions to leave (turnover intensions) will be greater (Shalley et al, 2000). There are aspects of work environment which reflect it in different situations Hours of work, Job dissatisfaction and Measures of specific dimensions, work environment is it self a larger set of variable and these variables do affect on employees performance and its adjustment with the environment. (Kasl, 1996). One of the factor tell the way of job is structured for employees to give satisfaction and motivation, through the structuring of the job employee may be retain in organization and give best performance at work place (Shalley et al, 2000). Study of some authors suggested that the relative work environment various strength is diminishing between the different conditions of the work (Amabile et al, 1996). Managers today believe that employees are more satisfied from what their environment does for them suppose employee would be more satisfied and will produce good work if he gets support from the environment. It is found that employees give more positive response if they are supported by their environment. If employee sees its future growth in organization they will tend to stick to organization for more long time and will perform within their provided power (YoungBlood at al, 1984). The excellence of the human relationship at place of work always seems of the important factor of employee perception of job satisfaction and work environment (Einarsen at all, 1994). Work environment's characteristics complement the creativity required level by job, there is chance employee satisfied with work and less chance to leave the organization (Shalley et al, 2000). Changing in work environment and longitudinal assessments, these cross-sectional assessments included in work environment at specific point (Burr at al, 2003)
CHAPTER 3: RESEARCH METHODS
Method of Data Collection & Procedure:
The method of data collection is proposed personal survey, because the 50 managers of organizations do not have time to entertain this research but employees can give time easily. For research contact to managers direct personal ways. Personally we will meet them and also tell the importance of research. Time of data collection would be 2 working weak. To keep remanding managers we will go there time to time so that response will be on time, and without delay.
Sampling technique and procedures:-
The proposed sampling technique is based on quota of both managers and employees. Used in this research Convenience based sampling technique the non-probability based sampling technique because it is efficient and effective way of collecting samples. The circle of collecting samples will depend upon some basic factors: Selected sample must be located within Karachi.. Select the managers from the elected organizations who have faced the resignation issue.
Proposed sample size of research is pragmatic 50 managers and 150 employees. Because the research basically based upon the managers so the size is limited of mangers.
Instrument of Data Collection:
Instrument of data collection is questionnaire because of the most research get through the managers of organizations, who do not have enough time to give this study.
3.4.1 Validity and Reliability test
Case Processing Summary
a. Listwise deletion based on all variables in the procedure.
If cronbach's Alpha is greater than 0.6 than its mean that the responses data is reliable. With respect to this description this study has cronbach's Alpha is 0.847 this means data responses of the study is reliable.
Research Model Developed
Managerial Handling of employee resignation
For this research a model needed to be developed based upon the hypothesis of the study that allows the statistical tools to have a clear line of connection of the relationship among various aspects of the research variables.
Following statistical techniques are going to used to check the variables.
Regression: To check whether the relation between the variables exist of not. Co-relation: To check the magnitude of variables.
CHAPTER 4: RESULTS
Finding and Interpretation of the result
The study of the research is for finding the relationship between the both variables either they have relationship or not. Relationship between the managerial handling the resignation and work environment, for handling the resignation manger give responses and for work environment employees give responses.
The statistical technique used for data analysis is co-relation because in research finding both variables have relationship or not. The result of the SPSS is in table and test with statistical technique. We find the unique result of research.
There is no relationship between the managerial handling the resignation and work environment.
Hypothesis Assessment Summary
The hypothesis of the research is rejected because there is no relationship between the managerial handling the resignation and work environment.
CHAPTER 5: CONCLUSION, DISCUSSIONS, IMPLICATIONS AND FUTURE RESEARCH
There are many studies done by different researchers. Some have discussed the effect of work environment on employee's performance while others have studies upon how the managerial issues motivate or decrease motivation among employee of organization. In organizations work environment is the broader context which has strong tradition. The role of the work environment is very important which is highlighted by the many authors. Resignation is one of key factor in organization. Resignations are one of continuous practices performed by managers. This study has suggested that there is a relationship between employee resignation, managerial handling and work environment. Resignation is the factor that affects employee's performance. Employees' resignation some time create the problem for organizations, while it brings out mismanagement and dimotivation among employees overall. Whenever employees of any organization resign, there are chances that the employees of the organization may be angry of some issue. If employees resignation is not handled in a good way other employees.
Employee consents depend upon managerial handling of resignations and to handle its any negative effect on work environment. The researchers found that employee working in such environment where they are supported by the organization to testify their abilities and skills have bought positive outcomes in due to creativity
There is a need to understand how resignations may affect environment, so because resignation handling is one of the major practice of manager such as recruitment training and others. Resignations are one of general practices performed by employees and managers must understand if their different ways of handling resignation affects its work environment.
This study has its importance in organizations as above discussed resignations are one of common practices of managers and employees. Its mismanagement may result in problems in work environment. This research has concluded that there is no such effect on work environment.
There is no relationship between the variables and hence there is no relationship between employee resignation, managerial handling and work environment. No matter how managers handle the resignation their will be no effect on work environment.
This study has concluded that there is no relationship between the variables and hence there is no relationship between employee resignation, managerial handling and work environment. For future the study between variables may be bought by reducing or adding other variables. Variables relationship may be managed in other way to study its effect and relationship.
The created hypothesis is rejected, which concludes that there is no relationship between the variables. Managerial handling of resignations does not put any effect on work environment. This study has bought that no matter how managers handle the resignations they do not effect the work environment. This study has significance for managers; resignation handling has no relation to the work environment. There was a need to understand how resignations may affect environment because resignation handling is one of the major practice of manager such as recruitment training and others. Resignations are one of general practices performed by employees and managers must understand if their different ways of handling resignation affects its work environment.