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These days as the environment has become so unstable as well as it changes so rapidly that many of the organizations have to face certain significant challenges to retain the competent employees for the preservation and the enhancement of an organization's competitive edge. Many of the experts and specialists have often referred to job contentment and encouragement as the behavior of being committed which leads to employee retention. An employee commitment is an important sign that shows a valuable relationship between bosses, colleagues and other team members (Barsade and Gibson, 2007).
Many other studies recognized that those organizations that follow equality approach have certain impact in terms of on job performance, job contentment, group work, staff dedication and turnover ratio which in turn affects the overall productivity. There is one more study that gives emphasis on the effects of job contentment in terms of overall organizational productivity which could not be ignored. Other researchers focused on different factors like working atmosphere, role conflict and other demographic factors that affects organizational overall productivity (Lambert, Hogan and Barton, 2001).
The equality approach and the organizational impartiality reflects the study of equality within the organizational surroundings that start off working in social psychology intended to comprehend the equality problems in social communication (Greenberg, 1987).
The equality approach has mostly used in economics as an intention to explain the consequences. Whereas as in individual assessment, the role of equality in generating conclusions has only just been recognized still its significance in enlightening the individual performance has extensively complex in other social sciences (Kang, 2007).
The example of an equality approach that organization follows has a certain impact in organization on an employee's performance in view of the administration. On the other hand if workers have well-built self-identity in the organization then it would enhanced their job performance and also proves to be as the motivational factor. There are certain inferences that equality discussions are most prominent aspect of economic exchanges that operates beside the maximization of financial advantages, which is verified by the outcomes of social psychology experiments, challenging games and reciprocity experiments (Fischer, 2004).
There are many organizations that invests large amount of resources on their workforce for their training and development in order to retain them in their organization. Managers are trying hard to minimize workforce turnover at all costs and also to enhance their human resource practices. Through many studies it is found that there is no set structure that explains the workforce turnover process properly, but a broad range of aspects has been found that are useful in defining employee turnover (Kevin, Joan and Adrian, 2004).
Through different studies it was found that there is a need to build up full understanding of the workforce turnover, especially about the reasons that determines workforce turnover, its effects and approaches that managers can develop to reduce this turnover.
As the globalization increases the competition, organizations should develop certain strategies with the help of employees to develop good quality tangible products and provides reliable services. Taking decisions with help of employees is very important as these employees are enormously essential to the organization as their dedication towards their work is tremendously valuable and cannot be easily replaced (Meaghan and Bontis 2002).
1.2. Industry Background
As Pakistani Banking sector has viewed tremendous changes from the time of its independence. When Pakistan was made it has undergone numerous deficiencies of resources and faced a lot of uncertainties due to widespread political and socioeconomic conditions. Besides this the Pakistani banking sector also had an expansion in its size, system and composition because of the amalgamation of different commercial, micro finance and Islamic banks throughout the country. The result of this amalgamation turned out to be an increased in competition between banks to attract large number of potential customers by the providing high quality services and long-term benefits. Whereas UK's banking sector is the third biggest throughout the world in terms competence, diversification and return on capital which is subsequent to US and Japan. The banking sector of UK has seen an essential change with market liberalization and the increased competition.
According to building societies Act of nineteen eighty six the building societies were permitted to expand their financial services that included insurance and also allowed to transfer into banks. Due to this building societies Act of 1986 many insurance companies convert into banking and many banks varied into mortgage and insurance. The main reason of this research is to allocate the views of employees regarding equality and to identify the effect of workforce equality on motivation and turnover objective, keeping in mind the Pakistan and UK banking industry
2. LitÐµrÐ°turÐµ Review
An overview of inferences has been given on workforce equality insight or organizational righteousness towards its employee's commitment and turnover purpose, the equality approach and the organizational impartiality reflects the study of equality within the organizational surroundings that start off working in social psychology intended to comprehend the equality problems in social communication (Greenberg, 1987).
According to some researchers the way employees are treated with equality within the organization is an important aspect of this research. The idea of equality has target an enormous part of research and it also has significant effects on organization and its workforce ( Kreitner and Kinicki, 2008).
The concept of equality focuses on individual's idea about equality in the organization (Saunders, Thornhill and Lewis, 2003). The equality research and the organizational righteousness towards its employees have been seen as a direct development of the idea of equity theory (Kreitner and Kinicki, 2008).
Many researchers believe that equality is all about the commitment to the ethical principles within the organization. With this idea employees' attitudes towards work including commitment (Kang, 2007) and the service activities are all related with the idea of equality in the organization (Moorman. 1991).
Different equity theories recommend that the idea of equality on jobs is motivational base that could persuade the actions and emotional responses of employees. According to the researcher the employees through equity theory assess the exchange relationships with the workplace they are associated with like in terms of a relation between efforts used up and the amount of rewards obtain at work. The efforts could be any broad investments like intellectual, skills, knowledge, preparation and superiority and other work activities in terms of working overtime for task completion. Whereas the rewards could be given to employees in terms of incentives that includes money incentives, promotion, social distinctiveness sense of worth, social status (Adams, 1965).
When employees perceive injustice within the organization it might be due to several reasons in terms of the efforts that employees put in and the rewards they get shows differences which arouse a repulsive emotional state and discourage the employees to work harder as well as such differences also effect employee commitment towards organization. According to a research to reduce the recognized inequity, an employee may depart from job, may reframe the standards of efforts and rewards or may change comparison scope (Adams, 1965).
Other studies have revealed that many employees do assessment of efforts and rewards on the basis of organization righteousness towards them. The equality idea or organizational righteousness theories are generally divided into three different components; procedural, interactional, and distributive (Fischer, 2004).
The distributive component focuses on the degree to which how people perceive the reward obtain in return for their efforts and then associate it to the equity theory. (Chew, 2005). Sometimes different Human resource practices encourage inequity among the employees which in turn effects the attitudinal and behavioral changes of employees towards the organization. Whereas distributive component of justice refers to the perceived equality in the distribution of resources and rewards, while the procedural component of justice is more related to the perceived equality of the process used in taking the decisions (Kang, 2007; Kreitner and Kinicki,2008).
According to employees procedural component of equality is very important as it proposes them a guarantee of equality in human resource decisions of promotion, performance assessment and grievance handling. After examining many studies on equality perception of employees it is found that positive thinking about the procedural and distributive components of justice could enhance the involvement of employees in taking decisions (Kreitner and Kinicki, 2008).
The last component of justice is interactional justice which defines the important role that quality of interpersonal communication plays in taking organizational decisions (Kang, 2007). Interactional justice is all about whether the employees of an organization feel that they are treated equally when it comes to the execution of decision (Kreitner and Kinicki, 2008). Many other researchers wanted to examine the effects of three organizational justice components so they incorporated all the components together (Brockner and Wiesnfeld, 1996).
After examining the tree components of justice together researchers concluded that distributive justice, procedural justice and interactional justice are all related to each other as well as with the other aspects like organizational commitment and organizational behavior of employees towards organization (Kreitner and Kinicki, 2008).
After going through several studies it is found that many organizations believes the fact that employee turnover has pessimistic consequences on an organization like monetary cost for the recruitment to fill the place of the left employee as well the training and development cost of the new employee. Another important aspect is found through different researches that any employee who leaves his job has a direct link to the job satisfaction which in turn effects an organization negatively (Riordan, Gatewood and Bill, 1997).
Other researchers tried to identify the relationship between job satisfaction and employee turnover in order to develop the structure on employee turnover process (Mobley, Griffeth, Hand and Meglino, 1979). The researchers concluded that less employee turnover maintains the organizational performance as well as increases organizations ability to attain organizational goals efficiently and effectively and understand the customer needs (Koys, 2001; Mak and Sockel, 2011).
Many former researches pointed out the major role of workforce in providing services and also how important it is to treat them equally which proves a great relationship between the concept of equality in employees and the organizational activities (Abassi and Hollman, 2000).
For managers an employee's job Satisfaction and retention at an organization have been the most significant issues because for each employee job contentment is different at the organization. For some employees just the words of appreciation are more enough to boost their morels where as for some employees only money benefits or incentives make them satisfied. If the employee is satisfied it effects the organization positively in terms of increased productivity and good performance by employees. Many employees gives more preference to the working environment if the working environment is good many employees feel satisfied with their jobs, so maintaining a good working environment might motivate employees as well as help the organization in retaining them (Magner, Welker and Johnson, 1996).
As it is described above that level of employees job contentment is different for each employee for some just the pay level and benefits for others they perceived the equality of the promotion scheme within the workplace and some employees give preference to the quality of working environment to management and social relationships. Employers must define jobs to the employees that incorporate the opportunities of acknowledgment and rewards. As organizations are well aware about the negative consequences if the employee is not satisfied with his /her job they know that dissatisfied employees decreases the productivity, increases the turnover and absenteeism which in turn effects the consistent productivity and performance of the organization (Zimmerman, 2008).
Researchers have studied and identified the external reasons and factors which results in the turnover of the employees. Chew (2005) has said in his research that there a lot of differences in the motivation levels in different regions and countries just because of the difference in the pay scales. The research described that a handsome package of salary is one of the most pivotal factors in the motivation of the employees and has played a significant role for the Human Resource Department in reducing the employee turnover.
The organizations that have employees with knowledge about the external environment and the working environment, they tend to have low turnover of employees because they usually have good interaction systems (Labov, 1997). It is a known fact that if an organization has an easy communication atmosphere, and employee manager relation is healthy, the turnover of employees automatically gets affected in a positive way thus decreasing cost of new hiring. Decentralization, that is dispersion of authority wherever is found in the organizations, employees tend to be loyal to that organization and they feel important for the organization. Therefore critics say that employees should be well acquainted with the overall issues and matters at hand in the firm (Magner et al. 1996).
Gerhart (2005) says that Strategic Human Resource Management if planned properly, its practices can have a great impact on the motivation level of the employees which in turn has positive impact on the organization's efficiency and effectiveness. In the same way employees must have a positive image of the Human Resource Department of the organization, if not it can have adverse effects and if positive can be very beneficial for the firm and the employees both (Riordan, Gateway & Bill, 1997).
3 Research Aim, Research Question or Hypothesis
3.1 Hypothesis Statement:
H1: Employee fairness perception has a positive impact on their motivational level
H2: Employee fairness perception has a positive impact on their turnover intent
3.2 Research Obejective:
The objective of the study is to identify the relationship of employee's fairness perception with employee motivational level and turnover retention. Employee fair treatment and motivation is one of the important factors for every business and it helps the organisations to become successful if done fairly and strategically, so I am interested in finding that how do we need to treat our employees and what problems do the employees face during their job tenure and how it effects their motivation and turnover. Hence, The objective statements are as follows
1-To find out the perception of employees on fairness
2- To identify the impact of employee fairness on motivation and turnover
3.3 Aim of the Research:
It is very important to any employee to understand and have this feeling that the organization he works for values his presence. The motivation level of any employees determines the satisfaction of his job for him. The main reason I took up this study was to understand the different aspects of employee motivation and job satisfaction in relation to the practices followed by the organization for it.
4. RÐµsÐµÐ°rch Methodology
4.1 Variables Used
Pinder (1998) describes the level of motivation as "Ð° sÐµt of ÐµnÐµrgÐµtic forces that originate both within Ð°n well Ð°n beyond Ð°n individual's being, to initiate work rÐµlÐ°tÐµd behavior, and to dÐµtÐµrminÐµ its form, direction, intensity and duration"
Employee turnover is defined as the changing of the employees in an organization, due to various factors like unsatisfactory job (Abassi & Hollman, 2000).
4.2 Sample Size and Sampling Technique:
In this research, we will take 5 banks of Pakistan and 5 banks of UK and Convenience sampling has will be used as a sampling technique
4.3 Instrument/Method of Data Collection:
Questionnaire will be used as an instrument to collect a data and data is collected through Personal meetings in Uk and by emailing the questionnaire to the respondents in Pakistan. Questionnaire will be make to find out the perception of employees on fairness and to identify the impact of employee fairness on motivation and turnover
4.4 Reliability and VÐ°lidity:
The instrument will be-tested and will filled by the respondents in order to identify whether the questionnaire is easy to understand and have a clear meanings according to research. Reliability test is the test of measuring reliability and validity in the variables of the constructs and indicates the properties of scales of measurement and the things that build them up. However, the data is deemed reliable if the value of 'Cronbach's Alpha' is greater than .5.
4.5 Statistical tool used:
We propose Regression technique for the analysis and the interpretation of the data because we need to identify the impact of employee fairness (Dependent Variable) on motivation (Independent Variable) and turnover (Independent Varaiable)
5. TimÐµ ScÐ°lÐµ
TimÐµ Scale for this Dissertation will be as follows considering Ð°ppropriÐ°tÐµ, rÐµÐ°listic Ð°nd Ð°chiÐµvÐ°blÐµ approch.
1 - 3
Construct rÐµsÐµÐ°rch proposÐ°l
DrÐ°w up quÐµstionnÐ°irÐµs
PÐµrmission from Supervisor
4 - 5
Submit proposÐ°l to the Concern Authority
7 - 9
Personal Meetings and emailing the Questionniare
10 - 15
ÐnÐ°lysis Ð°nd rÐµdÐµfinÐµ problÐµm(s)
15 - 17
ImplÐµmÐµnt findings from cyclÐµ 1
17 - 20
PrÐµpÐ°rÐµ drÐ°ft rÐµport
21 - 26
BÐµgin full dÐ°tÐ° Ð°nÐ°lysis
27 - 30
WritÐµ 20,000 word dissÐµrtÐ°tion