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Through this paper, we will explore and evaluate contemporary thinking on the behavior of individuals and groups in an organizational context. We will also explore and develop an understanding of the theories, concepts and techniques employed in strategic human resource management. Furthermore, we will assess the contribution of HRM to the achievement of organizational goals and synthesize this knowledge of HRM, together with the awareness of wider contextual issues, in order to develop appropriate responses to situations. We will also systematically & creatively translate organizational behavior theories, concepts and techniques into the management of the human resource adopted in a range of organizations and we will critically assess and evaluate the theoretical basis of strategic human resource management. Finally, we will systematically formulate appropriate HRM responses to enable the organization to better achieve the organizational objectives. The topic that the paper is talking about is the employees' turnover rate. Job dissatisfaction, low level of job commitment and engagement, the culture in the organization, and the power and politics in an organization play a huge role in the employees' turnover rates. In this assignment, we will talk about the turnover rate and the effect of the turnover on our chosen organization which is Marks a Spenser. Then we will reflect on theory to get logical explanation for the reasons behind this issue. Also, we will apply the theory on the chosen organizational. We will also discuss the added value to the chosen organization from the performance perspective and we will conclude our paper with the recommendations and issues that needs to be solved. We are also surprised to find out that most of the complaints were about the lack of recognition and feedback while we were expecting the unhappiness to arise from the financial schemas.
Marks and Spencer has operated over the last 128 years. M&S has grown from a market stall to a multi-channel retailer with over 1,100 stores worldwide, employing more than 81,000 people. M&S remain true to their founding values of Quality, Value, Service, Innovation and Trust ensuring that their offer continues to be relevant to their customers. M&S own brand model sets them apart from the competition delivering 'Only at Your M&S' food, fashion and home ware to M&S customers. Marks and Spencer's longstanding history of innovation helps them lead the way with first-to market products across food, fashion and home ware. M&S are the UK's leading clothing retailer and offer high-quality food, with a focus on freshness, convenience and specialty. As an own-brand retailer M&S products are unique and they further differentiate their offer through exclusive collaborations and a careful selection of the very best international food brands. M&S' marketing philosophy was simple: produce high quality products
Under a recognized brand name at affordable (but not cheap) prices, and
Advertise through word-of-mouth. M&S creates value through the following diagram:
Employees turnover and its Impact
When an employee leaves the organization, many factors are taken onto consideration. Those factors lead to plenty of expenses in form of replacing the old employee with a new one. also, the workload that needs to be covered because one employee is leaving is taken into consideration too. This happens because of many different factors affected job satisfaction and eventually played an important role such as organizational communication, power, and politics. Communication is defined as the transference and understanding of meaning. Communication functions as control agent over the member's behavior. It also fosters motivation for what is to be done and provides a release for emotional expression. Moreover, it provides information needed to make decisions. The communication Process goes through several steps between 2 point (sender and receiver) which results in the transfer of the meaning. The diagram below explains the process of communication:
The Sender: initiates message
Encoding: translating thought to message
The Message: what is communicated
The Channel: the medium or the channel that the sender selects and through which the message is transmitted to the receiver is called the channel. channel are divided into two types:
The formal channel is used to send official messages that have relation with professional activities in the organization. The informal channel is used to send personal or social messages throughout the organization. The informal channels appear on the spot and they are as per the individual's responses. Another issue we are tackling is the power and politics within the organization. Power is defined as the capacity one person has in influence over another person so that the other person acts as per the needs of the first person. In other words, power is how much a person can influence other to do what he wants and achieve certain goals. Power requires followers' dependency and it is utilized to get upward influence. Power is also divided to 4 types, formal, coercive, Legitimate, and Personal. Formal power arises from the position a person have in an organization. Coercive power is based on fear of having bad performance results. The legitimate power is the power that arises from formal authority control due to the person's position in the organization. The legitimate power is the power that is obtained from moral and character of the person. It is the most effective power because it base of soft and skeptical skills and knowledge. The third issue that we are covering is the political behavior within an organization. The political behavior is defined as certain sets of activities that are not defined in the job description of the person. In other words, political behavior is so behaviors done in the organization to gain influence, distortion, obstruction or bypass of certain rules. The political behavior could also be divided into legitimate and illegitimate behaviors. The legitimate behavior is practiced through day to day politics and the illegitimate political behavior is practiced through violations and sabotage.
Theories about Turnover
To start with job satisfaction, it has been defined as "a function of the perceived relationship between what one wants from one's job and what one perceives it as offering (Locke,1969). Many factors are considered when an employee leaves an organization. The first factor will be all the expenses that the organization needs to bear from end of service to monetary payments for the employee. The second factor is the need for another resource to fill up the place of the leaving employee until another person is recruited to fill up the vacancy. Every time and employee leaves and organization, the turnover rate will increase, and the cost of replacing this employee needs to be calculated by the organization. The calculation of the cost when an employee leaves is important, but not all organization takes it seriously. In fact, over 50% of organizations believe that this information is not relevant and 31% believe that it takes up too much time and is not worth the effort (CIPD, 2004). If organizations don't calculate the cost behind the turnover rate, the organization will not understand the importance of it manpower's effect on the organization. In case an employee is leaving, the company will be left with two options. The first on was explained above and it was giving the workload to one of the existing employees until the vacancy is filled. The other, is to find a temporary employee until a permanent one joins the organization. If plenty of people leave and plenty of temporary staff is hired, the workload on permanent staff will increase and this will be another reason for the rest of the permanent staff to leave. This will definitely increase the turnover rate and will deepen the issue of the high turnover within the organization. Most researches in the field indicate that cultural aspects of learning organizations are increasingly of interest as one of the most positive influences on employees. These cultural influences can promote more collaborative relations among the team members, which in turn encourage a supportive learning climate (Watkins & Marsick, 1993). The level of employees' workplace-related satisfaction is one of the most critical components for their retention (Song, Kim, & Kolb, 2009). Several studies found that supportive learning culture promotes higher level of job satisfaction and quality of work process, which include turnover intention, attrition, knowledge creation and commitment (Song, Kim, & Kolb, 2009). Organizations need to find out why their staffs are leaving so they can come up with a plan to stop this from happening again and again. On example on methods of finding out why employees are leaving is the exit interview. The exit interview is an increasingly common procedure when an employee leaves an organization (Furnham, 2001). The exit interview is held shortly after the employee submits his resignation letter. It is the opportunity for the organization to find out why the employee is leaving and what the conditions are or circumstances that made this employee leave. The exit interview will also help the organization in determining the source of error in the process and start to find solutions for the turnover issue.
Process Implemented for Employee retention
Learning & Development
Learning and development are integral to M&S success. They are committed to helping their employees, through training, to develop the necessary skills and knowledge to perform effectively and fulfill their employees' potential. M&S are committed to developing their employees into skilled, customer focused, enthusiastic and motivated employees. Any opportunities for promotion are open to all and depend on ability, skills and experience. With the line manager, the employees should take responsibility for learning and development. The employee should actively identify the training and development needed by recognizing the strengths and weaknesses. Learning is a continuous process consisting of coaching and practical on the job experience, supported by relevant formal training and a wide range of learning resources. All employees are expected to attend training appropriate to their job role as and when necessary. For example: implementation of new systems.
Educational sponsorship scheme
M&S operate educational sponsorship schemes, which provide financial help and time off to any permanent employee who wishes to develop their skills to improve their overall job effectiveness. If an employee is interested, a scheme pack is available. A discussion about the employee's interest with the respective line
Manager is encouraged.
Review of performance
The employee's respective line manager should review the performance continually in order to assess how the employee is doing. It is also a way of helping the employee assess him / her and look for further development. The success of the performance review is very much in the employee's hands since he/she takes the opportunity to participate fully in all discussions about his/her work and performance.
Good Conditions of Employment
People contribute to the success of Marks and Spencer and should therefore be rewarded accordingly by sharing in M&S progress and profitability. People should enjoy coming to work and deserve a high standard of working environment. Being part of Marks and Spencer means becoming part of a big business. M&S have a proud heritage of innovation, of bringing new products and technology to the market at amazing value. They are proud that they do business ethically and responsibly and they care about the world, their customers and colleagues and the communities they work amongst.
For Marks and Spencer, people should be treated as individuals with respect and honesty. It's easy to get lost in a large organization and feel that the employees are 'just a small fish in a large pond'. The secret is to remember that each one of employees is a unique and valuable part of this organization. Relationships run more smoothly when people are valued as individuals in their own right whatever their differences. Policies are for everyone but their application works best when they are considered on an individual basis, with respect for personal circumstances and in strict confidence. All M&S employees have a great manager who really cares about who they are. The manager will stretch and develop the employees and will be honest about what needs to be delivered. The figure below shows some data about M&S employees:
Marks and Spencer aims to create an environment where communications between everyone are open and honest, in all areas and at every level. Real involvement in business objectives depends on good communication between all employees. M&S believe this is very important so that information and ideas can be freely and easily exchanged. Regular meetings, both formal and informal, may be used to discuss Company information and everyone's contribution is essential.
Despite a challenging trading environment, there is an annual "You're Say" employee survey provides engagement scores. Results showed a strong relation between the high engagement of employees and the employees' performance in stores. This has led to higher results (8% to be specific) of satisfaction in mystery shopper campaigns led by consultants measuring the customer satisfaction on companies employ resource engagement techniques over organizations that don't employ resource engagement techniques.
Improved Retention Strategy
Marks and spencer have always conversations with their high performance executives to ensure they know their place in building the future of the organization. They also outline a clear career paths need to be outlined for their employees and they have improved succession planning needs, with greater transparency for the high potential executives. Also, fresh blood is always brought in to the high potential group by using strong screening and assessment tools at managerial level. Marks and Spencer has a good data and smart analytics around engagement and retention amongst executive groups as well as they have a greater ability to communicate more transparently with them around career development and future prospects.
Marks and Spencer continually engage and involve their people in their plans to ensure they fully understand the vital role they each play. M&S communicate with our employees across a range of channels and measure engagement annually. From the Board down, M&S are focused on developing leadership and future talent to secure strong succession and deliver their growth ambitions with high employee retention rate. Our data analysis showed that the main causes behind the employees' turnover are better job offers and the poor wages that the organizations provide. Also, the long working hours and the poor and demanding management are the reasons behind the employees' turnover. Those factors are related to the theories of motivation such as Herzberg's two factor theory or Maslow's Hierarchy of needs. The two theories justify the turnover of employees in a motivational way. For example, to decrease the employees' turnover, the organization needs to provide better wages and give them better career advancement options. This will help the employees in being satisfied in their jobs and will encourage them to work harder. The retail industry it not satisfying those needs and that is the reason behind the high turnover rate in the retail industry. This is giving the employees the sense of worthlessness and will decrease the sense of loyalty to the organization. As a consequent response from the employees, they will start looking for a better job opportunity and hence, increasing the turnover rate for the organization. Also, another issue contributes to the high turnover rate in the retail industry and it is the negligence of the exit interview by the retail companies. Exit interviews will help organizations in knowing what went wrong with the employee so that he/she took the decision in leaving the company. It will help the retail organizations in determining the source error in their current HR policies in order to reduce the high turnover rates. Also, this will help organizations in cutting costs through retaining their employees, which the spent high overheads on, in order to make them fit for the job through finding the information on turnover rates.