INDEX

Topics
Question 1

Page

Retort (answer) 1: a

01

Purpose of performance appraisal:

02

Objectives of performance appraisal:

03

Retort 1: b

06

Question 2
Retort:

10

Question 3
Retort 3:a

16

Forecasting the demand for HR:

18

Forecasting the supply for HR:

18

Retort 3:b

20

Types & cause of turnover:

20

Analyzing the statement:

24

Reference:

25

Question 1
(a) What are the purposes of appraisal
(b) My manager gave me my appraisal form, which he had completed without
discussion and asked me to sign it and return it within two days. There is a small
space at the bottom for my comments. What are the disadvantages of this
approach to appraisal and how could it be improved?

Retort
Question 1: (a)
Appraisal systems are often misunderstood and mismanaged. Appraisals are central both to
human resource management and performance management. Understanding their role,
objectives, benefits and purpose is important to all employers. Careful preparation and
understanding is required if the appraisal process is to be successful, worthwhile and relevant.
Appraisal systems exist to improve organizational efficiency by ensuring that individuals
perform to the best of their ability, develop their potential, and earn appropriate reward. This
in turn leads to improved organizational performance.

Performance appraisal serves a number of purposes, which include:

1. Feedback - This provides a structured format for the discussion of performance issues on a
regular basis. Feedback either reinforces performance strengths, or provides the opportunity
to discuss resolution of performance deficiencies. As well, feedback is encouraged in both
directions: as such, employees are encouraged to prepare ratings of their supervisors.
2. Career Development - This provides an opportunity for discussion of career objectives,
and creation of a strategy designed to maximize career potential. 3. Performance History This provides a performance history which is not dependent upon human memory, and which
may be useful in the full range of personnel decisions, including compensation decisionmaking.
4. Organizational Goals - This provides an opportunity to view one's performance in the
context of broader organizational goals.
5. Job Standards - This provides an opportunity for clearer articulation and definition of
performance expectations.

Objectives

Objectives for performance appraisal policy can best be understood in terms of potential
benefits. Mohrman, Resnick-West and Lawler (1989) identify the following:

Increase motivation to perform effectively

Increase staff self-esteem

Gain new insight into staff and supervisors

Better clarify and define job functions and responsibilities

Develop valuable communication among appraisal participants

Encourage increased self-understanding among staff as well as insight into the kind of
development activities that are of value

Distribute rewards on a fair and credible basis

Clarify organizational goals so they can be more readily accepted

Improve institutional/departmental manpower planning, test validation, and

development of training programs

According to some writers performance appraisal is a vehicle to

(1) validate and refine organizational actions (e.g. selection, training); and
(2) provide feedback to employees with an eye on improving future performance.
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Validating and refining organizational action

Employee selection, training and just about any cultural or management practice such as the
introduction of a new pruning method or an incentive pay program may be evaluated in part
by obtaining worker performance data.
The evaluation may provide ideas for refining established practices or instituting new ones.
For instance, appraisal data may show that a farm supervisor has had a number of
interpersonal conflicts with other managers and employees. Some options include (1) paying
more attention to interpersonal skills when selecting new supervisors, (2) encouraging present
supervisors to attend communication or conflict management classes at the local community
college, or (3) providing the supervisor one-on-one counseling.
Data from performance appraisals can also help farmers (1) plan for long-term staffing and
worker development, (2) give pay raises or other rewards, (3) set up an employee counseling
session, or (4) institute discipline or discharge procedures.
For validation purposes, it is easier to evaluate performance data when large numbers of
workers are involved. Useful performance data may still be collected when workers are
evaluated singly, but it may take years to obtain significant data trends.
Employee need for feedback
Although employees vary in their desire for improvement, generally workers want to know
how well they are performing. A successful farmer recalled with sadness how as a youth he
had worked very hard, along with his immigrant family, for a farmer who never seemed to
notice the effort. Years later he met the former employer and asked why he had never made
any positive comments about their work. The response from the former boss was, "I feared
you would stop working as hard."
5

People need positive feedback and validation on a regular basis. Once an employee has been
selected, few management actions can have as positive an effect on worker performance as
encouraging affirmation. These are, in effect, good-will deposits, without which withdrawals
cannot be made. This does not mean you should gloss over areas needing improvement.
When presented in a constructive fashion, workers will often be grateful for information on
how to improve shortcomings. Such constructive feedback, however, "can happen only
within the context of listening to and caring about the person." In general, supervisors who
tend to look for workers positive behaviorsand do so in a sincere, non-manipulative way
will have less difficulty giving constructive feedback or suggestions. Furthermore, in the
negotiated approach, the burden for performance analysis does not fall on the supervisor
alone, but requires introspection on the part of the individual being evaluated.
Feedback may be qualitative or quantitative. Qualitative comments are descriptive, such as
telling the shop mechanic you appreciate the timeliness and quality of her repairs. In contrast,
quantitative feedback is based on numerical figures, such as the percentage of plant grafts
that have taken. Some researchers feel feedback is particularly useful when workers have an
achievement objective.

Question 1; (b)
The main purpose of appraisal is that both the employee and employer should be satisfied.
The employer should be satisfied that the employee is functioning well in terms of the need
of the organization. And the employee is satisfied with the employer and the organizations are
looking after their needs. There are many organization, particularly true of large organizations
is that even when they have detailed appraisal policies, the follow-ups is not effective, as
many of the employee do not take appraisal seriously.

Appraisal is important in an

organization as it can help the organization be more efficient and also help the individual
employee gain more job satisfaction. When we have a satisfied employee, the employee is
going to work better meaning a more profitable company. An appraisal is carried out for a
range of reasons which includes performance review, assessing training needs, determining
job change (either promotion or role change), and anything whereby the employer or the
employee have needs relating to each other. And this appraisal system however does not
apply to the situation above.

Many managers or employers nowadays have misused the importance of an appraisal. An

appraisal should be viewed as a very useful outlet for employees to talk about themselves and
their needs. For instance in the case above, the manager fills up the appraisal form of the
employee without even going through the appraisal with the employee assuming that they
will be satisfied and then only providing a small space for their comments if any. The
employee is not given any space to talk about or even give their opinion or express their
thoughts or recommendation. This is really a disadvantage as this way of appraisal will make
or break the motivation of the employee. As motivation has a strong correlation with
productivity, it is the interest of the employer to try to avoid de-motivating the employee.
When the motivation of the employee has dropped we will slowly see a decrease in
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performance and also a drop in the organizations profitability and performance. When
performance drop the companies turn over will be higher and the organization will have to
bear for more losses then profit.

How can we further improve this approach of appraisal to make it much more effective to the
organization for both the employee and employer? We must bear in mind that the appraisal is
for both the employee and employer. Through the process of talking to employees
substantively, the employer will learn a lot about both the workforce and the way the
organization is perceived. These views should be taken seriously as it is a useful means by
which to consider changes in the way the organization is run.

The comments or feedbacks of these employees are essential information to the organization
because with this feedback the organization will ensure that the employee is working
effectively and has carried out their tasks at an appropriate level of performance. The
feedback obtained from the appraisal process is also very helpful in a changing environment.
And years of research also shows appraisal can help improve the productivity of the
organization and the satisfaction of the individual employee when the appraisal is carried out
efficiently.

Maybe in the case above the manager has no time to actually go through the appraisal with
the employee but this is a disadvantage for both side as it discourages communication
between the manager and the employee. As a Manager, allocation of time for conducting an
appraisal is also important; this applies for both the employee and employer. The manager has
to organize the appraisal to be conducted in the time where both the manager and employee
are in a less busy and flexible situation so that communication on both side will be more
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productive. And not just by giving a filled up appraisal form then giving it back to the
employee just for filling up their comments. Im sure that if we were put in a situation like
that, we would not even be bothered to fill in our comment because in this situation we would
feel that our manager themselves are not bothered or having the initiative to conduct the
appraisal with the employee so why bother to fill in our comments.

We can also see here that with conducting an appraisal such as the above, it will not work
well in any organization. This is because too often neither the manager nor the individual has
any sense of ownership as they were not involved or frequently trained in the design or
administration of the system. In this case also we can see that maybe the manager do not like
to deliver negative messages to people whom they must work and whom they often like on a
personal basis. Its because such negative messages may generate defensive reactions and
promotes hostility rather then serves as useful performance feedback. As a manager, he/she
should be able to handle and control such situation.

As a manager, they should know that an appraisal is never just about the individual, it
involves the system in which the individual works and the people they meet every day. We
can also understand the needs of the employee through an appraisal. Either the organization is
fulfilling the needs of their employees, as different individual has different needs. Maybe
some individuals would prefer to have more training and development, some would like a
raise in their pay and some would prefer if the company is able to provide them with more
flexibility in working hours such as working at home. Although different needs vary with the
individual, but this is also a kind of motivation for the employee. As long as the manager is
helping the individual to achieve their personal goals in life, it will also help the performance
of the organization. This is because the employee knows that the organization and their
9

manager are looking after them, so the employees will be more willing to sacrifice their time
and effort for the company. Not like in the case we see above, lets say for example the
employee is a good and hardworking employee although there are a few things that he/she
would like to voice out to the manager but he/she would prefer to express the thoughts
during their appraisal as it is just around the corner. Now when it comes to the time when the
manager is to conduct the appraisal, the expectation of the employee to voice out his/her
thoughts has been cast aside as there was no proper conduct of the appraisal and just
providing the small space for the comment. Now, the manager without realizing what has
gone wrong may just happen to loose one of the best employee in the organization as the
manager has not fulfill the needs of that employee.

In conclusion the manager themselves should be equip with some basic knowledge or skills
on how to conduct a proper appraisal. And not like the situation that we saw above. Gradually
improving these skills, it will help the manager to have a better understanding of what
appraisal is all about so that it will help both the employer and employee to satisfy their needs
and at the same time helping the organization to achieving their goals. The most common
skills that a manager should have when conducting an appraisal is the interview techniques,
listening and counseling skills, negotiation and giving and receiving feedback. The appraisal
should also be conducted in a fair and ethical way and not by favoring an employee or being
bias. An appraisal is also a motivation to the employee as they are able to voice out their
needs and dissatisfaction to the employer. And through this communication both employee
and employer will be able to negotiate and return with a conclusion that will satisfy both
parties. And this is turn will also bring up the productivity of the organization in achieving
their goals.

The End
10

Question 2
The principal aim of disciplinary procedures is not to punish employees but to make
them aware of the expectations of employers and to provide the foundation for
employees to improve their performance behavior .
Discuss this statement within the context of typical framework for disciplinary
procedures.

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Retort
Question 2
Progressive discipline is a process for dealing with job related behavior that does not meet
expected and communicated performance standards. The primary purpose for progressive
discipline is to assist the employee to understand that a performance problem or opportunity
for improvement exists. The process features increasingly formal efforts to provide feedback
to the employees so he or she can correct the problem. The goal of disciplinary procedures is
to improve employee performance.

The process of disciplinary action is not intended as punishment for an employee, but to
assist the employee to overcome performance problems and satisfy job expectations.
Disciplinary action is most successful when it assists an individual to become an effectively
performing member of the organization. Failing that, progressive discipline enables the
organization to fairly and with substantial documentation terminate the employment of
employees who are ineffective and unwilling to improve.

The immediate supervisor generally makes the determination of unsatisfactory performance.

The supervisors determination should be reasonable, proper and factually supported. In
determining whether an employee's job performance is unsatisfactory, a supervisor should
consider a few factors. The factors are quality of work, quantity of work, work habits,
promptness, work performance, accuracy of work, absenteeism, ability to follow instructions,
direction or procedures, the appropriateness of work performed and finally any others factors
that in the opinion of the supervisor are appropriate to determine whether an employees
performance constitutes unsatisfactory job performance.

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An employee is said to be 100% loyal to his or her organization. But he or she may not be
100% engaged with his or her organization role and welfare. For example, an employee
was given 1st oral warning by the management. This is due to the employees attitude of
coming in late to work at least 3 times in a week and giving too many reasons why he or she
is late. Other than that, taking too many medical leave, emergency leave and not finishing his
or her work on time as required by the supervisor. So, the management has decided to have a
private meeting where the appropriate supervisor and employee are present. In this meeting,
the supervisor will identify what is actually wrong with the employees attitude and the
reason why oral warning is given rather than implementing or recommending disciplinary
action. The supervisor will also advise the seriousness of the matter, its adverse effects, the
importance of the offense not recurring and if such an offence is repeated, he or she is subject
to disciplinary action. And the management decided to give that particular employee a period
of time for the employee to overcome the problem.

If the employee refuses to correct the problem immediately, then the employee will subject to
disciplinary action by the management. If there is any improvement on the employee within
the time period given, it is advisable for the management to give anything in writing, saying
that the employee has improved and the management appreciates that very much. This type of
appreciation is very important, where it will motivate the employee to assure the full
commitment and engagement to the organization. At the same time, the employee able to
understand that the oral warning given by the management is not a punishment but to help the
employee to overcome his or her performance problem.

Now, lets look at another example, which happens in an organization. A comes to works
everyday, arriving before 7.30am but the official office working hour for his organization
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starts at 8.00am. Its obvious that he is always early half and hour everyday. This is actually
good example of being an employee. Once in office, he goes to canteen to have his breakfast.
But he comes back to his desk only after 8.30am, which he is half and hour late after the
official working hours starts. And when he is at desk, he answers calls and mails that are
mostly personal matters or issue. He uses the organizations telephone for hours on his
personal calls. He has split his priorities and does not devote all his time and energy for his
organization. His supervisor has been observing his attitudes for quite some time. One fine
day, his supervisor went and discussed about this matter to the HR manager of the
organization. The HR manager advice the supervisor to speak to the employee and advice
A before taking any disciplinary action against him. So, the supervisor called A for a
discussion where the supervisor gave an oral warning to him to correct his problem. Since
A took it too personal because he and the supervisor were not in a good term all this while.
So, the following day, itself A tendered his resignation. Although A is aware that the
fault is on his side, but he refused to admit it neither to cooperate with the management to
overcome the problem. Thats the reason why he tendered resignation letter just for a normal
oral warning by the supervisor.

In this case, the employee misunderstood between an oral warning and a punishment. Even
though, the management or the supervisor doesnt mean to punish him. In fact the employers
intention is to make this particular employee to understand of the employers expectation and
also to provide the foundation for this employee to improve his performance and behavior.
Since the employee refuse to listen to the supervisor and at the same time, refuse to correct
his problem, I would say that the looser is A. If he were to join another organization, the
same behavior will be repeated again and the same problem as how it happened in the
previous organization will occur again in the present organization. If this were to continue,
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how many jobs does A is going to quit? Isnt that the problem would have been solved if A
were to corporate with the management earlier itself?

In conclusion, to avoid this type of problem to happen in an organization, both employer and
employee should work together to overcome certain problem in order to increase the
performance level and efficiency of the organization. Both the employer and employee
should aware of their expectation on each other. By knowing the expectation, both the
employer and employee can work in a better working environment. For example, the
employee should know what is the employers expectation and the employee should work
hard in order to reach the expectation level. At the same time, the employer should also know
what would be the employees expectation. Lets say, if an employee reach the employers
expected level, now the employer should appreciate the employee by giving more bonus,
more increment or even an award saying The Employee of the Year. This will definitely
encourage the employee to work even harder for the organization and the turnover of the
organization will decrease. On the other hand, it is also important for both the employer and
employee to work together in order to maintain a better relationship and to create a better
working environment in the organization.

The End
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Question 3

(a) Matching demand and supply is often stated as fundamental in Human

Resource Planning (HRP) Explain what is meant by demand and supply in this
context and explain how each can be assessed.

(b) A company which designs computer software employs 30 people of whom 10 are
highly qualified technical experts. The company is situated in the same area as
several competitors and pays comparable salaries and benefits. Labor turnover
among the experts is 20% and among other staff 10%. The average turnover in
the area where they are based is 13%. Explain what labor turnover means,
using these figures aas examples, and list five possible reasons for the companys
turnover levels.

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Retort
Question 3:a
Companies must now operate in a rapidly changing business environment. These changes
have important implications for HRM practices. To ensure that management practices support
business needs, organizations must continually monitor changing environmental conditions
and devise HRM strategies for dealing with them. The procedure used to tie human resource
issues to the organization's business needs is called human resource planning. Also known as
HR planning, this procedure is defined as the "process of identifying and responding to
[organizational needs] and charting new policies, systems, and programs that will assure
effective human resource management under changing conditions."
The purposes of HR planning are to enable organizations to anticipate their future HRM
needs and to identify practices that will help them to meet those needs. HR planning may be
done on a short- or long-term (three or more years) basis. Its aim is to ensure that people will
be available with the appropriate characteristics and skills when and where the organization
needs them. The use of HR planning enables companies to gain control of their future by
preparing for likely events. That is, they can anticipate change and devise appropriate courses
of action. When companies learn how to capitalize on future events, their own future
improves.
When engaged in human resource planning, a company derives its human resource needs by
first forecasting its demand for human resources (i.e., the number and types of people needed
to carry out the work of the organization at some future point in time), and then its supply
(i.e., the positions that are expected to be already filled). The difference between the two
forecasts signifies the firm's HR needs. For example, if a firm estimates that it will demand
12 accountants during the next fiscal year and expects to retain its supply of nine who are
17

already on staff, its HR need would be to hire three additional accountants. Following is a
closer look at how a company can determine its HR needs and devise plans to meet them.
Matching the availability of skilled and unskilled resources to market demands lies at the
heart of Human Resource planning in a services oriented business. Planning the shape' of a
people business, that is the proportion of individuals in each band of seniority or grade is
critical to the long term health of the business The appropriate staff mix, i.e. blend of skills,
experience and seniority, not only drives profitability in say a law firm or consultancy but is
also fundamental to the delivery of customer satisfaction. Too few senior staff could drive
poor quality work and low profitability, whereas too many could squeeze margins.

Forecasting HR supply and Demand:

In HR planning forecasting is the most important job done by the HR specialist. The
information gathered from scanning the external environmental and assessing internal
strengths and weaknesses is used to predict HR supply and demand in light of organizational
objectives and strategies. Forecasting uses information from the past and the present to
identify expected future conditions. For forecasting there is particular methods used by
managers. Forecasting method may be either judgmental or mathematical. Methods for
forecasting human resources range from a managers guess to rigorous and compels computer
simulation. Despite the availability of sophisticated mathematical models and techniques,
forecasting is still a combination of quantitative methods and subjective judgment. The fact
must be evaluated and weighed by knowledgeable individuals, such as managers or HR
planners, who use the mathematical models as tools and make judgments to arrive at
decisions.

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Forecasting the demand for Human Resources:

The demand for employees can be calculated for an entire organization and/ or for individual
units in the organization. For example, a forecast might indicate that a firm needs 125
employees next year, or that it needs 25 new people in sales and customer service, 45 in
production, 20 in accounting and information systems, 2 in HR, and 33 in the warehouse. The
unit breakdown obviously allows HR planners to better pinpoint the specific skills needed
than the aggregate method does.

Demand for human resources can be forecast by considering specific openings that are likely
to occur. The openings (or demands) are created when employees leave positions because of
promotion, transfers, and terminations. The analysis always begins with the top positions in
the organization, because from there, no promotions to a higher level are possible. This
analysis is used to develop decision rule for a financial institution might state that 50% of
branch supervisors openings will be filled through promotions from customer service tellers,
25% through promotion from personal bankers, and 25% from new hires. Forecasters must be
aware of chain effects throughout the organization, because as people are promoted, their
previous position become available. Continuing our example, forecasts for the need for
customer service tellers and personal bankers would also have to be developed. The overall
purpose of the forecast is to identify the needs for human resources by number and type for
the forecasting period.

Forecasting the supply of Human Resources:

Once human resource needs have been forecast, then availability of human resources must be
identified. Forecasting the availability considers both external and internal supplies. Although

19

the internal supply may be easier to calculate, it is important to calculate the external supply
as accurately as possible.

The external supply of potential employees available to the organization needs to be

identified. Extensive use of government estimates of labor force populations, trends in the
industry, and many more complex and interrelated factors must be considered. Such
information is often available from state or regional economic development offices:

Net migration into and out of the area.

Individuals entering and leaving the workforce.
Individuals graduating from schools and colleges.
Changing workforce composition and patterns.
Economic forecasts for the next few years.
Technological developments and shifts
Actions of competing employers
Governments regulations and pressures
Circumstances affecting persons entering and leaving the workforce.

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Question 3:b
The word turnover means voluntary cessation of membership of an organization by an
employee of that organization. Which is important as it is in instances where the employee
controls the leaving process that organizations and theorists have an interest in turnover. This
definition also refers to cessation of membership but it should be acknowledged that from a
more institutional or organizational perspective, turnover may also include accession or
Entry. The scope that a voluntary / involuntary dichotomy offers for classifying the
phenomenon enables directed. Particularly where turnover is thought to be associated with a
factor (such as organizational commitment), or to be preceded by a psychological state (such
as intent to quit), drawing the distinction between voluntary and involuntary turnover is
important, otherwise assessment of such a relationship in terms of all organization leavers
will be flawed.
Voluntary vs. involuntary turnover
Practitioners can differentiate between instances of voluntary turnover, initiated at the choice
of the employee, and those involuntary instances where the employee has no choice in their
termination (such as long term sickness, death, moving overseas, or employer-initiated
termination).
Typically, the characteristics of employees who engage in involuntary turnover are no
different from job stayers. However, voluntary turnover can be predicted (and in turn,
controlled) by the construct of turnover intent.
Internal vs. external turnover
Like recruitment, turnover can be classed as 'internal' or external . Internal turnover involves
employees leaving their current position, and taking a new position with the same
organization. Both positive (such as increased morale from the change of task and supervisor)
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and negative (such as project/relational disruption, or the Peter Principle) effects of internal
turnover exist, and thus this form of turnover may be as important to monitor as its external
counterpart. Internal turnover might be moderated and controlled by typical HR mechanisms,
such as an internal recruitment policy or formal succession planning.
Hertzberg's Two factor theory & McClelland's Theory of Needs:
High turnover often means that employees are unhappy with the work or compensation, but it
can also indicate unsafe or unhealthy conditions, or that too few employees give satisfactory
performance (due to unrealistic expectations or poor candidate screening). Low turnover
indicates that none of the above is true: employees are satisfied, healthy and safe, and their
performance is satisfactory to the employer.
Many psychological and management theories exist regarding the types of job content which
is intrinsically satisfying to employees and which, in turn, should minimise external voluntary
turnover. Examples include Hertzberg's Two factor theory, McClelland's Theory of Needs,
and Hackman & Oldham's Job Characteristics Model. Among the various reasons of high
turnover two factors are mostly studied by the psychologist. One is Hertzberg's Two factor
theory and another one is McClelland's Theory of Needs for which leaving tendency increase
instead of having good salary, or benefits .Bellow these two are discussed:

Two Factor Theory fundamentals

Frederick Herzberg's studies of job attitudes and their connection with industrial mental
health are related to Maslow's theory of motivation. His findings have had a considerable
theoretical, as well as a practical, influence on attitudes toward administration. According to
Herzberg, man is not content with the satisfaction of lower-order needs at work, for example,
those associated with minimum salary levels or safe and pleasant working conditions. Rather,
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he looks for the gratification of higher-level psychological needs having to do with

achievement, recognition, responsibility, advancement, and the nature of the work itself. So
far, this appears to parallel Maslow's theory of a need hierarchy. However, Herzberg added a
new dimension to this theory by proposing a two-factor model of motivation, based on the
notion that the presence of one set of job characteristics or incentives lead to worker
satisfaction at work, while another and separate set of job characteristics lead to
dissatisfaction at work. Thus, satisfaction and dissatisfaction are not on a continuum with one
increasing as the other diminishes, but are independent phenomena. This theory suggests that
to improve job attitudes and productivity, administrators must recognize and attend to both
sets of characteristics and not assume that an increase in satisfaction leads to a commensurate
decrease in dissatisfaction.

The two-factor, or motivation-hygiene theory, developed from data collected by Herzberg

from interviews with a large number of engineers and accountants in the Pittsburgh area.
From analyzing these interviews, he found that job characteristics related to what a man does
that is, to the nature of the work he performs apparently have the capacity to gratify
such needs as achievement, competency, status, personal worth, and self-realization, thus
making him happy and satisfied. However, the absence of such gratifying job characteristics
does not appear to lead to unhappiness and dissatisfaction. Instead, dissatisfaction results
from unfavorable assessments of such job-related factors as company policies, supervision,
technical problems, salary, interpersonal relations on the job, and working conditions. Thus, if
management wishes to increase satisfaction on the job, it should be concerned with the nature
of the work itself the opportunities it presents for gaining status, assuming responsibility,
and for achieving self-realization. If, on the other hand, management wishes to reduce
dissatisfaction, then it must focus on the job environment policies, procedures, supervision,
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and working conditions. If management is equally concerned with both (as is usually the
case), then managers must give attention to both sets of job factors.
The theory was based around interviews with 203 American accountants & engineers in Two
Factor Theory distinguishes between:

Motivators (e.g. challenging work, recognition, responsibility) which give positive

satisfaction, arising from intrinsic conditions of the job itself, such as recognition,
achievement, or personal growth, and

Hygiene factors (e.g. status, job security, salary and fringe benefits) which do not
give positive satisfaction, although dissatisfaction results from their absence. These
are extrinsic to the work itself, and include aspects such as company policies,
supervisory practices, or wages/salary.

Essentially, hygiene factors are needed to ensure an employee is not dissatisfied. Motivation
factors are needed in order to motivate an employee to higher performance, Herzberg also
further classified our actions and how and why we do them, for example, if you perform a
work related action because you have to then that is classed as movement, but if you perform
a work related action because you want to then that is classed as motivation.
Unlike Maslow, who offered little data to support his ideas, Herzberg and others have
presented considerable empirical evidence to confirm the motivation-hygiene theory. Their
work, however, has been criticized on methodological grounds. Nevertheless, Herzberg and
his associates have rendered a valuable service to science and to management through their
efforts to apply scientific methods to understanding complex motivational problems at work
and have stimulated others to continue the search.

McClelland's Theory of Needs

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McClelland proposes that each of us have three fundamental needs that exist in different
balances. These affect both how we are motivated and how we attempt to motivate others.
n-ach: Need for achievement:
Seeks achievement, attainment of goals and advancement. Strong need for feedback, sense of
accomplishment and progress
n-affil: Need for affiliation:
Need for friendships, interaction and to be liked.
n-pow: Need for power
Authority motivated needs to influence and make an impact. Strong need to lead and to
increase personal status and prestige.
It seems that some people have a very strong need to achieve, whilst the majority of people
are not motivated in this way. McClelland was so interested by this that he focused his
research on the need to achieve.

Analyzing based on figure

If we look at the given statement, we may notice that the employers are given comparable
salaries or benefits comparing to the other companies. But still turnover rate in the experts are
20%. There may be several reasons behind this turnover. It is seen in many companies that
salaries is ok comparable to the other companies but more pressure on work which causes
voluntary turnover. Very strict working environment sometimes lead to live the company.
Empowerment to the individual workers influences to stay with the company. Excessive
control from the management also may add numbers to turnover. As experts position mostly
25

different from non expert workers or trainee or who is at the entrance level. 10% turnover
rates are noticed in other technical experts. The turnover causes also differ from others.
Employees from lower level also like to take the opportunity to grow. Research shows that
company giving good salaries and benefits but there is a little chance to get promotion or get
enriched with other related knowledge. Company arranged training for workers to enrich
there knowledge on specific software or technological skills. If there is no such opportunities
then it also trigger for turnover. Excessive work stress is another important cause for leaving
the organization. Here we can see another 13% turnover rate on that area. In studies it is seen
that the area where the company also affects the trends of turnover. In this 13%, cause like
transportation, accommodation, child education, commodity expenses and other causes can
be included. Actually turnover from the job mostly influenced by the motivation of the
workers. That they are satisfied or dissatisfied with the work.

The End
26

Reference
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