INDEX

Topics Page Question 1

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

1

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?

2

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 decision-

making.

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.

3

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.

4

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 worker’s positive behaviors—and 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.

6

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 employee’s 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

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more productive. And not just by giving a filled up appraisal form then giving it back to the

employee just for filling up their comments. I’m 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. It’s 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, let’s 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 thought’s

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

thought’s 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 supervisor’s 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 employee’s 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 employee’s 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, let’s 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. It’s 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 organization’s 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. That’s 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 doesn’t mean to punish him. In fact the employer’s

intention is to make this particular employee to understand of the employer’s 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? Isn’t 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 employer’s 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 employee’s expectation. Let’s 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 company’s

turnover levels.

16

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 manager’s 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) 21

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, 22

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,

23

supervision, 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

24

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

a) Perpose of performance appraisal;

<http://www.une.edu/hr/pdf/performanceevaluation.pdf> 05.5.08

b) Gregorio Bil l ikopf; performance appraisal; 11 August 2006;

<http://www.cnr.berkeley.edu/ucce50/ag-labor/7labor/06.htm>05.5.08

c) "Meeting the challenge of HR Planning with Clarity 6 ";29th January 2007

<http://www.fsn.co.uk/channel_bi_bpm_cpm/wp_meeting_the_challenge_of_hr_plan

ning_with_clarity_six.htm#matching> 05.5.08

d) K Morrell, J Loan-Clarke and A Wilkinson; Unweaving Leaving:The Use of Models

in the Management of Employee Turnover; January 2001;

<http://www.lboro.ac.uk/departments/bs/research/2001-1.pdf> 10.5.08

e) Turnover (employment); <http://en.wikipedia.org/wiki/Turnover_(employment >

10.5.08

f) Dave; Motivational Needs; 29-JAN-2004 <http://landing.netmyne.com/index.jsp?

mode=search&nlia=mcclelland%27s+theory+of+needs> 15.5.08

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