Journal of Strategic Human Resource Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Employee Retention - A Strategic Tool for Organisational Growth and Sustaining Competitiveness


Affiliations
1 Department of Humanities and Social Sciences, JNTUH College of Engineering, Kukatpally, Hyderabad, Andhra Pradesh, India
2 Madanapalle Institute of Technology & Science, Madanapalle, Andhra Pradesh, India
     

   Subscribe/Renew Journal


Earlier research studies indicate that employee retention is a challenging task for the organisations in today's scenario of competitive business environment. Manpower became a powerful tool for the growth of the organisation and sustainability. Proper human resource management initiatives should be adopted by the organisations in order to decrease the employee turnover. The importance and trouble faced by the organisations in attracting the skilled employees and efforts to retain the skilled are the same. This paper explains the importance of employee retention in the growth of the organisation and achieving the competitive advantage over the competing firms.

The retention strategies should be formulated in such a way that the organisations grow with greater efficiency and innovation and achieve long lasting strategic business objectives. When an organisation loses a talented employee there is a huge negative impact on innovation and services provided. The standard of the services provided by the organisation declines which in turn affects the organisation's growth and profitability. The impact of employee turnover affects the other HR functions like manpower planning, recruitment, selection training etc. It is observed from the past studies that when employees are satisfied with the organisation's retention strategies they are more dedicated in doing their jobs and work for the organisation's growth and sustain the advantage of competitiveness over the rivals.


Keywords

Employee Retention, Competitiveness, Employee Turnover, Organisational Growth.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Abbasi, S. M., & Hollman, K. W. (2000). A three component conceptualization of organizational commitment. Human Resource Management Review, 1,89-93.

  • Abelson, M. A., & Baysinger, B. D. (1984). The impact of HRM practices on perceptions of organizational performance. Academy of Management Journal, 39, 949-69.

  • Abelson, M. A., & Baysinger, B. D. (1984). Optimal and Dysfunctional Turnover: Toward an Organizational Level Model. Academy of Management, 9(2), 331-341.

  • Anderson, E. W., & Sullivan, M. W. (1993). The antecedents and consequences of customer satisfaction for firm. Marketing Science Spring, 12(2), 125-143.

  • Blake, R. (2006). To retain or not to retain? Multinational firms and technical labour. Human Resource Management Journal, 5(5), 46-53.

  • Cascio, W. F. (2000). Re-inventing the workplace: How business and employers can both win, Washington, DC: Brookings Institution.

  • Cotton, J. L., & Tuttle, J. M. (1989). Consequences of individuals fit at work: a meta-analysis of person-job, person-organization, person-group and person-supervisor fit. Pers. Psychol. 58(2), 281-342

  • Darmon, R. (1980). The use of person-environment fi t in the selection process. In: G. Ferris (Ed.). Research in Personnel and Human Resources Management, 17.

  • Denton, K., & Corley, K. G. (2002), Organizational Context as a Moderator of Theories on Firm Boundaries for Technology Sourcing, Academy of Management Journal, 44, 271-91.

  • Eskildesen, J. K., & Nussler, M.L. (2000).The managerial drivers of employee satisfaction and loyalty. Total Quality Management, 11(4-6), 581-588

  • Fitz-enz, J. (1997). It's costly to lose good employees. Workforce,76.

  • Glebbeck, A. C., & Bax, E. H. (2004). Turnover: the real bottom line, Public Pers. Manage., 2(3), 333-342.

  • Glebbeek, A. C., &Bax, E. H. (2004). Is high employee turnover really harmful? An empirical test using company records. Academy of Management Journal, 47, 277-286.

  • Hammer, J. (2000). Finding and keeping great employees. Training, 36(4), 118-123.

  • Heyman Associates. (1997). Human resource bundles and manufacturing performance: Organizational logic and fl exible production systems in the world auto industry. Industrial and Labor Relations Review, 48, 197-221.

  • Huselid, M. (1995). The Impact of human resource management practices on turnover, productivity and corporate financial performance. Academy of Management Journal,38(3), 635-672.

  • Leana, C. R., & Van buren III, H. J. (1999).The analysis of employees’ turnover model. Journal of Economics and Management, 5,14-21.

  • Marini, (2000). Accounting for endogeneity when assessing strategy performance: Does entry mode choice affect FDI survival. Management Science, 44, 571-585.

  • Mobley. W. H., Griffeth, R. W., Hand, H. H., & Meglino. B. M. (1979). Review and conceptual analysis of the employee turnover process. Psychological Bulletin, 86(3), 493-522.

  • Mobley, L. (1982). Another look at the relationship between performance and voluntary turnover. Academy of Management Journal, 37(2), 269(30).

  • Opoulos, (2005). Off shoring Goes Complex, but It Pays, The Economic Times Online. Retrieved from economictimes. indiatimes.com/article

  • Parrot, M. (2000). Are Indian BPOs Losing Their Cutting Edge, Business Standard.

  • Pettman, B. O., & Mobley, W. H. (1975).Getting value from exit interviews. Association Management, 52(4), 22.

  • Rapport, O. (2003). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of Occupational Psychol., 63(1), 1-18.

  • Rust, R. T., & Zahorik, A. J. (1993). Customer Satisfaction, Customer retention and market share. Journal of Retailing, 69(2), 193-215.

  • Schervish, P. G., & Terborg, J. (1984). How to broaden your career management program. HR Focus, 76(6), 6.

  • Shaw, J. D., Gupta, N., & Delery, J. E. (2005).Alternative conceptualizations of the relationship between voluntary turnover and organizational performance. Academy of Management Journal, 48, 50-68.

  • Staw, B. M. (1980). The positive research on the employees dynamic turnover model in IT industry of China, Unpublished Master paper, Xi'an Jiaotong University.

  • Strauss, G. (1980). Job satisfaction and turnover intention: The moderating role of positive affect. Journal of Social Psychology, 139(2), 222-232.

  • Terborg. R. J., & Thomas W. L. (1984). A predictive study of organizational turnover rates. Academy of Management Journal, 27(4), 793-810.

  • Trevor, C. O. (2001). Interactions among actual ease-ofmovement determinants and job satisfaction in the prediction of voluntary turnover. Academy of Management Journal, 44, 621-638.

  • Williams, C. R., & Livingstone, L. P. (1994). Another look at the relationship between performance and voluntary turnover. Academy of Management Journal, 37(2), 269-298.


Abstract Views: 894

PDF Views: 2




  • Employee Retention - A Strategic Tool for Organisational Growth and Sustaining Competitiveness

Abstract Views: 894  |  PDF Views: 2

Authors

K. Sandhya
Department of Humanities and Social Sciences, JNTUH College of Engineering, Kukatpally, Hyderabad, Andhra Pradesh, India
D. Pradeep Kumar
Madanapalle Institute of Technology & Science, Madanapalle, Andhra Pradesh, India

Abstract


Earlier research studies indicate that employee retention is a challenging task for the organisations in today's scenario of competitive business environment. Manpower became a powerful tool for the growth of the organisation and sustainability. Proper human resource management initiatives should be adopted by the organisations in order to decrease the employee turnover. The importance and trouble faced by the organisations in attracting the skilled employees and efforts to retain the skilled are the same. This paper explains the importance of employee retention in the growth of the organisation and achieving the competitive advantage over the competing firms.

The retention strategies should be formulated in such a way that the organisations grow with greater efficiency and innovation and achieve long lasting strategic business objectives. When an organisation loses a talented employee there is a huge negative impact on innovation and services provided. The standard of the services provided by the organisation declines which in turn affects the organisation's growth and profitability. The impact of employee turnover affects the other HR functions like manpower planning, recruitment, selection training etc. It is observed from the past studies that when employees are satisfied with the organisation's retention strategies they are more dedicated in doing their jobs and work for the organisation's growth and sustain the advantage of competitiveness over the rivals.


Keywords


Employee Retention, Competitiveness, Employee Turnover, Organisational Growth.

References