Data Bases • Custom Term Papers • Free Term Papers • Free Research Papers • Free Essays • Free Book Reports • Plagiarism? Links • Top 100 Term Paper Sites • Top 25 Essay Sites • Top 50 Essay Sites • Search 97,000 Papers @ DirectEssays.com • Search 101,000 Papers @ ExampleEssays.com • Search 90,000 Papers @ MegaEssays.com Free Essays • Term Paper Sites • Chuck III's Free Essays • Free College Essays • TermPaperSites.com • My Term Papers • Get Free Essays • Essay World • Planet Papers	Search Lots of Essays Back to Subjects - Business Is Money the only way to retain staff Is Money the only way to retain staff Is Money the only way to retain staff? Doward (Guardian 2001) states “Sotheby’s having registered $178m of losses this year are spending $40m in a bid to retain key Heads of staff”. It might pay Sotheby’s to understand McGregor’s Theories X, Y and Schein`s Social theory as essential when looking for ways to motivate and retain staff. Theory X used financial rewards and punishments for untrustworthy employees involving company policy. Theory Y sees staff needing “care, independence, self-development and creative work, for company success.”(Cooper`1998). Schein`s social interaction helped staff “to obtain a sense of identity and belonging, wanting to be seen as meeting work expectations not merely receiving financial rewards”. Theory X relates more to Taylorism, whilst Theory Y/Social ideas follow Maslow`s idea of Self-Actualisation. Holden(1997)states “ HR Manager’s must be able to forecast, plan, organise, monitor, motivate and control effectively”. Jane Wibberley (Senior Personnel Manager Marks & Spencer Southampton) believed in a mixture of Reward Management, Work Appraisal, Management Development and Security. Today’s Human Resource Manager will need to obtain commitment and recognition whilst offering reward and re-enforcement using recognised Employment regulations. Kizer`s (1987) Executive Stress Alleviators (e.g. Wellness Programmes)must be observed for commitment purposes. As to how managers retain key staff, local interviews from Marks&Spencer, Paris, Smith&Randall and Southampton Institute will reinforce that Hard HRM financial reward Practices are not the only way to keep key staff. Taylor`s rational-economic needs initiated the debate as to financial rewards being the sole motivator for staff along with Fordism. Contrary to this Maslow looked to Human requirement of interesting work being at the top of Hierarchical Needs Pyramid (i.e. Self Actualisation) with pay at the lowest. Bennett (1981) looked at motivation and commitment “as a mixture of Economic rewards, intrinsic satisfaction and social needs”, which Rollinson(1998) stressed “should be ongoing practices”. Makin(1996) looked beyond financial payments whilst Rose and Edmund Cadbury believed payment incentive schemes “eliminated judgement and initiative”(Statt`1994) now so vital to HRM. Mullins(1999) states, “Managers must provide challenging, creative work, unblocking workers growth needs, allowing sufficient opportunity for key workers to have more opportunities to satisfy existence and relatedness needs”, (e.g. promotion). Alderfer supported this, whilst Locke/Hertzberg looked at job enrichment. Adams(1995) believed Managers should ensure “equitable fairness amongst staff in payment and treatment as underpaid, undervalued staff have less commitment”. The majority of these studies (e.g. Hawthorne Plants 1920/30`s) involved manual staff so there relevance in retaining Executive staff is questionable. Richard Smith (Senior Partner Paris, Smith and Randall) stated “monetary incentives being vital for Law firms to retain the best employees.” He used Cafeteria type fringe benefits of free healthcare, car parking and use of company football box. With “Paris`s” negligible turnover rate his business attracts Taylorist practitioners. However, he acknowledged the importance of regular Appraisals. Maslow`s ideas are vital within most organisations using Intrinsic Motivators alongside Extrinsic ones. Senior Personnel Manager (Southampton Institute) Claire Elms believed “Extrinsic rewards were her initial motivator, now overtaken by good working conditions, flexible hours, equality and security.” The Institute uses standard pay methods of nationally negotiated levels. She re-iterated “ for key Executive staff there were ideas of Performance Related Pay being discussed.” “All Institute Staff were key to the organisation and aside from the IT department there were no unusual staff turnover levels, with no normal Exit reasons.” For staff commitment, extensive internal training programmes were available at IPD/Degree/PHD level as also at “Paris”. Marks & Spencer used internal training mechanisms. Such Investment in People practices as Management Charter Initiatives(MCI)/Quality Circles develop managers commitment. Claire Elms stated “ manager`s must ensure active Appraisal, Trust, Delegation, Teamwork and Self Development with mentoring/shadowing for inexperienced staff”. Her best experience in four years was attending Senior Executive Institute meetings. Barlow (1989) states “appraisal serves to make rational, simple, static a relationship between managers and employees, being ambitious, complex and dynamic”. Gold(1999) believes Managers must work under pressure “providing rationality, efficiency and control in companies with increased threats of competition and uncertainty”. For HRM managers then 360-degree appraisal plays a large part in worker retention. Walton (1985) believes “The manager must ensure a move towards a workforce strategy based on commitment, not just rigid appraisal control systems that can be dysfunctional”. Managers utilising control methods must try to obtain more out of commitment procedures, realizing mere obedience by employees rarely increase commitment. Harper (1983) felt the term appraisal made staff too defensive, as they should be free to develop. Bandura (1977) states,“ favourable self appraisals give rise to rewarding self reactions” helping development and motivation. Problems with appraisal only occur where negative judgements are made as Margerison (1976) states,“reaction and resistance set in”. Organisations using complex appraisal techniques must challenge rigid beliefs that follow them using individually tailored methods to satisfy demand. The right environment, trust and confidentiality are essential for commitment. However, Legg (1991) believed, “performance appraisal was more valid to manual peripheral workers and that Executive staff demanded a more systematic performance appraisal”. Management by Objectives failed to obtain commitment as Levinson (1970) states “being self defeating, using reward and punishment psychology, pressurising workers without there being any alternatives”. Despite the view, Performance Management Systems (PMS) are Extrinsically reward based; Intrinsic rewards such, as appraisal are vital. PMS must target personnel development and achievement. Walter (1995) views PMS as connecting company strategy requirements to workers needs, furnishing commitment. PMS have a direct relationship through all departments involving aims, reasons for success and in measuring workers performance. PMS are used at Barclays Mortgage Services in Leeds with 800 workers individual requirements consolidated into one strategic teamwork policy. In designing a management development plan, the managers must consult and involve lower managers for full commitment. The manager may use informal, integrated or formalised approaches or as Kast & Rosenweig (1985) prefer an Open System Approach. Gold (1999) believes “the manager’s goal lies in the business strategy, translated into sector goals, departmental goals, managerial goals and team goals”. PMS enables key employees to measure performance with development needs whilst providing feedback and review. PricewaterhouseCoopers use Performance Development Centres using Management Charter Initiatives to educate Executives towards company plans enabling organisational objectives to be met. Standard Life use a Contribution Management method to see how best individuals can contribute to the company aims. Both Appraisal and PMS bring the employees and firm together ensuring efficient effective communication between managers and staff, again helping staff retention. PMS/Appraisal give more faith to workers, which should lead to lower staff turnover. Jane Wibberley (M&S) stated “M&S still have a high turnover of Retail Staff Advisors, despite using Appraisal methods”. However, she believed this problem was only regional and that intrinsic appraisal, encouragement and reassurance motivators were still vital in retaining and recruiting new staff. Reward Management is vital to the Managerial/Employee relationship with ideas of New Pay creating a 21st` Century Taylorist model. Beer (1984) sees “the design and management of Reward Management constituting one of the most difficult tasks for the general manager”. Richard Smith (“Paris”) stated, “The manager must co-ordinate a fair Reward Management package towards staff avoiding tension and conflict.” Being a Partner, he shares annual profits whilst Associates take a share of excess targets. All firms /organisations visited believed the HRM cycle link between performance, rewards and development vital. Managers must recognise economic and social factors affect the reward structure. Richard Smith pointed to 1980/90`s recessions where “Paris” offered only negligible rewards. The manager must ensure the Reward Structure ties in with the Company objectives, employees needs, with realistically attainable rewards (as stressed by Vroom`s Valence Expectancy theory) or else frustration /de-motivation occurs. Today`s economic culture dictates many Blue Chip (e.g. Financial Sector) firms are moving away from Performance Related Pay (e.g. Scottish Widows and Standard Life). They believe key staff remains more committed by standard salaries and bonus schemes. Marks & Spencer recognise Reward Management objectives for attracting and retaining staff, whilst standardising and improving staff levels of performance. They use New Pay ideals of; Bonus, Benefits, Team Bonus, Profit Sharing, Discount Share ownership. Jane Wibberley (M&S) believed the younger workers were more committed by rewards over intrinsic needs whilst she with 18 years service looked to security, teamwork, social needs and being close to home. Logica offer employee share options, whilst Kimberely Clarke value staff so much they have given all employees free shares in a bid for total commitment”.(Walsh 1997). The Manager must recognise Reward Management aims can only be achieved through agreed budgets. M&S use different pay/reward structures for staff. Jane Wibberley(M&S) pointed to “ Sales Advisors being committed through; Christmas bonuses, discounts, profit sharing and discounted share purchasing.” With Marks & Spencer shares increasing 40% since June 2001 many staff have made financial gains leading to real motivation /commitment. Managers must externally monitor their firms pay structures in line with competitors, whilst internally ensuring equitable pay levels to sustain commitment and staff retention. Reward Incentive Schemes tie pay to performance, meriting past outstanding past performance. Gold (1999) states “Through North America top management pay is increasingly linked to the achievement of business objectives”. Managers should observe that Reward Management practices are controlled by ideas involving balance of power between available staff and management. Gold (1999) states, “the reward option for key staff is contingent upon perceived reconfigured traditional external and internal circumstances”. Effective Managers are in control, flexible and decisive realising that key staffs have different extrinsic/intrinsic needs involving self-actualisation. City Bank has abandoned Promotion incentives for Senior Management with Performance rewards. Branch manager’s salaries are tied to leadership quality and the ability to exceed company customer service expectations. Prickett (1998) states “Ealing Hospital (NHS Trust 1998) significantly cut nurse turnover by initiating intrinsic plans linking nurses pay and promotion to individual development”. Advocates of new HRM work culture look to Team Work, Just In Time and Total Quality Management as vital management policies. Long (1997) believes senior employees view TQM “ as a way to increase organisational performance, through improving employee motivation, whilst promoting greater co-operation amongst employees enabling a clear business understanding”. Teamwork is essential,“ with Sports retailer “Fat Face” using outdoor management development weekends in the New Forrest to build commitment.”(A.Gracie, Times 2001). Management Action Learning is vital to re-educate managers using teamwork techniques, helping to sustain commitment. The Manager must realise pushing too hard can discourage and frustrate creating stress, which must be recognised and eliminated for full commitment. Southampton Institute use a stress management company “RIOMED” who offer annual stress health checks for departments. Cooper (1998) points to “stress in the workplace as the Black Plague of the 20th` Century leading to devastating tolls on productivity and high staff turnover”. Kizer(1987) looks to USA type Wellness programmes (used by Microsoft/ New York police) or onsite health complexes as at Pricewaterhousecoopers (London Wall Branch). Flexible hours as used by Claire Elms(Southampton Institute) relieve executive pressure. Managers only build winning teams by motivation trust and mutual respect. Gold (1999) states “ Many managers say how incredible it is what people do if they feel valuable in the organisation”. The manager must initiate effective intrinsic and extrinsic programmes for staff retention. In Executive life, monetary incentives should not be underestimated as Hammond (1988) states, “ they buy the goods and services to satisfy other needs”. In the fast lane of Executive life, individual’s success is often judged in monetary terms. Motivational ideas play a large part in commitment and managers must recognise this whilst implementing successful practical strategies. Despite conventional theory that intrinsic motivation increased Hawthorne plant output, Smith (1992) states “ that money increased worker commitment/output as the plant pay structure was altered before the experiment.” Jameson (Times 2001) states “Poor Managerial pay, practices and low morale have lead to a mass exodus of key Railtrack staff”. Understanding theory helps managers attract and retain valuable staff. Successful managers will develop a psychological contract with key staff to understand employee’s needs in relation to company policy. With Extrinsic/Intrinsic factors successfully combined, then according to Tyson (1996) “increased performance will result in greater employment stability, being a win win situation for employees and employers”. Bibliography: Bibliography BURNES, B: Managing Change 2nd ed (1996) Pitman Publishing, London. BLYTON & TURNBULL: Reassessing HRM (1992) SAGE BRADY, T. AND LIFF, S: Monitoring New Technology and Employment Manpower Services Commission, (1983) Sheffield, England. BRATTON, J & GOLD, J: HRM – Theory and practice 2nd ed (1999) MacMillan Business COOPER,C.L : Organisational Stress 1st`ed (2001) Thousand Oaks.Sage. COOPER,C.L, ARNOLD.J ,ROBERTSON,T: Work Psychology 3rd`ed (1998) Pitman HARRISON & Rosemary: Employee Development (1997) IPM LEGGE, K: Human Resource Management Rhetorics and Realities (1995) MacMillan MAKIN, COOPER AND COX: Organisational and Psychological Contract (1996) 1st`ed British Psychological Contract. MENDENHALL, M & ODDOU, G: Readings and Cases in International HRM 2000 South-Western Publications MULLINS: Management and Organisational Behaviour 5th`ed (1999) Pitman NOON, M & BLYTON, P: The Realities of Work 1st ed (1997) Macmillan Press Ltd, London. REID, MA & BARRINGTON, H: Training Interventions 5th ed (1997) IPM ROLLINSON: Organisational Behaviour and Analysis 5th`ed (1998) Addison- Welley SMITH, M: Analyzing Organisational Behaviour 2nd ed (1992) MacMillan STOREY, J : Human Resource Management – A Critical Text (1995) Routledge SPARROW & MARCHINGTON: HRM: The New Agenda (1998) F.T. STATT, D,A: Psychology and the World of Work 1st`ed (1994) MacMillan SUTHERLAND, V: Strategic Stress Management 1st`ed (2000) MacMillan TORRINGTON, D: International HRM (1994) Prentice Hall TORRINGTON, D & HALL, H: Personnel Management: HRM in Action 4th ed (1998) Prentice Hall JOURNALS BROWELL, S : Successful Staff Retention in a Week 2001 Institute of Management,Hodder and Stoughton. EVANS, A : Staff Recruitment and Retention Strategies For Effective Action. 2001 Oxford, Chandos MARKET TRACKING INTERNATIONAL : Positive Approaches to Staff Retention. 2000 London Datamonitor. VIDEO Working In Retail: TEAM TALK BBC 2 (21/11/1999)Library ID:5391717 INTERNET Sotheby`s in $40m bid to keep key Staff. 21/112001 James Doward (Deputy Editor Observer). www.Guardian.co.uk/archive/article/0,42734189139,00,html How to Win staff and Keep them.19/11/2001.Sarah Gracie www.thetimes.co.uk/article/0,2001390011-2001394400,00html Exodus of Key Railtrack Employees.26/11/2001.Angela Jameson www.thetimes.co.uk/article/5-2001544875,00html Interviews - Conducted RICHARD SMITH, Senior Partner: Paris, Smith and Randall, Southampton: Interview date: (21/11/2001) Contact Details: 1 LONDON ROAD SOUTHAMPTON S015 2SB TELEPHONE:023 8048 2482 JANE WIBBERLEY, Senior Personnel Manager: Marks & Spencer, Southampton: Interview date: (21/11/2001) Contact Details: WESTQUAY, 23 HARBOUR PARADE, SOUTHAMPTON, SO15 1QB. TELEPHONE: 023 8022 9435 CLAIRE ELMS, SENIOR Personnel Manager: Southampton Institute, Southampton: Interview date: (21/11/2001) Contact Details: SOUTHAMPTON INSTITUE PERSONEL OFFICE(ROOM A 228) EAST PARK TERRACE SOUTHAMPTON SO14OYN TELEHONE:023 80 319 647 Word Count: 2008
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