Improving Organization Retention

Improving Organization Retention

     Retention is a critical element to organizations (Hausknecht, Rodda,  & Howard, 2009). An organization desires to retain employees who have high job performance. At times, work motivation theories are used to aid organizations in their retention plans. Elements such as job satisfaction, occupational stressors, and counterproductive behavior may affect the performance and retention of employees. This paper will examine the problems in JC’s Casino and offer suggestions using work motivation theories and other psychological principles to improve the retention rate.  

Work Motivation Theories

Reinforcement Theory

     Reinforcement theory states that behavior is a result of rewards. The major premise of the reinforcement theory is the law of effect (Spector, 2012). This means that the probability of an increase of a behavior is higher if followed by a reward. Likewise, the probability of a decrease of behavior if followed by a punishment is higher. Rewards are the result of a behavior occurring; therefore, in industrial and organizational psychology, the reward must result from performance (Rue & Byars, 2007). Rewards can be tangible and given by the organization, such as money, or intangible, such as praise. Intangible rewards can also be a product of the behavior itself such as a sense of accomplishment for completing the task. Rewards are an effective method to enhance the job performance of employees. A large component of the reinforcement theory is incentive systems. In incentive systems, an employee is paid for the level of their individual productivity. The principles of the reinforcement theory are used to influence the employee’s behavior such as absence and tardiness. In order to effectively work in an organization, all employees should be rewarded on their performance. Employees should not be rewarded the same. Also, the employee should be told what to do in order to be reinforced, the employee should be told what they are doing wrong, and reprimands should not be done in front of others (Rue & Byars, 2007). 

Reinforcement theory at JC’s Casino. At JC’s Casino, the housekeepers are not being rewarded on their performance. The result of this is tardiness, absence, poor performance, and ultimately, turnover. There should be an incentive system set up for the housekeepers to reward them for performance. Reinforcements can consist of monetary raises, gift cards, and services offered by the casino. By rewarding the housekeepers, they will become to feel appreciated and valued as employees. In turn, this will decrease absence, tardiness, and turnover. 

Justice Theory

     Justice theories focus on fair treatment by the organization (Spector, 2012). Fair treatment is believed to be the motivator in organizational relationships. The Equity Theory is the most common justice theory. The Equity Theory is based on the assumption that people want to be treated fairly in relationships and are motivated to reach such fairness. Inequity, the perception that one’s inputs and outcomes to be less than the inputs and outcomes of other employees, is the result of the Equity Theory. The feeling of inequity can cause a divide in an organization. In order to reduce inequity, an employee may do several things to alleviate the feeling. For example, the employee may increase inputs or quit. 

Justice Theory at JC's Casino. The housekeepers as well as the floor dealers are feeling inequity. The housekeepers are pushed to work more without the recognition of what they have done. The inputs of each housekeeper should have an equal outcome. This will have the ones who are working to standard and keeping with attendance policy to continue to do as such. The housekeepers who do not have a good job performance and attendance record should have outcomes equal as such. Housekeepers will be more willing to perform when the outcomes are equal to the inputs. Otherwise, the housekeepers will continue to be resentful towards the job. The floor dealers are unhappy with the pit boss. According to the exit interviews, the dealers feel that he is toxic, overbearing, evil, and incompetent. The HR director needs to confront the pit boss, even though he is the owner’s step son. The dealers will not feel as though they are valued employees as long as he is allowed to behave this way. The compensation seems to be good since it is better than the competition. The attitude of the pit boss is affecting the retention of dealers. 

Occupational Stressors and Alleviations

            A job stressor is a condition or situation at work that requires a response from the employee (Spector, 2012). Examples of possible job stressors include being reprimanded,          lack of time, and hearing of the possibility of firing. The most common job stressors are conflicts and heavy workloads. Role ambiguity is where employees are uncertain of job functions and responsibilities. This can be caused by the failure of supervisors to provide guidelines and directions for the job. Role conflict is when employees experience incompatible demands at work or between work and home. These demands can be receiving incompatible directions at work or when the demands of family interfere with work. Workloads can be a job stressor depending on the amount of work or the difficulty of work. Other stressors can be social such as interpersonal conflicts at work, organizational politics (where co-workers and supervisors put own interests above the organization), or control (the extent employees make decisions about work). 

Alleviating Stressors at JC's Casino. The main stressor of the housekeeping staff is the lack of reliable staffing. The lack of staffing is putting a strain on other departments, mainly the administrative department who have been filling in as housekeepers. More housekeeping staff should be hired and trained. Reinforcement for job performance should be established to retain housekeepers and reduce the workload. The floor dealers also have job stress in the form of social stress. There is an obvious conflict between the pit boss and the floor dealers. This conflict should be reduced in order for the floor to run smoothly and to reduce turnover. 

Job Satisfaction and its Effect on Retention

     Job satisfaction is a person’s attitude towards his or her job. Turnover has been connected to job satisfaction; dissatisfied employees are more likely to quit. There are five major components to job satisfaction. These include attitude toward work group, general working conditions, attitude towards organization, monetary benefits, and attitude toward supervision (Rue & Byars, 2007). An individual’s attitude toward the work itself and life in general may also impact job satisfaction. It is a common belief that a satisfied worker is a happy worker. However, research disproves that the belief is always accurate (Rue & Byars, 2007). There is moderate research that performance causes satisfaction. This research concludes that rewards are more of a cause of satisfaction than performance and that rewards based on current performance can result in subsequent performance. While research does not completely prove that a satisfied employee is a happy employee, it does prove that an employee who like the job, supervisors, and other employment factors, are likely to be more loyal and dedicated. If an employee does not like the job, supervisor, or other employment factors, then they may quit or become disgruntled. This may lead to absence, tardiness, or disruptiveness at work. 

Job satisfaction at JC's Casino. The employees at JC’s Casino have very little job satisfaction. The housekeepers need training, more staff, and reinforcement for performance. This should reduce the absence and turnover. The issue of the pit boss and comments made in exit interviews has not been adequately addressed. The HR director is afraid to confront the owner about his step son even though the step son is the primary concern on the floor. The HR director needs to have adequate training for employees and reinforcement plans in effect. The HR director should fully understand the importance of retention and the full responsibilities of each job. 

Counterproductive Behavior

     Counterproductive behavior is meant to bring or intended to bring harm to an organization; examples of this behavior are verbal, psychological and physical violence, unsafe work practices, alcohol and drug abuse, theft, and destruction of property (Yang, 2008). Counterproductive behaviors may also include absence and tardiness. These behaviors are detrimental to the organization. Employees who have quit usually have exhibited these behaviors prior to quitting. 

Counterproductive behavior at JC's Casino. There are numerous counterproductive behaviors at JC’s Casino. The housekeepers are tardy and absent frequently. These behaviors affect not only the housekeeping department but other departments as well. The administrative department is having to clean rooms to compensate for the fact the housekeepers are not. The hotel changed check in policies, thus causing the need for a luggage room and luggage room attendant. Housekeeping needs training, reinforcements, and less of a workload. The pit boss is creating a hostile work environment in the way he treats the floor dealers. The pit boss needs training in how to perform his job and proper etiquette for communicating with subordinates. 

Conclusion

      Work motivation theories can help organizations in managing the job performance of employees. Job satisfaction, reinforcements, equity, and stress alleviation can help organizations in managing retention. JC’s Casino presented with problems with the floor dealers and housekeeping departments. Using work motivation theories and industrial and organizational psychological principles, suggestions were made to help the organization maintain employee job performance and retention.

References

Hausknecht, J. P., Rodda, J., & Howard, M. J. (2009). Targeted employee retention: Performance - based and job - related differences in reported reasons for staying. Human Resource Management, 48(2), 269-288.

Rue, L. W., & Byars, L. L. (2007). Management: Skills and application (12th ed.). New York, NY: McGraw - Hill.

Spector, P. E. (2012). Industrial and organizational psychology: Research and practice (6th ed.). Hoboken, NJ: Wiley.

Yang, J. (2008). Can't serve customers right? An indirect effect of co-worker's counterproductive behavior in the service environment. Journal of Occupational and Organzational Psychology, 81(1), 29-46. doi:10.1348/096317907x203742

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