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2.1 Introduction

Organizations
achieve sustained high performance through the systems of work they adopt and
this entails improving performance through the people they have employed and
also through the development and implementation of excellent performance
culture. Today’s organizations must consider how human resources function can
create value to the organization. If they want to retain them and this means
clearly knowing the human resource practices which have the greatest contribution
to employee retention.

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This
chapter gave the HRM practices and the various theories together with
a conceptual framework that seeks to explain their diverse links to employee
retention. The various related literature on HRM discipline their influence on
employee retention together with related past studies done and their various
gaps are critically analyzed.

 2.2 Theoretical Framework

The
study was based on the expectancy theory, theory X and Y and Maslow’s Hierarchy
of needs theory.

2.2.1 Expectancy Theory

This
theory is built on the concept that the commitment of employees in an
organization should be equivalent to their expectations which they need to
receive in turn. Commission compensation structures leverage this theory by
allowing employees to earn as much money as they desire, completely based on
their job performance (Ingersoll, 2001). Making sure that employees always
expect future pay raises and potential job promotions can keep them working hard
to achieve personal goals.

According
to Gilbert (1978), if employees expect little compensation and no growth
opportunities in return for their level of commitment
usually becomes too low and this makes them to start looking for new employers
who can meet their expectations hence leading to high employee turnover.
Expectancy is the
probability that a particular action will lead to a required outcome. If the
employee has a particular goal, some behaviour has to be produced to accomplish
that goal. In any organization employees usually gauges the various behaviours
and after this process they usually select those behaviours that are desirable
to accomplish their goals (Vroom, 2009). Hence employers should always their
level best to create an enabling environment which will change the employees’
perception and also boost the expectancy level and this can be achieved through
effective communication and efficient rewarding systems. Therefore this theory
emphasizes on the relationship which exists between the organization goals and the
employee expectations and it also put into consideration on the difference
between employee motivations in the place of work which has a great
relationship with employee turnover. The theory supports the study that
favourable HRM discipline motivate employees and therefore perform better.
Expectancy theory argues that when employees expect better rewards they are
excited to work and prefer staying with the employer longer hence low labour
turnover.

2.2.2.
Theory X and Theory Y

Theory
X and Theory Y represent two opposing ends of the motivation spectrum. Theory X
is built on the principles that employees are usually motivated by either
internal or external factors for them work while theory Y works on the
principle that employees usually work due internal motivation hence they strive
to achieve goals through their skills and experience(Ruhland, 2001). Neither
Theory X nor Theory Y is inherently better than the other.

Rather,
the appropriate theory relies on work arrangement and the type of employees an
organization is working with. Applying the wrong theory in your workplace can
disappoint, confuse and aggravate employees, leading to increased employee
turnover (Abelson et al, 1984). For those employees who are self-motivated and
who usually work to improve their experience do not necessarily sticky on the
work arrangement but instead they work under minimal supervision. This theory
supports the idea that favourable internal and external human resource
management practices motivate employees and make them perform their duties
diligently and improve the performance of the organization.

2.2.3. Hierarchy of Needs Theory

Abraham
Maslow’s hierarchy (1943) of needs theory places employees’ needs into five
progressive categories, whereby basic needs are given the first priority and
self-actualizations are given the last priority in a descending order. Maslow
argued that once an employee has attained any one given need they become so
motivated and committed to work in order to achieve the next need hence leading
to achieving of the organization’s goal. Failure to
meet employees’ needs at any
level in the hierarchy can create a lack of fulfilment in employees’
professional lives, causing them to eventually try to fulfil these needs on
their own, possibly by finding a new employer who provides better
opportunities. Needs change over time, and each need generally has to be
fulfilled on an ongoing basis. However, a satisfied need will not be
manifested. That is, a person who has fulfilled his or her need for self-esteem
will not act in a way to draw attention to him or herself. Hence, such a person
is free to pursue higher teamwork goals (Maslow, 1970).

Maslow’s
widely known hierarchy of needs theory argues that our needs form a five
level hierarchy, ranging from physiological to self -actualization needs.
Maslow’s hierarchy of needs comprises physiological needs, safety needs,
belongingness, esteem and self-actualization. This theory has not been fully
supported with respect to the specific principles it is built on. (Basset-Jones,
2005). For those who are anti this theory argues that theory didn’t
specifically put it clear on ho one can describe the behaviour of individuals
since human behaviour is dynamic. Antomioni, D. (1999), in their survey
conducted cross sectional among working population in Los Angeles, posited “background
factors, attitudes and expectations affects worker’s needs, expectations
and situation assessment”.

According
to Gordon, G. (1965), needs theory has faced three major critics; one there is
no enough empirical data to support the conclusion theory, secondly the theory
assumes that all employees are similar and lastly some argue the theory is not
really motivation theory but rather it job satisfaction theory.

This
theory supports the study since HRM discipline is the pillars to meeting
employee needs at any level of the hierarchy. The employer should always strive
to meet the needs to motivate the employees and ensure they deliver and the
firm performs well.

2.3
Empirical Review

Low employee turnover strictly depends on
employee hiring process which entails recruitment, selection & placement. This predetermines
the effectiveness of retention strategy. For employee retention to be
successful, it has to be linked positively to the processes and practices
of recruitment and the
sources from which job candidates are recruited. Employee’s propensity to leave
the organization depends on the source from which they were hired. According to
Raub et al (2006) the two
types of recruitment include the “traditional” approach which suggests that the
major goal of recruitment is entice an optimum number to the organization which
is recruiting. In the traditional approach, there is provision of incomplete
information about the job vacancy or the organization hence this can’t allow
the organization to achieve it goals.

2.3.1
Recruitment and employee retention

The
recruitment process has evolved from the traditional approach to the realistic
or modern approach whereby recruiters provide balanced and honest information
about both the negative and positive aspects of the job and the organization is
undertaken. The traditional approach was criticized by researchers such as Raub
& Streit (2006) who hypothesized that its benefits in terms of attracting a
large number of applicants can superseded .with the negative effects in
choosing and retaining those applicants. 

According
to Raub & Streit (2006), on their study on the process of recruitment and
how it determines the kind of employees an organization gets, an unrealistic
provision of information in relation to the job vacancy advertised or the
organization the higher the chances for the employee to quit the organization
once they learn the reality.

The
resultant effect is that new recruits will be frustrated, dissatisfied, under
performance hence leading to high turnover rates. Similarly, Lee (2006)
proposes that there two major recruitment factors that affect employee turnover
and they include “realism” with which the candidate comes into the job and the
job-fit, i.e. the extent to which employees recognizes that his or her
personality is well recognized by the institution. Lee (2006) contends
that if various recruitment sources can be found to have different realism and job-fit, and these in turn
affect turnover, then retention
strategies can be crafted around these recruitment techniques. Employee
retention should be linked with an effective recruitment and selection process.
HR practitioners and recruitment agencies, while recruiting job candidates for
their organizations, should consider job previews as an integral part of
the recruitment process. Job
previews, when honestly conducted, have the potential to lower the high rate of
employee turnover and this will be achieved if firsthand hand information is
shared to the recruits. 

Proper
employee recruiting systems accompanied with comprehensive motivating variables
leads to creation effective and efficient retention strategy which brings about
reduced employee turnover (Olorunjuwon, 2008). It is equally important for the
individual job candidate to have a fair chance at deciding whether they can fit
in the company or not. Regular job previews gives the company a chance to hire
new employees who have long sighted in relation to the company’s operations, providing
the candidate with enough information to make a decision about whether it is
the right workplace for him or her.

2.3.2
Training and Employee Retention

According
to Armstrong (2008) companies can apply these different methods of training and
development to any number of aspects that assures skills needed for various
positions are instilled.

Trainings
conducted should be aim at improving both specific and general skills. Some of
the trainings include clerical trainings, technical trainings, communication,
career development, supervisory development, organization development and
management development. Rees (2006) describes training as a learning experience
that improves job performance. This involves changing skills, knowledge,
attitudes or behaviour. Trainings should be based on current aspects and
focuses on individuals’ current jobs requirements which enable them to perform
their jobs in an effective and efficient manner. Training needs need to be
determined are, chores to be completed to attain its goals, necessary need
behaviours for the same task and finally what deficiencies if any employee have
in skills, knowledge or abilities needed to exhibit the required behaviours.
Various signals can warn a manager when training may be necessary like decline
in job performance through production decrease, lower quality, more accidents
and higher rejection rates. Porter (2008) highlights that training is learning
directly towards job performance and can modify knowledge,
skills and attitudes.

Training
focuses upon implementation – doing things to the required standards,
improvement – doing things to a new standard and innovation – doing new things.
To succeed, training must be the appropriate solution to the problem, have the
support of the management and the individual, meet correctly identified needs
and carried out in an environment favourable to learning. Chronological
approach to training involves;- examining or identifying the training needs at
the organizational, team and individual /levels, planning the training to meet
the needs, implementing the training plan effectively and reviewing/assessing
the results of the training.

Capelli
(2001) depicted that training methods can be classified into two and they
include: on the job training and off the job training. On the job training job
rotation, apprenticeship (combining classroom instruction) and working
alongside a seasoned veteran and internship (structured or unstructured) while
on the other hand off the job training entails on classroom lectures,
multimedia learning e.g. videos and DVDs, simulations (learning the job
practically) and vestibule training through use of similar tool that will be in
used in actual work but in a simulated work environment. Armstrong (2008) gives
the role of training as an endeavour to ensure trainees acquire new

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