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Employee Retention in the fast Food Industry - Assignment Example

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This chapter of the study presents an introduction together with background information on the contemporary study’s nature and its purpose and objectives. It is divided into four, background of the study; problem statement, purpose, objectives, significance of the study and how the study is organized…
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Employee Retention in the fast Food Industry

According to the paper, presently, variations in trade agreements, technology, global economics and any other such factors are directly affecting employer/employee relationships. For quite some time loyalty has been the basis for that relationship. Losing very talented employees may be very disadvantageous to the future success of the company. Outstanding employees of a company may leave because they are underpaid, dissatisfied or unmotivated, therefore, trying to retain them is likely to present many challenges to the organization. Such employees may demand higher wages; they may fail to comply with the directions of managers, fail to comply with practices of the organization, or not interact well with their colleagues. The organization’s desire to retain such employees may be further complicated by information asymmetry because lack of enough information may not help the organization to differentiate productive employees from unproductive ones. Workers frequently take credit for other employees’ success and deflect failures to others. Thus, employees may be punished or awarded for outcomes that they are not part of. Inadequate information regarding performance of employees may result in adverse selection, outstanding ones may leave, and abysmal ones may stay. The situation is likely to occur when exceptional workers are not rewarded and both productive and nonproductive ending up with the same or almost the same compensation package. The problem of keeping outstanding workers in the company is further complicated due to bounded rationality. This results due to information asymmetry because workers do not know the information to provide and the managers do not know what information to ask from their employees. ... Read More
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