Application of Organizational Behavior Concepts - Essay Example

 Application of Organizational Behavior Concepts Introduction The current employee turnover challenge at Healthcare Inc is a massive setback to organizational effectiveness and operation in general. The situation is dire owing to the fact that the turnover rate is particularly high, and the issue threatens the sheer existence and operation of the organization. Available data indicate that roughly half of the turnover was workers in the initial year of their service with the corporation, a figure that represents 20 percent higher compared to the national average. Therefore, Healthcare Inc. approximates that turnover expenses are to the tune of $2.2 million per annum and that falling turnover could have a beneficial effect not just on its outcome, but also the drive of its employees. As a result, it is imperative to underscore the core essence of the company’s turnover problem in order to tackle the problem as a whole. Such a process will involve a number of considerations as to why employee turnover is high in the company and the reasons behind the phenomenon. To kick start the process will be the naming of the reasons for the high turnover at Healthcare Inc. In essence, high turnover emanates from a diversity of factors that affect the working morale and drive of the employees. Several issues in the operation of the organization are responsible for its turnover problems. It is only through the identification of the issues causing turnover that a formidable solution for Healthcare Inc can be developed (Jex, 2002). This paper will identify three issues at the root of the organization’s turnover issues, discuss them and propose a solution for organization. The causes of the high turnover as identified include; Compensation issues, Recruitment and employee selection issues as well as Motivational Issues. Issues at the Root of the Healthcare Inc Turnover Problems Recruitment and Employee Selection Issues Healthcare Inc high turnover is mainly as a result of recruitment and employee selection issues, which have an upper hand in influencing the drive and confidence of workers. Under normal circumstances, recruitment and selection issues are the principal process of admitting new talent into the organization (Smith, 2007). Whenever there is a problem regarding the quality of staff or the nature of the process, the organization is affected in a great way. Recruitment and selection are two related processes that determine the nature of employees the company attracts and retains over and above the way in which the workforce operates in the organization. Whereas recruitment deals with the general hunt for talent, selection involves the particular scrutiny of potential staff for employment considerations. Selection relies so much on recruitment owing to the fact that the employees to be selected emanate from recruitment stage. Issues surrounding the recruitment and selection of staff have a significant implication on the operation of an organization and are leading causes of high turnover. It is evident that Healthcare Inc turnover problems mostly affect new employees in their first year of service; this is a direct result of recruitment and selection issues. Half of the turnover cases involve fresh employees, which imply that the company’s recruitment and selection process is flawed and does not herald required staff in the organization or fails to inculcate organizational values in them. There must be a reason why fresh employees are a huge source of turnover, the organization processes of searching and choosing new employees is not up to date or does not satisfy the threshold of organizational effectiveness. Recruitment along with selection issues are crucial components in an organization’s turnover problems. Motivational Issues High turnover could be as a result of motivational issues because the ability of workers to stay committed to their roles squarely lies with their level of motivation. Therefore, motivation plays a noteworthy function regarding turnover issues and overall organizational operations. Motivation can be described as the aspect of finding a reason, morale or drive to engage in something. It is a fact that motivation is central to high performance, retention and commitment of employees. Motivation and turnover are very much related because employee turnover is a result of low motivation among the employees (Kociatkiewicz & Jemielniak, 2008). Several theories of motivation prevail that underscore the essence of motivation and its significance in the organization. Each employee requires motivation in order to indulge in the various activities, duties, and chores of the organization. A lack of motivation may result in low commitment to work, reduced confidence as well as high turnover. At Healthcare Inc employee turnover has been linked to new employees who incidentally lose their motivation at very early stage in the organization. In as much as recruitment and selection procedures have a role in such a scenario, there is no doubt that lack of motivation is behind the rising employee turnover at Healthcare Inc. Several theories of motivation describe the different motivational needs of employees that require to be met through the process of motivation. When these needs lack they become a source of discomfort among the employees making their commitment to work very low. Compensation Issues Compensation is the essence of work because every employee expects to earn remuneration from their work. The basic component of employment is pay to the effect that issues revolving around payment could spill out of control and affect the moral, commitment, and dedication of employees. As a result, compensation issues are causes of high turnover whereby employees may be disgruntled with low pay and lose their commitment and morale of work. Compensation issues are broad and diverse and may take different shapes in influencing organization operations in general. With regard to high employee turnover, compensation issues may involve low pay, irregular pay or payment conflicts that may reduce the employees drive in tackling organizational tasks (D'Annunzio-Green, 2004). Employees may lose the value of work when there is no direct benefit from it or when their needs and requirements are ignored. In an organization, compensation issues create majority of conflicts between management and employees. Such conflicts include strikes and boycotts, sit in and other protests that hamper organizational effectiveness. However, apart from open revolt of their duties employees may internalize compensation issues that in turn emanate from the perception of exploitation whereby the employees view the organization as exploiting them without proper reward. When employees internalize such perspectives they manifest in the form of low morale resulting in high employee turnover. Compensation issues are at the heart of the current high turnover problems at Healthcare Inc and are a potent source of the escalating predicament. Perhaps fresh employees come to the company with extremely high expectation regarding remuneration but fail to achieve any of them making them lose their motivation. Proposed Solution The proposed solution is based on the clear evaluation of the situation at Healthcare Inc, which indicates that high employee turnover is the main problem affecting the organization and half of the cases involve fresh employees. Three issues have been identified and analyzed with regard to how they contributed to the escalating of turnover in the organization. In order to address the current high employee turnover issues at Healthcare Inc, the corporation must develop a framework based on the three root causes of the turnover problem namely; Recruitment and employee selection issues, Motivational Issues, and Compensation issues. Therefore, the suggested solution for Healthcare Inc’s high turnover predicaments will consider the handling of the root causes of the problem. Primarily, the company must streamline its recruitment and selection process to reduce issues emanating from the two core procedures (Shanks, 2011). To this effect, the organization should ensure that the process of searching and selecting staff is straightforward and that only the best employees are admitted to the company. Furthermore, there should be the mechanism to address any high expectations of the new staff; this will reduce future conflicts regarding the staff expectation over employment. The company should develop a credible induction process that will help retain staff and introduce them to the organizational culture. Subsequently, employee motivation should be given priority in Healthcare Inc to ensure that workers are confident and have morale to continue working for the organization. Such an endeavor will significantly reduce turnover. Proper motivational techniques should be developed that will be applied to boost the morale of the employees. Finally, employee compensation should be given primary importance whereby the company should develop an appropriate remuneration scheme through which all employees are satisfied. Proper remuneration will produce a motivated workforce thus reducing employee turnover. Conclusion In conclusion, Healthcare Inc high turnover predicament is a result of three main issues namely, Compensation issues, Recruitment and employee selection issues as well as Motivational Issues. The company is currently witnessing a high employee turnover with half of the cases being fresh employees. A clear analysis has been done, and a solution suggested that is based on the proper tackling of the three issues. Healthcare Inc should streamline its recruitment and selection process, apply motivation techniques to boost workforce morale and also develop a credible compensation system that will reward the employees for their efforts. The systematic process will create a lasting solution to the current high employee turnover affecting Healthcare Inc. References D'Annunzio-Green, N. (2004). Human Resource Management: International Perspectives in Hospitality and Tourism. Washington: Cengage Learning EMEA. Jex, S. (2002). Organizational Psychology: A Scientist-Practitioner Approach. Washington: John Wiley & Sons. Kociatkiewicz, J., & Jemielniak, D. (2008). Management Practices in High-Tech Environments. London: Idea Group Inc (IGI). Shanks, N. (2011). Introduction to Health Care Management. Washington: Jones & Bartlett Publishers. Smith, G. (2007). 401 Proven Ways to Retain Your Best Employees. New York: CYC Publications. Read More