978-1260079173 Chapter 11

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Fundamentals of Human Resource Management, 8e Instructor’s Manual

Chapter 11

Separating and Retaining Employees

This chapter explores the dual challenges of separating and retaining employees. It begins by

distinguishing between involuntary and voluntary turnover, describing how each affects the

organization. Next, it explores the separation process, including ways to manage this process

fairly. Finally, the chapter discusses measures the organization can take to encourage employees

to stay.

Chapter Outline

Managing Voluntary and Involuntary Turnover

• Involuntary turnover occurs when the organization requires employees to leave, often

when they would prefer to stay.

• Voluntary turnover occurs when employees initiate the turnover, often when the

organization would prefer to keep them.

• Employee discipline should not result in wrongful discharge, such as a termination that

violates an implied contract or public policy.

Employee Separation

• Discipline should follow principles of the hot-stove rule, meaning discipline should give

warning and have consequences that are consistent, objective, and immediate.

• A system that can meet these requirements is progressive discipline, in which rules are

established and communicated, and increasingly severe consequences follow each

violation of the rules.

• Organizations may also resolve problems through alternative dispute resolution.

Employee Engagement

• Circumstances involving the nature of a job, supervisors and co-workers, pay levels, or

employee’s own disposition may produce job dissatisfaction. When employees become

dissatisfied, they may engage in job withdrawal.

Job Satisfaction

• To prevent job withdrawal, organizations need to promote job satisfaction, which is

related to a person’s values and based on perception.

Learning Objectives

LO 11-1: Distinguish between involuntary and voluntary turnover, and describe their effects on

an organization.

LO 11-2: Discuss how employees determine whether the organization treats them fairly.

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LO 11-3: Identify legal requirements for employee discipline.

LO 11-4: Summarize ways in which organizations can discipline employees fairly.

LO 11-5: Explain how job dissatisfaction affects employee behavior.

LO 11-6: Describe how organizations contribute to employees’ job satisfaction and retain key

employees.

Society for Human Resource Management Body of Competency &

Knowledge

This chapter contains content, which may be identified within the following content areas:

• Talent Acquisition & Retention

• Employee Engagement

• Learning & Development

• Workforce Management

• Employee Relations

• Risk Management

• Business & HR Strategy

Human Resource Certification Institute’s A Guide to the HR Body

of Knowledge

This chapter contains content, which may be identified within the following content areas:

• Workforce Planning and Employment

• Employee and Labor Relations

• Risk Management

Fundamentals of Human Resource Management, 8e Instructor’s Manual

Question Guidance to Vignettes and Discussion Questions

HR How To

Handling Rude Behavior

1. Suppose a shift leader in a warehouse shouts angrily at employees and calls them names

when he is displeased with performance. Occasionally, he throws a box or tape dispenser.

What would be the likely consequences of management ignoring this behavior? What

would be the likely consequences of management carrying out a discipline process?

2. Suppose you are the HR manager at the company where this shift leader works. Would

you advise management to launch disciplinary action? Why or why not?

HRM Social

Firing an Employee for Social-Media Use

1. Suppose a company’s employee handbook says, “We welcome the free flow of ideas, no

matter how controversial. Our employees express themselves freely on our employee

networking site.” Then an employee posts an angry, racist rant. What problem could this

company encounter if it fires the angry employee and the employee claims a wrongful

discharge?

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2. How much social-media use at work would you define as “too much”? Why?

Did You Know?

Opioid Abuse Is a Problem for Workers and Employers

1. A manager suspects that an employee who returns to work following back surgery has

become addicted to painkillers. How would the Americans with Disabilities Act apply to

the way the manager should handle this situation? (If you need a review of ADA

guidelines, see Chapter 3).

HR Oops!

Employees Say Anything to Stay Away from Work

1. Does a bizarre excuse signal a greater degree of dissatisfaction than a believable excuse?

Why or why not?

2. Why do companies care about employees’ reason for absences? If you worked in a

company’s HR department, what reasons for caring would you focus on?

Fundamentals of Human Resource Management, 8e Instructor’s Manual

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Best Practices

At Quicken Loans, Employees Are the Most Valuable Asset

1. What qualities of job relationships do Quicken Loans’ employees value? How does the

company promote such relationships?

2. How do tasks and roles contribute to job satisfaction at Quicken Loans?

Fundamentals of Human Resource Management, 8e Instructor’s Manual

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End of Chapter Questions and Cases

Thinking Ethically

Is It Ethical to Fire by Texting or Tweeting?

1. How well does employment termination by text message meet the principles of justice

described in this chapter?

2. How well does it respect the basic human rights described in Chapter 1?

Review and Discussion Questions

1. Give an example of voluntary turnover and an example of involuntary turnover. Why

should organizations try to reduce both kinds of turnover? (LO11-1)

2. A member of a restaurant’s serving staff is chronically late for work. From the

organization’s point of view, what fairness issues are involved in deciding how to handle

this situation? In what ways might the employees’ and other servers’ ideas of fairness be

different? (LO11-2)

Fundamentals of Human Resource Management, 8e Instructor’s Manual

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Hill Education.

Every individual will have his or her own perception as to what constitutes fairness. For

instance, the other employees may perceive this work-rule infraction as legitimate

because they know the employee has to tend to children each day right at the shift start

time. Or they may be unhappy about the chronically late employee having several

chances to modify the behavior because they know that another employee had been

terminated after being late only once.

3. For the situation in Question 2, how would a formal discipline policy help the

organization address issues of fairness? (LO11-2)

4. In what type of situation would an employer have a legitimate reason for learning about

an employee’s personal matters outside the workplace? (LO11-3)

5. The progressive discipline process described in this chapter is meant to be fair and

understandable, but it tends to be slow. Try to think of two or three offenses that should

result in immediate discharge, rather than follow all the steps of progressive discipline.

Explain why you selected these offenses. If the dismissed employee sued, do you think

the organization would be able to defend the action in court? (LO11-4)

6. A risk of disciplining employees is that some employees retaliate. To avoid this risk,

what organizational policies might encourage low-performing employees to leave while

encouraging high-performers to stay? (Consider the sources of employee satisfaction and

dissatisfaction discussed in the chapter.) (LO11-5)

Fundamentals of Human Resource Management, 8e Instructor’s Manual

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7. List forms of behavior that can signal job withdrawal. Choose one of the behaviors you

listed, and describe how you would respond if an otherwise valuable employee whom

you supervised engaged in this kind of behavior. (LO11-5)

8. What are the four factors that influence an employee’s job dissatisfaction (or

satisfaction)? Which of these do you think an employer can most easily change? Which

would be the most expensive to change? (LO11-5)

9. Consider your current job or a job you recently held. Overall, were you satisfied or

dissatisfied with that job? How did your level of satisfaction or dissatisfaction affect your

behavior on the job? Is your own experience consistent with this chapter’s models of job

withdrawal and job satisfaction? (LO11-5)

10. Suppose you are an HR professional who convinced your company’s management to

conduct a survey of employee satisfaction. Your budget was limited, and you could not

afford a test that went into great detail. Rather, you investigated overall job satisfaction

and learned that it is low, especially among employees in three departments. You know

that management is concerned about spending a lot for HR programs because sales are in

a slump, but you want to address the issue of low job satisfaction. Suggest some ways

you might begin to make a difference, even with a small budget. How will you convince

management to try your ideas? (LO11-6)

11. Why are exit interviews important? Should an organization care about the opinion of

people who are leaving? How are those opinions relevant to employee separation and

retention? (LO11-6)

Fundamentals of Human Resource Management, 8e Instructor’s Manual

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problem areas. Organizations should care about the reasons why people are leaving them.

This organizational feedback can identify problem areas and the appropriate corrective

action can be taken to prevent the loss of other personnel.

Taking Responsibility

Yahoo’s Struggle to Get Employees Cheering Again

1. Based on the information given, how well is Yahoo assured that its employees believe the

company is treating them fairly, and how could it improve?

2. What would you expect to be the impact of job satisfaction on Yahoo employees’

behavior? How should Yahoo address the problem?

Managing Talent

Walmart Refocuses Its Employee Retention Strategies

1. What circumstances described in this case make employee retention challenging for

Walmart?

2. What sources of job satisfaction is Walmart providing, according to the information

given? Name two other sources of job satisfaction that you think could improve job

satisfaction and employee retention in Walmart stores.

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increases will incentive potential and existing workers, with the hopes that a better

quality of worker applies and is retained.

In addition, the paid family leave and benefits packages being provided to store

employees would increase job satisfaction among all employees as well. Walmart would

be well advised to continue with its plan on paid education, training and development,

and other programs that emphasize comfort in addition to performance.

HR in Small Business

Happy Employees the Key to Radio Flyer’s Success

1. Based on the information given, which of the factors that contribute to employees’ job

satisfaction exist at Radio Flyer?

2. Suggest one other action Radio Flyer could take that would contribute to employee

retention.

Fundamentals of Human Resource Management, 8e Instructor’s Manual

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Recommended Connect Activities

Job Dissatisfaction

Learning Objective: 11-05 Explain how job dissatisfaction affects employee behavior.

Activity Summary: Students will match the organizational causes of job dissatisfaction to the

correct categories.

Follow-Up Activity: Use an active classroom discussion to help students apply terms from the

course and provide further understanding. As individuals or in small groups, have students

provide examples of each source of job dissatisfaction. Bring the entire class together and have

an engaged discussion with the best cases of each source. Take the activity to another level of

understanding by providing suggestions as to dealing with employees who are experiencing these

dissatisfaction issues.

Strategic Surveys

Learning Objective: 11-06 Describe how organizations contribute to employees’ job

satisfaction and retain key employees.

Activity Summary: The case analysis provides students with examples on how surveys can be

used to support all sections of HRM and employee satisfaction.

Follow-Up Activity: Depending on the number of students in your class, split them into two

large groups. Have one group research the positives and negatives of Forced Ranking

Performance systems, and then have them develop a Forced Ranking survey that asks specific

questions from this perspective. The second group of students would do the same process for a

Behavior Anchored system. Upon completion of the surveys, students would present their

findings, or have the other group critique the end product.

Progressive Discipline

Learning Objective: 11-03 Identify legal requirements for employee discipline.

Activity Summary: The case analysis gives students an understanding of the progressive

discipline process and how it can benefit both the employee and the organization.

Follow-Up Activity: Many examples of progressive discipline policies can be found online, with

a large number of schools/universities making up the first results. Rather than work through the

various definitions, the Research Foundation at SUNY provides guidelines for implementation.

Active classroom discussion can revolve around the tactics, suggestions, and pitfalls of

implementing a new progressive discipline program.

Fundamentals of Human Resource Management, 8e Instructor’s Manual

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CHRO Conversations: Jerrold Williams, Daymon Worldwide

Learning Objective: 11-01 Distinguish between involuntary and voluntary turnover, and

describe their effects on an organization.

Activity Summary: This video case helps students better understand the options companies

have to plan for future HR needs and to retain the best talent.

Follow-Up Activity: One revealing concept from the CHRO video was that Mr. Williams

instructs his workers to interview with other firms during their first year of employment. This

strategy is used as a learning opportunity, where potential risk can be mitigated by the immense

upside. Projects based on this concept would have students write an executive summary on their

last interview, with a focus on what they learned from a corporate strategy, structure, operations,

compensation, etc. perspective.

Fundamentals of Human Resource Management, 8e Instructor’s Manual

Classroom Exercises

Students may benefit from exercises that illustrate the concepts of the chapter. Use these along

with CONNECT activities.

1. Understanding Turnover

Instructors may engage students in a general discussion meant to support the

understanding of turnover, specifically the differences between voluntary and

involuntary. Review and Discussion question #1 may be used to begin the discussion.

Taking Responsibility, question #1 may be used to discuss and compare voluntary and

involuntary turnover further.

2. Fairness

Review and Discussion questions #2 and #3 may be used for discussion concerning

fairness and justice. Students may then be asked to discuss the Thinking Ethically

vignette as a way to further discuss fairness and justice in the workplace.

3. Job Satisfaction

Instructors may have students review Figure 11.1 and the content in this section.

Instructors may pose Review and Discussion question #4 to begin class discussion. Then,

instructors may ask students to review the HR in Small Business vignette and discuss the

topic of satisfaction. Discussing the vignette Taking Responsibility, question #2 may also

contribute to discussion and understanding of job satisfaction and how to improve it

among employees. Finally, the Managing Talent vignette may be used to contrast work

environments.

4. HRM Career Considerations

Instructors may wish to have students identify components in Chapter 11 within both the

Society for Human Resource Management Body of Competency & Knowledge and the

Human Resource Certification Institute’s A Guide to the HR Body of Knowledge.

Discussion could focus on how these chapter concepts are important to the development

of their careers and potential certification.

5. Vignette Discussions

Any of the vignettes (see above), may be employed for classroom discussion. Students

could be asked to respond as individuals or placed into groups for discussion. Individuals

and/or groups may then be asked to defend their responses and rationale when comparing

and contrasting other responses.