Influence of Employee Motivation and Job Satisfaction PDF

Research and Academic Writing
Contents
Task 1 - Literature Review....................................................................................................................2
1.1 Literature Review Summery........................................................................................................2
1.2 Employees Turnover....................................................................................................................2
1.3 Types of Employee Turnover......................................................................................................3
1.4 Reasons for Employee turnover...................................................................................................3
1.5 Consequences of labor turnover...................................................................................................4
1.6 Employee Motivation..................................................................................................................6
1.7 Motivation Types.........................................................................................................................6
1.8 Motivation Factors.......................................................................................................................7
1.9 Job Satisfaction............................................................................................................................8
1.10 Employee motivation, job satisfaction vs. employee turnover...................................................8
1.11 Summery...................................................................................................................................9
References...........................................................................................................................................10
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Research and Academic Writing
Task 1 - Literature Review
Influence of Employee Motivation and Job Satisfaction of Employee Turnover at an
organization
1. Literature Review
1.1 Literature Review Summery
Objective of this Literature Review is to support the basis on which the primary research will be
constructed by critically reviewing and evaluating existing key academic concepts of employee
motivation job satisfaction and employee turnover. Initially literature was reviewed with association
to the research topic employee turnover, reasons and their consequences which followed with
literature on employee motivation and job Satisfaction.
1.2 Employees Turnover
In many cases the organization will succeed to get the human resources who are efficient and
effective in the tasks and duties that they are doing within the organizational unit, but the key point of
challenge comes up when organizations try to make sure that the employees who are good in their
jobs and duties will be retained within the company itself. This is where the concept of employee
turnover is coming into the picture because it is a concept that is revolving around how exactly an
organization will try to capture and keep its workforce with itself rather than letting them leave the
organization.
Over the last two decades, the issue of employee turnover still exists among the all other managerial
issues of the organizations in the entire world. The rate of workforce turnover is very high even in
industrially developed nations. According to Blahnam (2005) high turnover affects firms of all sizes.
Employees play a major role in organizational efficiency, quality, and profitability therefore they must
be given the support they need in order for them to stay with the organization. Otherwise, this will
create a high employee turnover that could undermine the success of the organization.
According to Bridger et al., (2013) employee turnover starts with an intention; while Hwang et al.,
(2013) adds that perceived job stress has significant negative relationships with job satisfaction and
significant positive relationships with turnover intention. According to Bluedorn (2001) turnover
intention is the attitude or the level where an employee has the possibility to leave the organization or
resigned voluntarily from the organization. Further described Mobley, Horner & Hollings (2001) the
desire to move can be early symptoms of turnover in a company.
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Research and Academic Writing
Employee turnover refers to the end of a relationship between an employee and an organization and
an employee turnover rate is the percentage of employees that leave the organization (Phillips &
Edwards, 2008). Adams & Beehr (1998) define organizational turnover as ‘leaving any job of any
duration’. Woods (1995) describes each time position is vacated, either voluntarily or involuntarily, a
new employee must be hired and trained. This replacement cycle is known as employee turnover.
1.3 Types of Employee Turnover
The phrase "employee turnover" has a negative connotation – a stigma associated with an employer's
obligation to reduce turnover at all costs. However, there are different types of turnover and not all
types of employee turnover are negative. Turnover occurs for a variety of reasons, ranging from
termination for poor performance to the departure of highly-skilled employees who resign after they
help grow start-up businesses to sustainable levels.
How many people are leaving each year Turnover = Number of staff leaving per year x 100 / average
number of staff
(Morrell et al, 2001)
According to Lee et al., (2008) There are other two types of employee turnover as well,
Functional turnover – low performing employees leaves the organization. Again the employer has
less control but can minimize with proper training and education.
Dysfunctional turnover – high performing employees leaves the organization. This is an issue for
the organization which directly affects organizations performances.
1.4 Reasons for Employee turnover
Hewitts (2006) and Sherman et al., (2006) highlight reasons for employee turnover in the
organizations as hiring practices, managerial style, lack of recognition, lack of competitive
compensation system, toxic workplace environments, lack of interesting work, lack of job security,
lack of promotion and inadequate training and development opportunities, amongst others. If the
company determines the most common causes of employee turnover, it would certainly be able to
take the necessary steps for recruiting and retaining well-qualified personnel (Armstrong 2006).
1.4.1 Work Environment
According to Moureen (2004) work environment is also one of the main causes for employee
turnover. Employees prefer to work in an environment which is suitable for them. Spencer (2001)
reports Poor furniture and working equipment lowers the level employees’ job satisfaction and this
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Research and Academic Writing
plays a role towards realization of increased employee turnover rates. This agreed with findings by
Homer (2001) that safe working environment increases employees job satisfaction and helps the
origination to retain employees for a long time.
1.4.2 Job Recognition
According to Agyeman & Ponniah (2014) the absence of recognition and appreciation may cause
turnover intention among employees. One of the key causes of employee turnover in Saudi
organizations is lack of recognition (Iqbal, 2010). Michael (2008) reported that recognition is the most
important motivational variable that contributes to retain employees in the organization. Tizazu
(2015) indicated that recognition had a positive and significant effect on employee retention so lack of
this factor of motivation may cause turnover intention.
1.4.3 Ineffective Communication
Charles (1981) suggested that the communication is one of the factors of employees’ turnover.
Similarly Branham (2005) states that poor communication between management and employees and
between the departments as one of the reasons why employees leave their organization. From the
above studies it can assume that poor communication from management leads to low employee
morale and high turnover.
1.4.4 Career Advancement
Personal development opportunities provided by organization is inversely proportion to the employee
turnover rate (Wang, Chen & Xu, 2001). Although financial incentives will encourage employees to
stay over the short term, over the long term they need opportunities for growth (Tyani, 2001). Donald
(1999) explained that existence of career development opportunities like staff training in
organizations helps to minimize employee turnover rates.
1.5 Consequences of labor turnover
Replacing a valued employee is expensive. Some costs are difficult or impossible to measure, like
added stress on remaining workers or disruptions in customer service. Other costs — including
recruitment, hiring and training expenses — can be estimated accurately. The costs of employees
turnover normally includes; advertising expenses, headhunting fees, resource management expenses,
loss of time and efficiency, work imbalance, and employee training and development expenses for
new joiners (Harrie,2002).
Turnover is no less a problem for major companies, which often spend millions of dollars a year on
turnover-related costs (Miller, 2006). For the smallest of companies, a high turnover rate can mean
that simply having enough staff to fulfill daily functions is a challenge, even beyond the issue of how
well the work is done when staff is available (Richard, 2008).
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