Organizational Behavior: Improving Employee Retention & Motivation

This report delves into the realm of organizational behavior, scrutinizing its profound impact on employee motivation, engagement, and turnover rates. It identifies key factors, including motivation theories like Maslow's Hierarchy of Needs and perception theories, that influence employee behavior within the workplace. The report highlights the detrimental effects of factors such as conflicting perceptions and lack of recognition on employee morale and retention. It then proposes practical recommendations, such as aligning opportunities with individual capabilities, fostering a culture of recognition, investing in training and career progression, promoting cultural innovation, and encouraging teamwork, to mitigate employee turnover and bolster engagement. Furthermore, the report elucidates the positive financial outcomes stemming from improved employee retention, including reduced recruitment and training costs, enhanced productivity, and increased profitability. Ultimately, it underscores the significance of human resources as invaluable assets that drive organizational success.

Human behavior in organization

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Contents
Introduction...........................................................................................................................................2
Factors that affects the employee motivation, engagement and turnover...............................................2
Recommendation...................................................................................................................................4
Impacts on financial outcomes..............................................................................................................6
Conclusion.............................................................................................................................................7
References.............................................................................................................................................8

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Introduction
Organisation Behaviour is the study of human behaviour at the workplace. The behaviour of
an individual is observed by focusing on their actions in events and in daily routine activities.
The process of observing and analysing the behaviour of an individual is called organisation
behaviour (Miner, 2015). It helps in reducing the challenges which are faced by every
organisation such as employee turnover, demotivation and many others. It is required to
analyse the behaviour of an individual so that the manager or leader of an organisation can
motivate the employees, and use the technique to retain them for long time. The financial
performance of an organisation is also affected due to increasing employee’s turnover. In this
report, the discussion is made on the Organisation behaviour and its impact on the financial
situation of the company.
In the beginning of the report, the factors are identifies that affects the employee motivation,
engagement and turnover will be discussed. After the discussion is made on the
recommendation to improve the engagement and reduce the turnover. At the end of the
report, the impact of improving employee’s turnover and engagement on financial statement
will be discussed.
Factors that affects the employee motivation, engagement and turnover
There are many factors that affect the employee motivation, engagement and employees
turnover by using the organisational behaviour.
Theory of Motivation
Motivation of theory is an organisational behaviour theory that helps to motivate the
employees. This theory influences the people to stay with the organisation and contribute

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their best in their responsibility. There are many motivation theories that help to motivate the
employees and these are Maslows Hierarchy of Needs: Motivation, Goal-setting Theory:
Motivation, Herzberg’s Two Factor Theory: Motivation, and Expectancy Theory: Motivation.
According to Maslows Hierarchy Needs, the incentive factors are given to employees who
are in the stage of physiological and safety in order to motivate them so that they perform
better and retain with the organisation. Organisation motivates the employees who are in the
stage of self-actualisation and wants the respect and appreciation for their work.
Motivation factors of organisation behaviour theory contains the many factor that helps to
motivate the employees such as incentives, rewards, promotion , transfers, positive feedback
and many others. These factors have positive impact because it encourages the employees
that they retain for long time with the company. The employee turnover can be reduced by
applying the motivation theory (Lăzăroiu, 2015).
Theories of Perception
Theories of perception describe the view point of the people towards the specific topic and
matter. There are two types of perception theories and these are self-perception theory and
the cognitive dissonance theory. Self-perception theory defines the attitude of an individual to
do the things. Organisation observes an individual performance by organising the group
discussion or the daily routine activities (Vasu, Stewart, and Garson, 2017).
The employee faces the challenges while observing their behaviour by the organisation. It is
observed that the different perception of employees and employer towards the particular work
and decision arise the conflict at the workplace. Raising conflict at the workplace affects the
motivation of employees due to which the performance of employees is also fall down.
Different perception of employers and employees also increases the rate of employee’s
turnover. The employees prefer to resign the jobs instead of taking the mental pressure of

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conflicts at the workplace. Employees always prefer the healthy environment at workplace so
that they learn new skills and develop their personality (Neff, 2017).
According to the cognitive theory, the behaviour and attitude is relies on the position of an
individual in the organisation. Changing the position of an individual affects the performance
of an individual and their perception towards the organisation because they have to do the
difficult task through simple task. It is observed that the employees perform well while
performing the simple task and worse in the difficult task. The employees are getting
demotivated due to worse performance and negative feedback regarding their performances.
Recommendation
There are many ways to reduce the employee’s turnover and improve the engagement in
order to enhance the services. The five practical recommendations will be discussed as given
below:
Right opportunities to right people
The board of the organisation has to select the right person for the right job and opportunity
for the effective services. Selecting the right people is an important part for the management
activity. A wrong decision can be a big mistake for the organisation in terms of performance
because employees did not perform well in their responsibilities due to lack of knowledge
and interest. Performance of employee will be down if they are hired at the right position as
per the ability and capacity. The satisfied employee always stays with the organisation for
ling time (Lu, Lu, Gursoy, and Neale, 2016).
Recognition
It has been seen that the employee are always motivated from the appreciation of their work.
The positive feedback of the manager motivates the employees to perform well and stay with

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the organisation for long time. Promotion is not always better recognition but it also means a
lot of formal and informal acknowledgement of employee efforts. Praise and appreciation
develops the positive work environment. Motivated employees perform well as compare to
the others. It is required to develop the positive environment so that the employee retail for
long time with the organisation (Gallup, 2018).
Training and career progression
It is observed that the first preference of employees is always been learning and developing
their own personality. The board has to provide the opportunity to employees to learn new
things and develop their own personality. Organising the training period helps the employees
to learn the new things and also enhance their proficiency. Employees stay long time with the
organisation when they find the new opportunity and want to learn the new things. Training
and career progression is best practical recommendation to reduce the employee’s turnover.
Culture innovation
People came from the different environment for the particular purpose. There are many issues
arise due to cultural a difference that is why; it is required to develop the positive
environment. Creative thinking and collaboration have to be encouraged and rewarded
equally. Different people have different way of doing the things due to which the employees
learn the new thing and way to the work. A single idea can change the direction of the
organisation. Listen and take the suggestion of employees encourage them to perform well
and think about the organisation. This type of process connects the employees with the
organisation due to which the employee turnover is reduces and employee engagement
process is also enhance (Cascio, 2015).

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Working in teams
The board has to organise the group discussion and create the working environment so that
the employees perform well in their performances. Working in a team is a strategy for the
organisation because the skills and capability of an employee is enhances to do the work.
Everyone present their own point of view in the group due to which the confidence and
personality will develop (Holdsworth, Bowen, Brown, and Howat, 2017). Everyone wants to
be a leader in the team that is why; they put their full efforts in performing their
responsibilities. Improving performance is the best for the organisation to improve the
employee engagement (Inside 6q., 2018).
Impacts on financial outcomes
Reducing cost
Improving employees turnover reduce the cost of the organisation. It has been seen that the
organisation has to invest $40000 on each person who leaves. But after adopting the
recommendation, the turnover ratio is reduces and the cost of exchanging the employee is
also reduces. Improving turnover has the positive impact on the financial position of the
organisation (Andriof, Waddock, Husted, and Rahman, 2017).
Reducing expenses of training
It is observed that the organisation has to invest in training period to train the new employees.
If the old employees stay with the organisation for long time then the expenses of training is
reduces. The amount which is invested in training period of new employees can invest in the
other activities of organisation due to which the efficiency and performance of organisation is
improved (Noe, Hollenbeck, Gerhart, and Wright, 2017).
Earns high profit

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It has been seen that the experience employee perform well in the organisation as compare to
the new employees. The flow of doing the work and the efficiency is high as per the high
experienced. The high performance of employee means standard quality of goods and
services due to which the brand image is also enhanced. It is observed that the new employee
also takes time to understand the work of organisation and adjust in the new environment so
that they perform well in their performances (Denhardt, Denhardt, Aristigueta, and Rawlings,
2018). Improving employee’s turnover means large number of old employees due to which
the performance of organisation is also improved. The organisation can earned the high profit
by improving the high performance that is why; improve employees turnover has positive
impact on financial position (Plutomen, 2018).
Conclusion
From the above discussion, it is concluded that the organisation require to improve the
employees turnover, employees engagement and motivation. As per the analysis, it has been
seen that the organisation behavioural theory affects the employee motivation, engagement
and turnover. It is essential for the organisation to adopt the techniques and approaches to
improve the turnover and engagement. The organisation can reduce the employee
engagement, employee turnover by motivating them; develop positive environment and many
others. It is beneficial for the organisation to improve the employee’s turnover and
engagement in terms of financial position. The cost is reduces of the organisation instead of
hiring the new employees and the other expenses is also reduces which is invested in setting
the employees. At the end, human resources are the major asset of the organisation due to
which they can easily attain the success.

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References
Andriof, J., Waddock, S., Husted, B. and Rahman, S.S. (2017) Unfolding stakeholder
thinking: theory, responsibility and engagement. Routledge.
Cascio, W.F. (2015) Managing human resources. McGraw-Hill.
Denhardt, R.B., Denhardt, J.V., Aristigueta, M.P. and Rawlings, K.C. (2018) Managing
human behavior in public and nonprofit organizations. CQ Press.
Gallup. (2018) Five Ways to Improve Employee Engagement Now. [online] Available from:
https://www.gallup.com/workplace/231581/five-ways-improve-employee-
engagement.aspx[Accessed 15/5/19].
Holdsworth, E., Bowen, E., Brown, S. and Howat, D. (2017) The development of a program
engagement theory for group offending behavior programs. International journal of offender
therapy and comparative criminology, 61(13), pp.1479-1499.
Holdsworth, E., Bowen, E., Brown, S. and Howat, D. (2017) The development of a program
engagement theory for group offending behavior programs. International journal of offender
therapy and comparative criminology, 61(13), pp.1479-1499.
Inside 6q. (2018) 10 Factors Contributing to Employee Engagement.[online] Available from:
https://inside.6q.io/10-factors-contributing-employee-engagement/ [Accessed 15/5/19].
Lăzăroiu, G. (2015) Work motivation and organizational behavior. Contemporary Readings
in Law and Social Justice, 7(2), pp.66-75.
Lu, L., Lu, A.C.C., Gursoy, D. and Neale, N.R. (2016) Work engagement, job satisfaction,
and turnover intentions: A comparison between supervisors and line-level employees.
International Journal of Contemporary Hospitality Management, 28(4), pp.737-761.
Miner, J. B. (2015). Organizational behavior 1: Essential theories of motivation and
leadership. Routledge.

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Neff, W. (2017) Work and human behavior. Routledge.
Noe, R. A., Hollenbeck, J. R., Gerhart, B. and Wright, P. M. (2017) Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Plutomen. (2018) 20 ways to improve employee turnover and engagement!. [online]
Available from: https://pluto-men.com/insights/20-ways-to-improve-employee-turnover-and-
engagement/[Accessed 15/5/19].
Vasu, M.L., Stewart, D.W. and Garson, G.D. (2017) Organizational Behavior and Public
Management, Revised and Expanded. Routledge.