In the today competitive business environment, change management plan for employee engagement and retention can increase performance and productivity of business. The big challenge for managers is to manage business performance and lead the business to success. The two key factors behind the organization performance are efficiency and productivity and manager acknowledges that employees are drivers of organization performance, innovativeness, and competitiveness.
The literature (Maslach et al, Bakker & Schaufeli, and Coffman & Gonzalez-Molina) contends that priority task for an organization is to drive employees to work proactively and collaborate with others, take responsibility for career development as well as the commitment to ensure high-quality performance standards (Bailey, Madden, Alfes, & Fletcher, 2017).
Employee engagement is defined as a persistent and positive affective-motivational fulfillment state for the employee that is characterized by dedication, vigor, and absorption is known as. The employee engagement has statistical relationship with employee retention, productivity, safety, profitability and customer satisfaction. Employee engagement is different from organizational commitment and job satisfaction which approve to effect organizational outcome. On the other hand, Employee retention is known as the process of reducing the employee turnover rate (Al-Haddad & Kotnour, 2015).
Employee retention involves keeping the staff members that are important and not let them go for whatever reason, especially to the competitors. Employee retention is a deliberate and conscious effort to retain quality employees for the company for efficiency and productivity (Anitha, 2014).
This section of study critically evaluates the literature on change management, employee engagement, and retention. It analyses consequences and antecedents of employment engagement and retention as well as evaluates the literature on change management models. In the first, the employee engagement, its importance, engagement during time of change and engagement (Job Demand and Resource) JD-R model is discussed. In the second section, it analyses the employee retention, it consequences and factors which influence employee retention are presented. In the third, change management context, types and models are presented.
Motivation can understand when employees are willing to exert the high level of efforts and contribution towards the organization but such efforts prerequisite must meet the individual needs. The literature shows that employee motivation has the impact on employee engagement and retention. According to Robbins, employee motivation, in an organization directly influences productivities, business performance and cost of the organization (Dobre, 2013).
According to Halsey & Pmp (2017), organization must develop great workforce through focusing on efforts which improve rewards, motivation, and retention. Motivation can be seen as two important factors which are own motivation and work motivation and the i.e. quicker way to retain and motivate people is essential.
Maslow’s hierarchy of needs consists of five key elements which are self-actualization, self-esteem, safety, social and physiological aspects. In the context of Maslow hierarchy of needs, people first fulfill basic needs such as safety and physiological needs because making efforts to fulfill the higher-order needs such as esteem and social needs. The two-factor theory by Herzberg gives attention to the dissatisfaction between the factors which increases the job satisfaction (motivator) and factors which can prevent dissatisfactions but cannot improve the employee satisfaction as shown in diagram below (Bryant & Allen, 2016).
Maslow Hierarchy of Needs and Herzberg Factor Theory
Barrick, Thurgood, Smith, & Courtright (2015) discussed that motivator factors are concerned with job contents such as responsibility, job challenges, recognition, achievement, growth and promotion. The absence of these factors will not create dissatisfaction but person will not be in position to experience satisfaction. The motivational factor proposed by Herzberg is corresponding to Maslow’s self-actualization and self-esteem.
On the other hand, hygiene factors are one surrounding the jobs which are working condition, job security, interpersonal relationship, quality of supervision and salary etcetera. These factors may not motivate an individual but absence of these can result in dissatisfaction as well as unhealthy organization environment.
Hygiene factors are similar to Maslow psychological needs, security and safety needs. Therefore, focusing on hygiene factors can reduce the dissatisfaction (Ozguner & Ozguner, 2014).
Employee motivation linkage with employee engagement and retention
May, Gilson and Harter discuss the need of people for both self-employment and self-expression in their working lives. The three conditions identified for engagement are psychological meaningfulness, conditions for engagement and safety and availability. The fulfillment of these factors means employee themselves self-determined motivated. Khan explained that psychological conditions fulfill these can work as motivation (competences, autonomy and relatedness) and employee engagement (meaningfulness, conditions for engagement and safety).
Christain, Ghaza and Slaughter (2011) highlighted that employee engagement and motivation result in increased employee performance and firm productivity. Employee retention involves actions to retain employee and motivation plays an important role in employee satisfaction and engagement and resultantly improve employee retention. The employee motivation is useful for employee retention through reward, open communication, performance based bonus and career development.
In the context of Herzberg personal factors, employee feel satisfied when derive pleasure from job and resulting their feeling influence attitude towards work and company. The employee motivation directly influences the employee retention through commitment, involvement and working environment (Zacher, Pearce, Rooney, & McKenna, 2014).
Schein (2010) defines organizational culture as share belief and values formed from behaviour norms over the defined period of time to resolve problems. The internal business environment of an organization depicts beliefs, assumption, behaviour and value of employees and can be source of competitive advantage. The culture of an organization is a unique feature that differentiates it from other organizations, this unique feature of the organization is seen as distinctive to a particular organization and normally affects the way the specific organization goes about implementing their organizational goals (Rachel, Pavithra, & Imran, 2016).
Schein, (1990) proposed that there are visible and invisible levels of corporate culture. The diagram below depicts the Culture Iceberg. Organization culture is made up of more superficial aspects such as observable symbols, patterns of behaviour and ceremonies and more deep seated underlying assumptions, values and beliefs. Schein proposed that it important to consider feelings and beliefs when considering potential changes to organization culture (Alvesson, 2012).
What is employee Engagement?
According to Mone & London (2014), employee engagement involves harnessing the members of the organization for work roles and people express and employ themselves cognitively, physically and emotionally during the role performance. Engagement is not only associated with physical energies to accomplish the task but also involves psychological aspects how people experience in work context. Engagement is the positive attitude held by the employee towards the value and vision of the organization.
An engaged employee effectively contributes to business context and collaborates with colleagues to improve performance. It is important that organization engage its employees for productivity and performance and such engagements require two-way relationship between the employee and organization (Crawford, Rich, Buckman, & Bergeron, 2014).
Importance of employee engagement at individual and organization level
According Shuck & Reio (2014), the employee engagement benefits at the individual level is that engaged employee experience positivity through feeling such as inspired and enthusiastic. The engagement promotes employee productivity at work and employee considers the situation vital based on better control of the situation.
Bindl and Parker (2011) stated that engage employee will have more adaptive and proficient attitude due to positive effect in highly ambiguous and dynamic situation. Engaged employee actively involves the idea, procedure, product, and service as well as referred to positive working behavior. Moreover, engage employees willing to make effort in their job and display their thinking, values, and feelings in accordance with organization value.
On the other hand, a disengaged employee is associated with issues such as physical problems and depressive symptoms which affect the employee well-being. A disengage employee pass working time without passion and sleepwalking throughout the working day (Jenkins & Delbridge, 2013).
Albrecht, Bakker, Gruman, Macey, & Saks (2015) elaborated that at the organization level, engage employee to contribute to the effectiveness of organization because of intrinsic value they see in work and understand the vision of the organization. The connection between organization strategy and job empowered them to make decisions. The positive relationship between profitability and engagement includes customer satisfaction, sales, higher productivity and customer retention.
Barrick, Thurgood, Smith, & Courtright (2015) added that employee engagement predicts the organizational success, employee outcomes and financial performance of the organization. Engaged employees are less likely to leave the organization and actively advocate organization culture and image and resulting increasing the customer satisfaction. The employee engagement influence business growth, customer loyalty and profitability.
Employee engagement during time of change
Macey and Schneider (2008) discussed the important the employee engagement especially when organization is experience change and concluded that employee engagement can be source of competitive advantage for an organization and factor of successful change management.
Hansen, Byrne and Kiersch (2014) stated that companies before beating the competitors must win the workplace. The study showed that employee engagement is important driver of company success against the competitor. In addition to competitive advantage, Graber (2015) highlighted the benefits of employee engagement are higher level of productivity, employee attrition and greater level of customer satisfaction.
Macey and Schneider (2008) elaborated that definition of employee engagement is somewhat inconsistent but overall include a positive statement which includes passion, commitment, focused energy and enthusiasm. Employee engagement results in discretionary efforts put forward by the employee which integrate the efforts for both in the role and beyond the role of the employee.
Hansen et al (2014) stated that employee engagement is combination of multiple psychological states which are availability, meaningfulness and safety. The safety refers to positive contribution of confident employee and meaningfulness represents how individual perceived that it contribution to organization are valued.
During the times of organization change, it is important that employee engagement remains priority during the whole change management process from the prospective of employee productivity, business results and retention perspective.
In addition, Willis Towers Watson (2015) explained how employee engagement is affected during the time of change in an organization and discussed that employee engagement decreases during the early stage of change which is followed by a period of full recovery and benefits of employee engagement realized for organization.
What makes employee engaged – Job-demand and resource (JD-R) model
JD-R model also known as ‘Job Demands-Resources model’ is useful to analyze and understand the antecedents associated with employee engagement. Job resources and job demand are two categories of psychological work characteristics. Job demand includes those aspects which are important for psychological or physical efforts and thus, associated with psychological cost (Gordon, Demerouti, Bipp, & Blanc, 2015).
Job demand may lead to burnout, fatigue and health problems for an employee. On the other hand, Job resources refer to the aspect of job which is functional in achieving the work goals and stimulate the learning and development and personal growth while reducing the job demand and psychological cost. Job resources foster the intrinsic and extrinsic motivation at work that possibly related to engagement and commitment (Tims, Bakker, & Derks, 2013).
Job resources such as autonomy, performance feedback, social support, supervisory coaching as well as opportunities for professional development are related to work engagement. Job resources influence the work engagement of employee and high level of work engagement predicts employee satisfaction with job resources. The literature shows that coaching, job control, and autonomy positively affect the work engagement over time (Bakker, Demerouti, & Sanz-Vergel, 2014)
Role of leadership and management in engagement
According to Kundu & Lata (2017), in an organization, positive or negative experience transfer from one person to another person. Therefore, manager should act as role model for employees as manager influence the mood of followers. The manager plays an important role in building confidence and trust through exhibiting coordination and staff experience positive moods. In addition, manager can increase engagement of employee by giving support, autonomy, coaching, recognition, respect and providing development opportunities which are regarded as job resource for the employees (De Lange et al., 2008; Lu, Wang, Lu, Du, & Bakker, 2014).
According to Bui et al (2017), transformation leadership is useful to measure the effect of managerial style and employee engagement. It encloses series of managerial behaviors including motivating employees to participate, encouraging follower positive behavior and helps the followers to achieve their goals working in the organization. Ghafoor et al (2011) and Raja (2012) suggested that transformational leadership develops a feeling of mutual respect, reciprocal trust and mutual respect which make the employee feel engaged. The four I’s of transformational leadership are inspirational motivation, idealized influence, individual consideration and intellectual stimulation.
In the context of idealized influence, the manager with an image of role model for employees develops mutual trust and respect. The manager will encourage employees in the team with inspirational motivation to achieve goals for the organization. Intellectual stimulation means manager will encourage creativity and innovation (Breevaart, et al., 2014).
Individual consideration is important leadership behavior and based on two dimensions which are developing leadership and supportive leadership. The supportive leadership context means leadership will show caring, sympathy and listening to the followers.
On the other hand, development leadership represents encouraging and supporting employee and career development through observation, counseling, and recording of progress. It is evident that both managers and leadership play important driver of employee engagement. The competencies such as feedback, reviewing, praise, guiding and recognition as well as autonomy and empowerment are important competencies and these elements are also components of JD-R model (Zacher, Pearce, Rooney, & McKenna, 2014).
Human resource (HR) and employee engagement
According to Alfes, Shantz, Truss, & Soane (2013), company HR system includes benefits, reward, and performance management practices to motivate the employee and help to achieve organization goal. The training, staffing and development practices contribute to capabilities of employee and ensure functional excellence and thus, right people in the right position. HR practices enhance manager and leaders capabilities so that employee works in the supportive environment. HR plays the vital role in fostering positive organizational culture and create desire work environment through job design practices, organization design, and training.
Zhong, Wayne, & Liden (2016) added that an important job resource is task characteristic. The task identity, skill variety, autonomy and performance feedback and task significance are the job resources at the task level and related to positive outcomes. The challenging work for employee results in the experience of psychological meaningfulness, varied, creative and autonomy. In context of HR practices, reward and praise, performance feedback, role clarification, professional development is drivers of employee engagement.
What is employee retention?
According to Boswell, Gardner, & Wang (2017), employee retention is known as the process of reducing the employee turnover rate. Moreover, retention is also associated with benefits and compensations while other links it to culture and how people treated in the organization. Employee retention involves keeping the staff members that are important and not let them go for whatever reason, especially to the competitors. Employee retention is a deliberate and conscious effort to retain quality employees for the company for efficiency and productivity. Employees with a high organizational commitment are those who have a strong identification with the organization, value the sense of membership within it, agree with its objectives and value systems, are likely to remain in it and, finally, are prepared to work hard on its behalf (Curtis and Wright 2001, p. 60).
Effects of employee turnover
Hancock, Allen, Bosco, McDaniel, & Pierce (2013) explained that the main problem associated with employee turnover is a cost for the company which is either direct or indirect. The various issues arise due to these costs are selection dilemma for potential arrangement, labor market research, training for substitutes and orientation of the substitutes. There are also indirect costs for the company when an employee leaves an organization. This includes the knowledge, abilities, and contacts that employee takes from the company. The turnover influence both employee and organization.
Mowday, Porter, & Steers (2013) described employees experience number of issues such as a need to learn new specific job skills and organization faces the cost of hiring; loss of specific job skills and training new employees. In case an employee leaves the company, this may result in loss of critical knowledge which may be an advantage to potential competitors. Moreover, the negative effects of staff turnover include replacement and training cost, employee separation, reduced productivity and output and disruption the business operations.
Factors that affects employee motivation and retention
When employees leave the organization, it could have the negative effect on the moral of the labor force and on the direction of the organization. Based on the role and responsibilities of the employee, it could have both direct and indirect cost for the organization. Employee retention and satisfaction are two key variables for the organization success. The retention can examine through three different measurements which are mental, social and physical. The social measurement involves the contacts of employees with another individual in the organization both internal and external.
The mental measurement comprises of work attributes as worker capable of adapting working environment and utilizes their skills for the success of the organization and thus, an employee is a human capital for business. The physical measurement comprises of pay and working conditions (Bhatti, Ali, Isa, Faizal, & Battour, 2014).
Pinder (2014) explained that the seven elements which affect the employee retention are the procurement of challenging work, compensation, and appreciation of the performed work, the invitational climate within the company, opportunities to learn and promote, harmony between professional and personal life, constructive relations with work colleagues, communication and Training, and development. The seven reason why employees leave an organization is; the mismatch between person and organization, job or workplace is not as expected by an employee, few growth opportunities, little coaching and feedback, stress from work-life balance and feeling devalued and unrecognized.
Mowday, Porter, & Steers (2013) identified the reason for the staff turnover and discovered that insufficient compensation package, lack of growth opportunities, uninteresting work, better career opportunities elsewhere, lack of appreciation of efforts, insufficient reward, change in economy, change in job focus and scope and poor relationship with management.
Factors that improve employee retention
There are various ways in which organization can minimise the employee turnover. The two approaches are training and development and compensation.
Training and development
Jehanzeb & Bashir (2013) highlighted that the training and development programs can improve the employee retention when such programs are aligned with needs of employees. The training programs influence employees when information provided is considered as applicable, useful and describable by the employees. The key to employee retention is the competence of management, skills development, and reward both financial and psychological.
The organization needs to pay attention to training and development if they want to retain employees. Training is useful to create urge among the employees to stay for longer period. Organization should encourage employee to participate in training program and professional training and career development should be part of organization policies (Elnaga & Imran, 2013).
Compensation and reward
The compensation is the primary factor of employee motivation and directly influences the intention and commitment of the employee to stay with an organization. Compensation is the foundation of employee-employer relationship and shows the indication of expression of appreciation. The increasing competition among the companies demands to retain employees to ensure the sustainability of the organization.
The organization competing for employees to develop competitive advantage and organization development may be at stake if employees lack skills and competencies. The employee retention can be achieved by paying good salaries and thus, competitive benefit and pay package is important for employee retention. The performance-based compensation in which rewarding the employee after evaluation of individual performance (Bryant & Allen, 2013).
What is change management?
Cummings & Worley (2014) stated that in today’s globalized and competitive business environment, change is inevitable and i.e. company needs to carefully manage the change so that organization remain competitive and continue to exist. Change management involves transforming the organization from present state to future state. The change management involves activities and measure in an organization to execute the changes strategies, structure and processes and pattern of behaviours.
According to Ansoff, leadership plays important role in successful change implementation. The change management triggers in an organization due to internal or external forces and change management involves aligning the business to external environment to minimise the impact of change of organization (Boje, Burnes, & Hassard, 2012).
According to Hayes (2014), change management is an approach to shift or transition of the team or organization from current state to future desired state. Organizational change involves both handling human issues as well as managing the change processes. Organizational change has become the pervasive phenomenon due to forces such as political and globalization neoliberalism.
Employee resistance is the major problem associated with the implementation of change and for an organization change, it is important that employee of an organization change. Therefore, the cooperation of employee with organizational change efforts is critical to ultimate success or failure of change management plan (Hayes, 2014).
Types of organization change
Cummings & Worley (2014) stated that the change in an organization can be classified into four categories. The first category is change on the basis of its causes and this could be based on the internal or external forces. The internal forces include culture and strategy and external forces include general business environment (political, social, technological and economics) and task environment (customers, suppliers, and regulators). The second category of change is based on adaption which could be proactive or reactive. In proactive change, organization secures itself from future threats. On the other hand, reactive change is concerned with changes in day-to-day organizational transactions.
Burke (2017) added that the third type of change is based on speed and extent. Incremental change is slow in nature but delivers transformation in the long term. On the hand, transformational or radical change rapidly changes the organization structure and processes. The fourth category of change is based on units, functions, and tasks. This involves structural changes, cultural change, and infrastructural change.
Resistance to Change
Klonek, Lehmann-Willenbrock, & Kauffeld (2014) elaborated that resistance is a reaction of an employee to change and it is a prime reason why change does not get implemented or succeed. As employees play an important role in the implementation of change, i.e. employee resistance has major implication for the organization. The employee resistance to change is critical at all level and two types of resistance are attitudinal and behavior change. The extent of employee resistance includes negative perception, lack of interest, strong opposing views, boycotts, strikes and blocking behaviour (Klonek, Lehmann-Willenbrock, & Kauffeld, 2014).
Models of change management
The three commonly used change management models are Kotter’s 8 step change model, Kurt Lewin change management model and Mckinsey 7-S model of change
Kurt Lewin Change management model
Kurt Lewin proposed three steps change management model and these steps are Unfreeze, change and refreeze. The steps of change involve preparing organization and stakeholders to accept the change (Potter, 2015, pg.13). This involves breaking the status quo and building new way of operating. The diagram below depicts the Lewin change management model
The unfreeze stage involves developing compelling message and focusing on existing way of doing things that cannot be continue. There is need to change the values, beliefs, behaviour and attitude in existing scenario. The second stage is ‘change’ and it addresses the uncertainty created at unfreeze stage. The change involves people begin to resolve uncertainty and work towards new ways of doing things. The status quo should break up and people start to believe and support the new direction. The transition from unfreeze to change stage is difficult to achieve as people take time to embrace new direction.
There is need to communicate how change will benefit them. The two key variables are time and communication as people need to understand the change as well as connected to change through the transition period in an organization. The third stage is ‘refreezing’ which involves consolidating the new ways of working and stick to new practices and procedures. The refreeze stage involves internalize the changes and help people to adapt to new practices (Cameron & Green, 2012).
Kotters (2012) proposed eight steps change management model to bring desire change in an organization. The eight steps include creating urgency, developing power coalitions, creating vision for desire change, communication, empower actions, delivering quick wins, building the change and anchoring the change. The diagram below depicts the Kotter’s change management model
The first step is creating the sense of urgency among all stakeholders around the need for change. This would allow developing support for the change and requires honest, open and convincing dialogues. The second step is creating a guiding coalition to establish a project team which can effectively implement the change. The purpose of the group is to manage all activities and efforts as well as encouraging the employees to cooperate through constructive approach. The third step us creating the vision for change so that everyone understands the purpose of change and achieves desire vision with the agreed time frame.
The purpose of the change is to create more support to implement change. The fourth step is communicating the vision to create support and acceptance among the employees. The vision can be developed and communicated through discussing concerns, opinions, and anxieties among stakeholders (Kotter & Rathgeber, 2016).
The fifth step is removing obstacles which undermine the vision. The communication with stakeholders would allow understanding who are resisting the change. The sixth step is creating short-term wins so that employee has clear idea of what is going on. The acknowledgment and rewarding the efforts of employees who are involved in the change is important for the successful change. The seventh step us consolidating the improvements as short-term wins are only beginning of long-term change (Barrick, Thurgood, Smith, & Courtright, 2015).
The organization must keep looking for the improvements and driven into the overall corporate culture. The eighth step is anchoring the change as change will only become part of the corporate culture then it must be the core of the organization. The value and standards must align with the vision of employee for successful change. The discussion and regular evaluation would allow consolidating the change and employee continue to support the change (Kotter, 2014).
Mckinsey’s 7-S Change model
According to Rothwell (2015), Mckinsey’s 7-S Change model is different from above two change management model and focus on role of coordinator rather structural. The model encloses seven different elements which could be aligned together to achieve productivity and effectiveness at workplace. The seven elements of model include strategy, structure, staff, skills, style, shared value and system. In context of strategy, it defines the key approaches for an organization to achieve its vision. A structure explains the alignment of resources in an organization and among team.
Style depicts the culture of organization in terms of team interaction and leadership. The staff are company employees, remunerations and how are attracted and retained by the company. The skills shows the required technical knowledge and competences to complete the activities and systems are business processes to support the operation. Finally, the shared values summarized the vision of company (Voehl & Harrington, 2016, p.68). The diagram below depicts the Mckinsey 7-Smodel
Factors which facilitate change management plan – Communication and Involvement
According to Matos Marques Simoes & Esposito (2014), communication is an important factor for successful change and emphasizes the need of creating realistic vision using appropriate change team, ideas, responsible for communicating the vision. If people enable to understand the purpose of change then they resist changing required. The resistance could prevent an employee from learning, progressing and adapting new position. Corporate communication plays the vital role in change management and once stakeholders understand the reason behind the change and thus, more willing to cooperate.
Al-Haddad & Kotnour (2015) emphasized that the effective communication plays role in reducing resistance to change as well as ensure teamwork. Kotter (year) stated that communication is an important tool to overcome the resistance by informing people beforehand. The employee should be informed when the change will take place and how it will take place. Kotter stated that communication should be embedded within every phase of to remove obstacles. The effective communication allows setting realistic expectations and overcoming the uncertainties.
Ghitulescu (2013) discussed that employee involvement is concerned with fostering the environment in which person influences activities and decisions that sway their jobs. It is management belief about how a person is enabled to assist the continuous enhancement of employee achievements of their organization.
Holland & Salvo (2012) explained that it is a softer pattern of participation which offers flexibility as well as supposes the commonality of concerns between employee and management. Employee involvement is an ongoing process to increase the employee efforts into rewarding decisions which increases the employee well-being and organizational performance. The four elements which contribute to employee involvement success are power, skills and knowledge, information and rewards. The goals of employee involvement are to increase productivity, to improve communication, to increase employee satisfaction, to increase motivation and to improve the quality of work (Boxall & Macky, 2014).
Summary of Literature review
The literature review evaluates the three important aspects of this research which are change management, employee engagement, and retention. The literature critically reviews the consequences and antecedents of employment engagement and retention along with literature on change management models. The literature highlights that employee motivation, in an organization directly influences productivities, business performance and cost of the organization. Therefore, organisation must motivate its employees for engagement and retention.
Engagement is the positive attitude held by the employee towards the value and vision of the organization The three important factors associated with employee engagement are psychological meaningfulness, working conditions for engagement and safety as well as availability. The fulfillment of these factors means employee themselves self-determined motivated. The motivation theory highlight that employee feel satisfied when derive pleasure from job and resulting their feeling influence attitude towards work and company.
The literature shows that organization culture is made up of more superficial aspects such as observable symbols, patterns of behaviour and ceremonies and it important to consider feelings and beliefs when considering potential changes to organization culture. An engaged employee effectively contributes to business context and actively involves the idea, procedure, product, and service as well as referred to positive working behavior. An engage employee is willing to make effort in their job and display their thinking, values, and feelings in accordance with organization value.
A useful model for employee engagement is JD-R model which explains the job demand and job resources context and its influence on the engagement of employee. Job demand includes those aspects which are important for psychological or physical efforts and job resources are motivation aspects. The manager plays an important role in building confidence and trust through exhibiting coordination and staff experience positive moods. Manager can increase engagement of employee by giving support, autonomy, coaching, recognition, respect and providing development opportunities which are regarded as job resource.
The literature highlight that employee retention is concerned with a deliberate and conscious effort to retain quality employees for the company for efficiency and productivity. The negative effects of staff turnover include replacement and training cost, employee separation, reduced productivity and output and disruption the business operations.
The seven reason why employees leave an organization is; the mismatch between person and organization, job or workplace is not as expected by an employee, few growth opportunities, little coaching and feedback, stress from work-life balance and feeling devalued and unrecognized. Finally, the literature on change management highlight it change involves transition of the team or organization from current state to future desired state. Organizational change involves both handling human issues as well as managing the change processes. Employee resistance is the major problem associated with the implementation of change.
The three change management models are Kotter’s 8 steps change model, Kurt Lewin change management model and Mckinsey 7-S model. The communication and employee involvement are two important facilitator of change in an organisation.
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