A Study on Employee Retention Practices

Topics: Culture, Organizational studies, Organization Pages: 10 (2819 words) Published: July 9, 2013
A Study on the Impact of Organization Culture with regard to Employee Retention in Engineering Units around Coimbatore


“When the world was going through recession and industries were preparing for a deep slow down, Tata Steel was faced with wage revision which was due during economic slowdown. However, Tata Steel went ahead as there was a commitment for timely revision of wages,” according to The Business Standard. This act of Tata Steel unfolds a saga of trust and co-operation bounded by a firm belief that quality of Employee relations is fundamental to economic prosperity. No business can be separated from the culture it operates in.

According to the various HR experts and professionals, the prime reasons of present high attrition rate in all sector is due to the rising and unsatisfied aspirations of the employees. This article highlights the issue on the employee retention in Engineering Units around the city of Coimbatore influenced by the organizational culture. In this study suggestions are given based on the previous reviews done on the same.

Keywords: attrition rate, retention, employee relation.

Today there is a huge demand in the public and private sectors for workers in critical areas such as Healthcare, IT, Engineering, Real Estate, Automobile and Manufacturing Industries, Banking and Financial Services, FMCG. The supply of qualified workers is limited and good workforce planning requires a twofold approach they are: Aggressive Recruitment and Innovative Retention Strategies. The base of the organization revolves around the development of shared meanings, beliefs, values and assumptions that guide and are reinforced by organizational behaviour. Employees are considered as an important asset to the organization. Culture is the environment that surrounds employees at work. Culture most commonly refers to ways of thinking, values and ideas of things rather than the objective, concrete and visible part of an organization. Organizational culture has influenced employee retention and it is a major determinant of an employee’s efficiency and effectiveness in carrying out their jobs and stay in the organization. Organizational culture is based on the history and tradition of the organization. It is the ability of the employee to adapt to the organization’s tradition and systems that will enable the employee to stay back in the organization. Therefore this study will concentrate on organizational culture as a major factor which influences employee retention.

Dimensions of Organizational Culture:
Seven dimensions were used to compare the culture across organizations by Jones, Chine and Ryan (2006). • Innovation and Risk taking
• Outcome Orientation
• People Orientation
• Individual vs. Team Orientation
• Aggressiveness
• Attention to detail
• Stability
The strength of an organization’s culture will depend on the importance placed on its core values as well as on the degree of consensus that exit with regard to those values. Organizations with strong cultures tend to have few core values that are seen as important guiding principles and are widely shared. There are dominant cultures and different subgroups found in an organization and culture differences can be found in those subgroups within an organization as well. The stronger an organization’s dominant culture, however, the less variability one would expect across groups within organization. Importance of organizational culture:

Culture can affect the business outcomes in many ways both positive and negative. Culture that is not aligned with the strategies of industries can lead to Employee Retention because of lack of motivation. Organization Culture is more than just an internal phenomenon. A company’s culture becomes a very important part of company’s brand. EMPLOYEE RETENTION:

As Organizations began to understand the impact of Employee Turnover, a management tool was developed...

References: Print:
Sheridan.J.E.(1992) ‘Organizational Culture and Employee Retention’, Academy of Management Journal, Vol
Christian Vandenberghe (1999), ‘organizational culture, person-culture fit, and turnover: a replication in the health care industry’, Journal of Organizational Behavior, Vol. 20 pp.175-184.
Fahad Abdali (2011), ‘Impact of Employee Turnover on Sustainable Growth of Organization in Computer Sector of Karachi, Pakistan’, Afro Asian Journal of Social Sciences, Vol. 2 No.2 pp.1-27.
Agung Nugroho Adi (2012), ‘ Driving Performance and Retention to Employee Engagement: A Case Study in University of Brawijaya’, Journal of Basic and applied Scientific Research, Vol.2 No.1 pp.338-350.
Muhammed Naeem Tariq and Prof. Dr.Muhammed Ramzan (2013),‘The Impact of Employee Turnover on the Efficiency of the Organization’, Interdisciplinary Journal of Contemporary Research in Business, Vol.4 No.9 pp.700-711.
Mats Alvesson and Stefan Sveningsson (2008) Changing Organiazational Culture: Culture Change Work in Progress, 1st ed., Routledge, Oxon.
Marie-Joelle Browaeys and Roger Price (2008) Understanding Cross-Culture Management, 1sted, Pearson Education Ltd, United Kingdom.
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