1. Chapter 10
Employee Separation and
Retention
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Learning Objectives
LO10-1 Distinguish between involuntary and voluntary turnover,
and discuss how each of these forms of turnover can be
leveraged for competitive advantage.
LO10-2 List the major elements that contribute to perceptions of
justice and how to apply these in organizational
contexts involving discipline and dismissal.
LO10-3 Specify the relationship between job satisfaction and
various forms of job withdrawal, and identify the major
sources of job satisfaction in work contexts.
LO10-4 Design a survey feedback intervention program, and use
this to promote retention of key organizational
personnel.

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Managing Involuntary Turnover 1 of 6
Employment-at-Will Doctrine
• Either the employer or the employee could sever the
employment relationship at any time
• Wrongful discharge suit
• Can be filed as a civil rights infringement if the person
discharged is a member of a protected group
• Paper trail
• Initiating punitive actions short of termination, in an effort to
get the employee to quit on his or her own
• Paying off the employee in excess severance pay in return
for waiving the right to sue for wrongful dismissal
LO 10-1

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Managing Involuntary Turnover 2 of 6
Principles of Justice
• Outcome fairness
• Noncompete clauses
• Procedural justice
• Lack of bias and informational accuracy are the most critical
determinants.
• Interactional justice
LO 10-2

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Table 10.1 Six Determinants of Procedural Justice
1. Consistency. The procedures are applied consistently across time
and other persons.
2. Bias suppression. The procedures are applied by a person who
has no vested interest in the outcome and no prior prejudices
regarding the individual.
3. Information accuracy. The procedure is based on information that
is perceived to be true.
4. Correctability. The procedure has built-in safeguards that allow
one to appeal mistakes or bad decisions.
5. Representativeness. The procedure is informed by the concerns
of all groups or stakeholders (co-workers, customers, owners)
affected by the decision, including the individual being dismissed.
6. Ethicality. The procedure is consistent with prevailing moral
standards as they pertain to issues like invasion of privacy or
deception.

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Table 10.2 Four Determinants of
Interactional Justice
1. Explanation. Emphasize aspects of procedural fairness
that justify the decision.
2. Social sensitivity. Treat the person with dignity and
respect.
3. Consideration. Listen to the person's concerns.
4. Empathy. Identify with the person's feelings.

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Managing Involuntary Turnover 3 of 6
Progressive Discipline and Alternative Dispute
Resolution
• Termination should come about at the end of a
systematic discipline program.
• Documentation
• Punitive measures
• Alternative dispute resolution (ADR)

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Table 10.3 An Example of a Progressive
Discipline Program
OFFENSE
FREQUENCY
ORGANIZATIONAL
RESPONSE
DOCUMENTATION
First offense Unofficial verbal warning Witness present
Second offense Official written warning Document filed
Third offense Second official warning,
with threat of temporary
suspension
Document filed
Fourth offense Temporary suspension and
“last chance notification”
Document filed
Fifth offense Termination (with right to go
to arbitration)
Document filed

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Table 10.4 Stages in Alternative Dispute
Resolution
Stage 1: Open-door policy
The two people in conflict (e.g., supervisor and subordinate) attempt to arrive at a
settlement together. If none can be reached, they proceed to
Stage 2: Peer review
A panel composed of representatives from the organization that are at the same
level of those people in the dispute hears the case and attempts to help the parties
arrive at a settlement. If none can be reached, they proceed to
Stage 3: Mediation
A neutral third party from outside the organization hears the case and, via a
nonbinding process, tries to help the disputants arrive at a settlement. If none can
be reached, the parties proceed to
Stage 4: Arbitration
A professional arbitrator from outside the organization hears the case and resolves
it unilaterally by rendering a specific decision or award. Most arbitrators are
experienced employment attorneys or retired judges.

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Managing Involuntary Turnover 4 of 6
Employee Assistance and Wellness Programs
• Employee assistance program (EAP)
• Usually identified in official documents published by the
employer (such as employee handbooks).
• Supervisors (and union representatives, where relevant) are
trained to use the referral service for employees whom they
suspect of having health-related problems.
• Employees are also trained to use the system to make self-
referrals when necessary.

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Managing Involuntary Turnover 5 of 6
Employee Assistance and Wellness Programs
continued
• Employee wellness programs
• Focus on trying to prevent health-related problems
• Some companies take a punitive approach.
• How important is an employee’s health to the performance of
the job?

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Managing Involuntary Turnover 6 of 6
Outplacement Counseling
• Helps dismissed employees manage the transition
from one job to another.
• Includes career counseling, job search support,
résumé critiques, job interviewing training, and
provision of networking opportunities
• Reduces likelihood of litigation by former employees

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Managing Voluntary Turnover 1 of 8
Voluntary Turnover
• Support former employees’ transition into alternative
employment
• Preventing employees who are highly valued by the
organization from leaving
• Drivers of retention
• Pay and job security
• Benefits
• Work environment
• Opportunities for development

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Figure 10.1 An Overall Model of the Job
Dissatisfaction–Job Withdrawal Process
Jump to long description in appendix

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Managing Voluntary Turnover 2 of 8
Process of Job Withdrawal
• Behavior change
• Can lead to supervisor–subordinate confrontation
• Whistle-blowing
• Physical Job Withdrawal
• Psychological Withdrawal
• Low level of job involvement
• Low level of organizational commitment

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Managing Voluntary Turnover 3 of 8
Job Satisfaction and Job Withdrawal
• Job satisfaction
• Function of values
• Different employees have different views of which values are
important
• Perception
• Influenced by frame of reference
LO 10-3

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Managing Voluntary Turnover 4 of 8
Sources of Job Dissatisfaction
• Unsafe working conditions
• Occupational Safety and Health Act of 1970 (OSHA)
• The nature of the work in a job makes managing safety-
related perceptions critical.
• Protecting workers and ensuring their safety is particularly
challenging when trying to manage overseas operations.

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Managing Voluntary Turnover 5 of 8
Sources of Job Dissatisfaction continued
• Personal Dispositions
• Negative affectivity
• Tasks and roles
• Strong positive relationship between task complexity and job
satisfaction
• Job rotation

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Managing Voluntary Turnover 6 of 8
Sources of Job Dissatisfaction continued
• Prosocial motivation
• Supervisors and co-workers
• Pay and benefits

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Managing Voluntary Turnover 7 of 8
Measuring and Monitoring Job Satisfaction
• Workers’ self-reports
• Job Descriptive Index (JDI)
• Pay Satisfaction Questionnaire (PSQ)
• Pulse surveys

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Managing Voluntary Turnover 8 of 8
Survey Feedback Interventions
• Employee survey research
• Employee satisfaction surveys
• Allow company to monitor trend over time
• Provide a means of empirically assessing the impact of
changes in policy or personnel
• Allow company to compare itself with others in the same
industry along these dimensions
• Allow company to check for differences between units
and benchmark “best practices” that might be
generalized across units
• Tool for uncovering systematic concerns that are driving
retention problems
LO 10-4

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Appendix of Image Long
Descriptions

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Figure 10.1 An Overall Model of the Job
Dissatisfaction–Job Withdrawal Process
Causes of job dissatisfaction include personal disposition,
tasks and roles, supervisors and co-workers, and pay and
benefits. Manifestations of job withdrawal include behavior
change, physical job withdrawal, and psychological job
withdrawal.
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