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1、Middle-East Journal of Scientific Research 16 (11): 1532-1541, 2013 ISSN 1990-9233 © IDOSI Publications, 2013 DOI: 10.5829/idosi.mejsr.2013.16.11.12044Corresponding Author: Anantha Raj A. Arokiasamy, Quest Internati

2、onal University Perak (QIUP), Faculty of Business,Management and Social Sciences (FBMSS) No. 227, Plaza Teh Teng Seng (Level 2),Jalan Raja Permaisuri Bainun, 30250 Ipoh, Perak, Malaysia. 1532A Qualitative Study on Cause

3、s and Effects of EmployeeTurnover in the Private Sector in MalaysiaAnantha Raj A. ArokiasamyQuest International University Perak (QIUP), Faculty of Business, Management and Social Sciences (FBMSS) No. 227, Plaza Teh Teng

4、 Seng (Level 2), Jalan Raja Permaisuri Bainun, 30250 Ipoh, Perak, MalaysiaAbstract: The term “employee turnover” is an important metric that is often central to organizations’ workforce planning and strategy. The reasons

5、 why employees leave their current positions; not just the fact that they leave have crucial implications for future retention rates among current staff, job satisfaction and employee engagement and an organization’s abi

6、lity to attract talented people for job vacancies. The impact of turnover has received considerable attention by senior management, human resources professionals and industrial psychologists. It has proven to be one of t

7、he most costly and seemingly intractable human resource challenges confronting several organizations globally. The purpose of this research is therefore, to find out the actual reasons behind turnover and its damaging

8、effects on the productivity of manufacturing industries in Malaysia. To explore turnover in greater detail, this article will examine the main sources of employee turnover, its effects and recommend some strategies on ho

9、w an organization can retain employees and reduce employee turnover.Key words: Employee turnover Sources Effects Causes and strategiesINTRODUCTION Literature Review: [2] defines employee turnover as theWith the effect

10、 of globalization in the world, it has departure of existing employees from the organization”. been touted that every organization will have to The researcher will use the term departure of existing manage their

11、 employee turnover methodically. employees interchangeably with voluntary separation or To meet the basic necessities of offering a safe exit. [3] defined turnover rate as how many new environment, good pay

12、 and benefits in an economic recruitments were hired to replace resigned employees. way is very difficult and cumbersome to an By these definitions, turnover ‘occurs’ only when a organization. Every organiza

13、tion wished to have high replacement is successfully hired. A similar definition is productivity, fewer turnovers and to be profitable. provided by [4] who state that turnover means voluntary Managing turnover successf

14、ully is a must to achieve cessation of membership of an organization by an the above goals. Studies have also been carried out employee of that organization. Another study suggests regionally and globally to explore an

15、d to study the that employee turnover is the rotation of workers around relationship between various variable(s) with employee the labor market, between different companies, turnover. These studied variables inc

16、lude occupational occupations and jobs and also between states of content, leadership styles and job satisfaction [1]. The employment and unemployment [5]. In an organizational literature on employee turnover is divided

17、into three context, turnover can be defined as the termination of an groupings: types of employee turnover, causes of employee’s intraorganizational career trajectory, which is employee turnover and strategies to minimiz

18、e employee composed of a sequence of job changes from job entry to turnover. exit [6].“entrance of new employees into the organization and theMiddle-East J. Sci. Res., 16 (11): 1532-1541, 20131534Organizational Factors:

19、High turnover in an organization can be used to predict the labor turnover in the market.has been attributed to instability in the management of an Good local labor market conditions improve organizationalorganization. E

20、mployees are more inclined to stay and stability [37]. According to [38], many large organizationswork when the organization is stable and the work are able to retain employees mainly because of their sizeenvironment is

21、consistent [30]. In organizations where and also providing better chances for advancement withthere was a high level of inefficiency there was also a high higher salary and benefits ensuring smooth careerlevel of staff t

22、urnover [31]. advancement. Links to the organization are theEmployees are more susceptible to work in an relationships that the individual has with the organizationorganization when predictability and stability is in for

23、ce (e.g., department, work team) and the relationships thatand consistent career growth will minimize employees they have with others at work (e.g., coworkers, boss,from switching to other organization. The imposition of

24、 a mentor). The links to the community include the ties thatquantitative approach to managing the employees led to the individual has in the area especially with friends,disenchantment of staff and hence it leads to labo

25、r relatives and organizations. Fit with the organizationturnover. Therefore management should not use assesses how the individual perceives their work in thequantitative approach in managing its employees. organization a

26、nd whether the individual feels that there isAdopting a cost oriented approach to employment costs congruence between what she wants to do or can do andincreases labor turnover [32]. All these approaches wha

27、t she is actually doing. However [39] state thatshould be avoided if managers want to minimize employee “turnover may matter more in organizations where jobs areturnover. Employees have a strong need to be informed. not

28、standardized and procedures do not exist forPracticing strong communication system between transmitting knowledge to new members” (p. 922).employees and employer could ultimately lower turnoverof staff [33]. Employees fe

29、el comfort-able to stay longer, Causes of Employee Turnoverin positions where they are involved in some level of the Job Satisfaction: Job satisfaction was related todecision-making process. That is employees should full

30、y resignations [39-41]. Thus employees having jobunderstand about issues that affect their working dissatisfaction leave their current employer more easily.atmosphere [34]. But in the absence openness’ in sharing [42, 43

31、] gave us an idea about the relationship betweeninformation, employee empowerment the chances of job satisfaction and turnover is stronger when the timecontinuity of employees are minimal. [35] points out span betwe

32、en administration of the questionnaire andthat a high labor turnover may mean poor personnel assessment of the turnover is shorter [44, 45] found thatpolicies, poor recruitment policies, poor supervisory military personn

33、el have strong binding relationship withpractices, poor grievance procedures, or lack of his job satisfaction and retention as compare to civilians.motivation. All these factors contribute to high employee The relation b

34、etween job satisfaction and employeeturnover in the sense that there is no proper management turnover is reciprocal to each other and this relationshippractices and policies on personnel matters hence is high when unempl

35、oyment rate is low in the society andemployees are not recruited scientifically, promotions of similarly low when unemployment rate is high. As [46]employees are not based on spelled out policies, no explained “Even thou

36、gh people are not satisfied with theirgrievance procedures in place and thus employees jobs, they will be less likely to quit if there are fewdecides to quit. alternatives”.Job related Factors: Presently, there has littl

37、e empirical Pay: According to [47], pay is something given inevidence which suggests that diversity of employee will exchange for services rendered in an organization. It hasreduce turnover. There are instead much eviden

38、ce to an important role in retaining and rewarding high qualitysupport employee turnover due to poor management and employees but at the expense of the overall labor costs forlack of consistent evidence to support why em

39、ployees any organization. Also, by binding pay with performance,leave one organization and move to another [36] argue an employer can monitor and control specific activitiesthat employees quit from organization due to ec

40、onomic and level of performance. Sourcing specific talents for areasons. Using economic model they showed that people niche job can be overcome by recruiting talents across thequit from organization due to economic reaso

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