Management and Organizational Studies 4485F/G : Chapter 7.docx
7 Dec 2012
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Chapter 7 managing employee engagement and performance. Not every executive understands the need to generate the satisfaction and loyalty among employees: retention rates among employees are related to retention rates among customers, direct link between retention rate and sales growth, routinely outperform their competition. Job satisfaction and retention are also related to organizational performance. Focus on avoiding voluntary turnover: turnover initiated by employees (often whom the company would prefer to keep) At organizational level, turnover results in lowered work unit performance, in turn, harms the firm"s financial performance: especially when organization is losing its top performers. In organizations that rely on teams or long-term customer contacts, the loss of workers who are central to employee teams or customer networks can be especially disruptive. Replacing workers is an expensive undertaking: costs 50,000 for professional, 2500 for clerical or manufacturing employees, replacement costs are tip of the iceburg.
