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The purpose of preparing this essay is to discuss retaining best employee is somewhat
crucial for organization’s development. This essay also focuses on the way managers can
maintenance.
In the present scenario, Human resource is one of the most vital assets for a company.
The world has now realised that the human capital of a company has to be treated with
care, or else the company will be the loser in the end. There is nothing more valuable in a
company than a valued employee who has been providing them with their priceless
employee who has been working for the company for a long time. This is true for many
reasons:
First of all, research has shown that it is 35% more expensive for a company to
Experienced employees knows a lot about the ins and outs of a company and that
knowledge can never be replaced with a new recruit, no matter what the new
employee with a new one costs a lot of loss of time. Because, not only that the
company then has to hire new employees, it has to train them to make them edible
(rohitminton@http://www.contentwriter.in/articles/hr/employee-retention-tools.htm)
Therefore, a company should always look more to retain employees than to hire new
employees to ensure efficiency and development. For that the company has to take care
of their existing employees. The company has to realise that existing employees are true
assets to the company, like any others valuable parts of the organization. The company’s
human resource management system has to always consider creating the best working
condition for the existing employees. The existing employees should always be given the
necessary and effective motivation, so that they can feel that it is worth working for the
organization.
This report looks for ways to create that kind of motivation – how existing employees can
be motivated to stay loyal to the company. This approach will ensure the company’s
Managers have to always motivate their employees to get the best performance. There
have been a number of motivation theories – theories that were intended in developing a
model that helps motivate people. Managers can take reference of those models, but
ultimately it is their intuition and practical, personal experience that will help them on
their way to motivate the ones who are working under them. Employees are experienced
and educated they anticipate more extrinsic and intrinsic reward in their workplace. There
are many theories for motivating employees; all theories can be classified in two broad
categories. They are the content motivation theory and the process motivation theory.
Among the number of theories and models based on motivation, these are some of them:
5. Equity theory
….
These theories, although are theories based on critical analytical research done by great
thinkers, each of them has their disadvantage, limitation, variance in application and
debate in appropriateness.
The Maslow’s Hierarchy theory for one is too simple to work with in different complex
situation and to some extent a little vague. It says that one person will be motivated to do
a certain level of job if that person is given the appropriate reward and compensation
(salary, status, power etc) of that position, but it does not say what actually the rewards
and compensation are. Different person has different perception about what that person
needs for him/her to be working in a position. For example, if a job offers a salary of
$4000 per month and free gas for car, one employee might be very much satisfied with
those setoff benefits, where as another employee might feel that’s its not enough to keep
someone in that job; that employee might feel that this job needs a larger set of benefit
(bigger salary or medical expenditure back up etc) However, with this theory one can
make intuitive judgement about what employees in general might want. That way, this
theory might help managers to motivate and retain old employees by giving them enough
benefits that they want. However, managers need even more complex models or theories
Another disadvantage of this theory is that it says that if people meet one level of needs,
he has the incentive to go for the next level. This is not true for all cases; not all people
go through the same pyramid of needs. The hierarchy might change from person to
person. One can be interested in esteem reeds right after safety needs (if that person is
very individualistic and someone who doesn’t care about the people around him much.
So from one person to another person, the theory might result in different need hierarchy.
Managers need to understand each emplyees’ need hierarchy to understand exactly what
explains to some extend, why an employee can lose productivity and performance in the
workplace. It helps managers understand that if they cannot give the employees their
desired benefits to be in a job, they might feel that doing the job to get those benefits is
not worth it and concentrate on minor things in life which results in lack of attentiveness
However, this theory still doesn’t fixate exactly what each employee want, so in
understand each employees wants and demands in a job this theory doesn’t help much.
McCellend’s acquired need theory is a bit more helpful in understanding the motivation
of the employees. With this theory managers can identify which employee is driven by
which need and deal with them with their needs. An employee who is driven by the need
for achievement will be good enough to do a job that involved critical problem solving,
like understanding consumer needs, designing an operation etc. The employee who is
driven by the need for affiliation will do best in team works where interpersonal
communication and interpersonal chemistry is important. The employees with the need
for power on the other hand should be given jobs that involve directing and leading a
group of people. This theory helps managers understand which job will give an employee
This theory gives managers directions into employees’ mental structure. However,
managers need even deeper mental picture of the employees to motivate them properly.
Herzberg’s two-factor theory gives another process through which employee gets
motivation. This theory helps managers understand what the absolute necessary things
that employees need to get motivated are. This theory helps the managers understand the
satisfiers and dissatisfiers in the work place. Dissatisfiers are bound to be achieved and
However, like Maslow’s and Alderfer’s theory this theory does not take into consideration
other workers. Equity is achieved when the ratio of employee outcomes over inputs is
equal to other employee outcomes over inputs. (Adams, 1965) It is important when
striving to improve an employee’s job satisfaction, motivation level, etc., and what can be
done to promote higher levels of each. Adam's Equity Theory is a very practical theory
that can and should be used in companies on a daily basis. The disadvantage of this
However, much like the five levels of needs determined by Maslow and the two factors
theory of motivation states that positive outcomes and high levels of motivation can be
Vroom's Expectancy theory is based on the belief that employee effort will lead to
performance and performance will lead to rewards (Vroom, 1964). Rewards may be
either positive or negative. The more positive the reward the more likely the employee
will be highly motivated. Conversely, the more negative the reward the less likely the
need to understand what motivates employees within the context of the roles they
perform. Of all the functions a manager performs, motivating employees is arguably the
most complex. Also, as employees get older, interesting work becomes more of a
motivator.