EMPLOYEE MOTIVATION & RETENTION

STRATEGIES AT MICROSOFT

Submitted By: Muhammad Omair

STU 22782

Submitted To: IBAM

Supervised by: JasimUddin

LIBAMMBAW010G

Word Count: 4,356

1. Introduction
Now a day’s organisations are strongly focusing on employee motivation and retention. Due
to market opportunities and competition it is employees have different options to swap
organisation. These days organisations are finding it very difficult to very difficult to keep
individual and team motivation high (Payne, 2007). Organisation bears huge cost when
employee leaves (Fitz-enz, 1997). Organisations are now considering employees motivation
and retention as strategic business issue. Motivation and retention is integrated to the
organisation culture. The aim of this case study is to critically analyse the Microsoft
organisational culture and issues faced by Microsoft in terms of HR practices. This case study
comprised of three sections. First section highlights the literature review on organisation
culture, motivation and retention, and some core issue related to communication, benefits,
and performance appraisal. Second section is addressing to application of knowledge, while
third section talk about crucial Examination and conclusion. Core focus of case study is on
Microsoft organisational culture and motivation & retention practices practiced by them.
Microsoft was facing employee motivation and retention problems after 1990. Over the
period of time they revised their HR practices related to these issues. In 2006 Microsoft
announced My Microsoft program, the focus of this program was on performance review
system, employee benefit plans and communication.

2. Literature Review
With the advancement and innovation of modern technology, world is turning into global
economy, organisations are growing rapidly and resulting in changing culture, which is
leading to the motivation and retention problems (Egan et al, 2004). Organisations are
considering employee motivation and retention as strategic business issue these days. Over
the past few years organisations are finding it very difficult to keep the individual and team
motivation high (Payne, 2007). Now days every organisation is concerned with, increasing
employee commitment, loyalty, motivation and retention. It is very difficult to motivate and
retain employees, especially in the time of change. Organisation are constantly working in
these areas and formulating different types of strategies to motivate and retain employees.
Money is major factor for motivation and retention however there are other important factors
such as recognition, delegation of authority, encouragement, fairness etc. Motivation and
retention is about more than money (Cosack et al. 2010). Result of survey in which 1500
employees participated, highlighted the recognition as motivator factor at work place
(Robbins, 2003).It is very difficult to retain employees if they are not properly rewarded and
recognised.
Organisations are bearing huge cost in terms of employee leaving. Fitz-enz (1997) argued
that the average company bears a cost of approximately $1million with depart of every 10
managerial and professional employees. When organisation loses its key employees it also
loses the knowledge and expertise thus leaving significant impact on organisation. This
knowledge was capable of fulfilling the need and expectations of the customers (Ramlall,
2004). So the knowledge management is linked with employee retention and employee
retention with motivation and loyalty. Snell and Dean (1992) stated that people own skills,
experience and knowledge and therefore are considered assets to the organisation. Employee
motivation and retention is also integrated with the level of job satisfaction and job
satisfaction is enormously effected by organisation culture.
Culture is the main driving force for employee motivation and retention. Ryan (2005)
defined culture as shared guiding beliefs and values held by those within the organisation.
Over the period of time there may be different sub cultures in organisation as it grows in size.
If culture is linked with organisational goals then it plays a vital role in accomplishment.
Robbins, (2003) stated that a strong organisation culture have strong effect on employee, if
culture is strong it support high ethical standard and have strong impact on employee
performance and behaviour. He further stated that employee considers the management
behaviour as bench mark if they are following ethical road then it communicate ethical
expectations. Egan et al. (2004) stated that organisation culture and job satisfaction influence
motivation to transfer learning and turnover. With the passage of time organisation may have
different sub culture and needs realignment of culture. Levin and Gottlieb (2009) argued that
organisation culture can be an insurmountable hurdle in implementing strategic change in
organisation. They further argued that leaders are the one who decide and initiate change
however they need to communicate about the change and strategy. Any change in
organisational structure, technology, people or strategy causes disruption (David, 2003). The
disruption is due to the resistance by people. People resist change. People resist because they
fear economic loss, inconvenience, uncertainty and a break in normal social patterns (David,
2003). Change can be managed by communicating it to the employees. David (2003) stated
change can be managed by using force strategy, educative change strategy, and self interest
change strategy. Hofstede (1980) also argued about uncertainty avoidance i.e. people avoid
uncertainty. Put figure 1 here Successful CEOs understand the relationship between
behaviour, strategy, and high performance, and they place these elements at the heart of
organisation, to ensure that culture is source of competitive advantage. Levin (2009) and
Gottlieb (2009) both have developed six principles and eight practices for realigning the
organisational culture for optimal performance. Put figure 2 here.
Communication plays vital role in organisation, company vision, mission, employees
responsibilities, feedback all are conveyed through communication. Communication
encourages motivation by clarifying to employee what is to be done, how they are doing and
what can be done to improve performance and job satisfaction (Robbins, 2003).
Communication is one of the most effective ways to develop a strong relationship and forge a
sense of fulfilment in organisation (Evan, 2008). Organisation should have open
communication system and employee should be communicated about good and appalling
things, this will leads to large amount of self respect to both organisation and to individual
(Berger, 2009).
Every company is trying to motivate and retain its employees in order to achieve its
goal and to gain competitive advantage. However it is very important to understand the
factors that motivate employees. Maslow (1943 cited in Ramlall 2004) hypothesized that
there are set of five needs-physiological, safeties, social, esteem and self actualisation as
when one need is substantially satisfied next need becomes dominant. however Robbins
(2003) stated that Maslow’s (1943) proposed the prime focus should be on the understanding
the present level of hierarchy of the person and focusing on satisfying his or her needs at
present level or above that level. However Herzberg (1968 cited in Jasim ud din 2010)
articulated these needs in different way. Herzberg (1968) proposed Hygiene as [extrinsic or
context] factor which are necessary but not sufficient for motivation e.g. company policy,
administration, supervision and salary etc. If hygiene factors are satisfactory, neither it will
dissatisfied; nor it will satisfy people they will be neutral. The factor which acts as motivator
[intrinsic or content] to people are praise/award, encourage participation, work balance and
delegation of responsibilities. Some employees are motivated by intention to achieving goal
and task assigned to them.
When people are working together, they try to compare their work for many reasons e.g. for
satisfaction, improvement, fairness etc. Individuals have tendency to relate their efforts and
results with others to eliminate any inequities (Adams 1963, cited in Ramlall, 2004, p.55).
Individual are always concerned about what they receive, in response to their efforts and tend
to compare with other. The comparison is base on inputs such as skills, competence,
education etc with outputs like salary level and recognition. Based on this comparison when
individual feels inequity they become frustrated and de-motivated, as they meant organisation
to be fair (Robins, 1993).If employee perceive that organisations reward system is not fair
and equity based. Then they may reduce their inputs effecting output work. They may try to
increase output in order to get high salary level or recognition. If the situation prevails for
long time then employee leaves the organisation. This can cost organisation and increases
turnover rate (Ramlall, 2004). Refer to appendix for reasons of high turnover.

3. Application of knowledge
Microsoft organisation was unable to cope with the change as organisation grew
rapidly in late 1990’s. And the element of challenging environment, innovation,
encouragement was ignored by organisation with de-motivated employees. Employee’s
psychological behaviour was affected because initially they were working in environment
where innovation, encouragement and challenging environment was part of culture. This was
abrupt change in culture and employee recognition and encouragement was ignored which
brought level of employee down the order. Robbins (2003) argued on Maslow’s theory that
we need to identify present level hierarchy of employee and focusing on satisfying their
present level need or above that level. So that level was not maintained after late 1990’s so
they were de-motivated and performance went down. Put table 1 here.

Company’s centralised style was serious concern to the employee’s as they were not
involved in decision making at any level. Employees were not valued by involving the in
decision making. Herzberg (1968) argued that the internal motivator factors which leave to
job satisfaction like encourage participation responsibility, and involvement in decision
making effects employee motivation and performance, however the Microsoft leadership
denied this fact and did not involved them in decision making so company was adversely
effected by this. By avoiding the employee participation in decision making even from top
management, employee perceived they are not valued and are not part of organisation. If the
people don’t feel important, they are not motivated and will leave (Herman, 2005).

When organisation grows rapidly then it may have different cultures, and if
management is unable to manage the change then issue will surface. Microsoft also grew
rapidly and was unable to cope with change so ethical issue surfaced. Like racial
discrimination, this was the point when African American employees felt that they are not
equally treated in term of compensation, performance, promotion and termination. So they
took company to the court. Ramlall (2004) & Robbins (1993) have also presented the same
idea by arguing on equity theory that if employee feels they are not treated fairly and
equitable then they are de-motivated and try to reduce that cause. So the Microsoft uncared
for the Adams (1969) concept for treating people fairly or equitable manner and faced even
worse situation in court.

Company faced another ethical issue related to antitrust proceeding by DoJ and EU.
This lawsuit also negatively effected company image and de-motivated employees as its
stock price fell 44.1 % in four months. Although Microsoft taken steps to change it corporate
culture to improve public image and to tell people company respect people outside and they
are doing a lot for them, however received strong criticism from external factors like
competitors and media. Robbins (2003) argued that employee perceives management as
bench mark and if they follow high ethical value then it communicates ethical expectations.
.In 2000 company faced another ethical issue related to its business in context to window
2000. It wasn’t able to attract much customer due to bugs in product, it was company
responsibility to maintain business ethics standards and remove possible bugs before
launching. This resulted in low profit margin and de-motivated employees and investors as
well. Cullinan et al (2007) argued that if organisation practices high standards of ethics in
business decision, it is less likely to face ethical behavioural questions. Also Robbins (2003)
argued that if organisation culture is strong it support high ethical standard and have strong
impact on employees’ behaviour and performance. So ethical issues during late 1990’s and
2000 effected employee motivation and increased turnover.

In 2004 Company announced cost cutting program in which company reduced

discount on stock, changed reselling policy, strict vacation plan for new employees and
payment plan for certain brand. Employee expectations gone done and were de-motivated by
cost cut program. Armstrong (2006) argued that new expectations are added to psychological
contract as perception about employer commitment is evolved. So employees were not
expecting such actions from organisation, also management was not aware of such abrupt
reaction from employee. David (2003) argued that people resist change. People resist
because they fear economic loss, inconvenience, uncertainty and a break in normal social
patterns. This change was not properly communicated by top management and survey of
organisation stated everything is running smoothly. Wrong information’s were presented and
employees were not communicated about cost cutting issues before or during decision
process. Evan (2008) stated that communication is one of the most effective ways to develop
a strong relationship and forge a sense of fulfilment in organisation.

Cost cut option changed stock option, elimination of towel scheme these factors de-
motivated employees. Herzberg (1968) argued that if hygiene factors are not sustainable then
they will not motivate people. So cutting in employee benefits cost organisation huge as
employee found now charm in company and turnover gone up to 9.4%. Also Baker et al.
(1988) argued that profit sharing plans are popular amongst employees because they increase
the level of compensation and are do not requires individual performance measurement.

Less vacation for new recruit was another reason for de-motivation and turnover. It
was not based on equity and fairness. People try to relate their efforts, contributions and
results in relation to others and then respond to eliminate any inequities (Adams 1963, cited
in Ramlall, 2004, p.55). And it is regarded as barrier in recruiting new talent as organisation
is meant to balance between employee’s work life and home life. Organisations need to make
realize employees that their interest, goals, working style and experiences are valued and
supported by organisation if this is not the case then employees prefer to leave (Employee
recruitment & retention handbook, 2001, p.222). Organisation which are providing benefits
like flexible in work hour, elder care help, elastic arrangement, job contribution adoption
benefits, pet care, employee helpline and even lawn service referral they face less turnover
(David, 2003). Because now day employee’s expect lot from organisation to care about their
issues and wants
During the period in which organisation faced antitrust proceeding, organisation tried
to change its corporate culture. And tried to convey people outside organisation that company
is working for them and value them however were not successful because of external factors
influenced people, such as media and competitors. Goals tell employee what needs to be done
and how much effort will be needed. So specific and difficult goals, when accepted gives
high result than easy goal. Performance can be higher if followed by feed back (Robbins,
2001). Microsoft’s performance review system named forced curve was based on equity and
fairness, as number of employees those could get at best ranking were fixed. As the number
of employees to get top ranking was just five. So employees were always concerned about
personal likeness and relationship with managers. People are motivated when they expect that
their contribution will lead to goal accomplishment and they will be rewarded for their work
(Armstrong, 2006). If employee perceive that organisations reward system is not fair and
equity based. Then they may reduce their inputs effecting output work. They may try to
increase output in order to get high salary level or recognition. And if the situation prevails
for long time then employee leaves the organisation. This can cost organisation and increases
turnover rate (Ramlall, 2004). Microsoft implemented performance review system in 1980’s
and did not review this system. . However Grote (2000) argued that performance appraisal
system should be constantly monitored, and it can be revised according to a company value
and should be communicated to appraiser.

Microsoft cut the employee benefits without communicating to them which lead to
de-motivation and high turnover in organisation. Especially change in stock option and
stopping towel highly frustrated the employee. Baker et al. (1988) argued that profit sharing
plans are popular amongst employees because they increase the level of compensation and do
not requires individual performance measurement. David (2003) also argued that people
resist change. People resist because they fear economic loss, inconvenience, uncertainty and a
break in normal social patterns. This change was not properly communicated by top
management and survey of organisation stated everything is running smoothly.
4. Crucial Examination
4.1 Microsoft Organisational Culture
Microsoft has been facing issues in HR strategies and practices in term of employee
motivation and retention since 1990. These problems started surfacing in late 1990’s when
Microsoft was growing rapidly and started influencing its culture. The culture for which
Microsoft was known; the culture which always encouraged innovation, challenging
environment and risk taking. But with the rapid increase in it size Microsoft lost its work
culture. This changing factor seriously effected the employee’s motivation as they were not
used to this environment their expectation went down, their psychological behaviour was
affected. Microsoft was unable to identify and focus on the present level of employee’s need
which has adversely affected the employee motivation and performance. This idea is also
supported by Robbins (2003) and Maslow (1943).

Reason why Microsoft did not consider the change might be they wanted to maximise
their profit and market share at any cost. This could be strong reason because majority of
decisions were taken by company head. Employees were not happy about increasing
centralised decision in organisation. They were not involved in decision making at any level.
When people are not valued in term of responsibilities, decision making they were concerned
and de-motivated. Herzberg (1968) also argued those motivator factors are source of
motivation and should be focused. Although Microsoft tried to change these practices by
delegating more authorities to mangers at corporate level, still they were not able to attain
desired result because they only focused corporate sector in power sharing and did not
considered the middle level and operational level participation. The concept of fairness and
equity presented by Adam (1963) and Robbins (1993) was undervalued resulting in
employee’s frustration and low performances. With the passage of time Microsoft was having
different sub culture in organisation, since employees were recruited across the globe.
Company was considered to cope with the change in culture; they were committed to 100%
diversity and zero percent tolerance policy toward discrimination and were taking any
allegation of discrimination seriously. However they were not successful in practicing this
policy, company faced discrimination law suit by African American employees. These
employees thought they were not treated fair in term of compensation, performance and
promotion. When employees feels they are not equally treated they tries to eradicate the
cause, so they took company to the court.

Microsoft also faced ethical issues related to business operation thus resulting in
antitrust proceeding by DoJ and EU. Antitrust proceeding negatively affected the company
image and stock price and also provided chance for criticism to its competitor. These factors
effected employees and investors motivation and company turnover started increasing
steadily. Every company is bound to follow business ethics diverting to these can cause
problems. Cullinan et al (2007) has also supported the same idea that if organisation practices
high standards of ethics in business decision, it is less likely to face ethical behavioural
questions. Company also launched the windows 2000, although they were aware of possible
bug that may occur. This ethical issue was of serious concerned company should not have
launched window. But it is assumed that company tried to maintain its profit, market share
and competitive advantage by launching new software as usual before its competitors. But
low adaptation rate and criticism from industry further de-motivated employees. Robbins
(2003) has also came up with the similar research results that if organisation is following high
slandered of ethics it has strong effects on employees motivation and performance.

All above issue are related to the Microsoft culture. Company was unable to cope
with the change, due to these issues company profit declined resulting in employee’s
turnover. In order cope the change company was considered to realign its culture by doing
research about understanding the scope of change. By conducting culture audit gap,
involving employee in realignment process to get maximum result. Levin and Gottlieb (2009)
has designed similar model to realign culture for optimal performance. Refer to figure two for
details .However the company tried to implement cost cutting program without
communicating with employee. Microsoft tried to force the change, however it was possible
to motivate and convince employees using self interest change strategy stated by David
(2003).

4.2HR Practices at Microsoft

4.21Communication
When we critically analyse the HR practices, practiced by Microsoft we came across
many issue but the major issue which was seriously affecting company was communication
gap. Employees were not communicated about many decisions before the process. This
practice even brought more gaps between employee and management and employee
relationship get weaker and weaker. E.g. company did not communicated the change in
policy about cost cutting program and even management was not aware about employee
attitude and behaviour or they have been provide with wrong information. Robbins (2003)
and Evan (2008) both have argued that communication is source of motivation and helps in
building strong relationship. Further more Berger (2009) also argued that organisation should
communicate its vision and mission again and again. Microsoft organisation did not
considerably concentrate in this area. This reality was also admitted by Enrice DiPietro
‘’Microsoft Corporate Vice President of Human Resources’’ that they were not good in
communicating the change. So when Microsoft tried to implement the cost cutting program,
they faced serious resistance from employee. This idea is also proposed by Hofstede (1980)
as uncertainty avoidance i.e. People are threatened by uncertainty, so employee’s resisted
and de-motivated and turnover went up. David (2003) has also concluded the similar concept
that people resist to change due to fear of economic loss and changes in relationship.
 When Lisa Brummel took the charge as HR chief she came across the issue of
communication gap between employees and HR. There was a gulf; she received two emails a
day from employees (power distance, Hofstede). People were not connected to company
missions any more, however internal survey was presenting picture of pleased work force.
This fact has been researched and proposed by many scholars like Robbins (2003) Evan
(2008) Berger (2009) & Egan et al (2004), all of these scholars emphasised on importance of
communication and considered as back bone in organisation. In order to eradicate the
communication gap, Brummel conducted town hall meeting and faced to face meetings with
Microsoft employees worldwide and requested the blogger for productive feedback. In
addition to this she asked employees to point out the area where they want change. This was
right move based on this information she reduced communication barriers in organisation and
boosted employees moral. She made employees to realize that they will be listening and
valued, in this way she tried fill the communication gulf and improved employee relationship.

4.22Performance Appraisal and Compensation System

Brummell changed the performance review system called as forced curve system
introduced in early 1980s. In this system numbers of employees rated with best ranking were
limited. While bringing changes in forced curve system she faced opposition from Ballmer
the CEO proving the concept of David (2003) people resist to change. Brummell was
partially able to cope with situation by modifying the system however she was not fully
successful to make system according to employee’s suggestions. She also reinstated the
stock option to previous position of 15% discount, resulting in boasting employee moral.
Brummell asked the employees for there need and areas where they want change followed the
concept of Maslow (1934) regarding employees needs. She implemented the change in same
manner which was proposed by Levin and Gottlieb (2009). Every company has it own
performance appraisal ,management, review and compensation system according to its
environment and working condition, however research conducted in this area by different
scholars shows that appraisal system should be open and communicated to appraiser over the
time. And in this regard 360 degree feedback is considered to be the most appropriate method
for performance management. In addition to this some leading companies like IBM using
combination of two systems.

4.23Benefits & Rewards

Brummel made changes to employees benefit program based on employees feed back.
She stopped desk side delivery of grocery, introduced Mobil medicine, discounts on hybrid
cars, local foods at Microsoft cafeteria, free dry cleaning service etc. She also restored towel
providing scheme, and settled coffee machine issue, in addition she started bus service, Wi-Fi
for employees. She understood the employees need and s he made changes in right sense by
interacting the change area, and communicating change, which is also proposed by Robbins
(2003), Evan (2008) and Berger (2009). She was successful in motivating employees and
brought turnover from 10 to 8.3 in two year’s period time. Employees were motivated due to
new benefit plan because they act as motivator to them. Baker et al, (1988) also argued that
profit sharing plans are popular amongst employees because they increase the level of
compensation and do not requires individual performance measurement. In addition to this
she introduced new innovative office design. She settled communication problem,
performance and appraisal, and benefits however she did not addressed the area of work life
balance for new recruits which was barrier in employing new recruits, and Microsoft
competitive advantage was young talent.

4.3Conclusion
The decreased performance and high turnover in Microsoft organisation were due to
their inability to sense and manage the change. There were many factors which resulted in
low morale and high turnover of employees such as change in culture, communication,
benefits, performance appraisal and review system. However implementing change was
major factor which increased low morale and turnover, although employees were concerned
while working under centralised leadership, changed working culture, stressed environment
after law suit and antitrust proceeding; these factors effected their motivation but still they
were working with company. However when Microsoft organisation tried to implement the
change without communicating and interaction of employees, they showed resistance and left
company. In contrast to this when Brummel worked for change she interacted with
employees, communicated with them and was successful in solving the majority of the issues.
However still she was not able to change the leadership style and recruitment policy for new
recruits due to the resistance from top management.
5. Appendix
Reason for high turn over
There are many reasons for employee high turnover but most frequent and case related are
discussed as under.
Incompatible corporate culture
Organisations need to make realize employees that their interest, goals, working style
and experiences are valued and supported by organisation if this is not the case then
employees prefer to leave. (Employee recruitment & retention handbook, 2001, p.222)
Feeling of not been perceived or valued
Although the leaders value the employees, however they don’t acknowledge them
frequently. When employees feel they are not valued, they are de- motivated and will leave.
(Herman, 2005) Most of the employees want to do good job and in response they want
constant feed back. So of the employee wants occasional feed back like good work, keep it up
etc even experienced employees of the organisation like to hear how they are doing and how
organisation is valuing and recognising their work. So if the employee perceives that their
work is not valued then they no longer are a part of organisation. (Employee recruitment &
retention handbook, 2001, p.223)
Not feeling part of company
Organisation in which employees are not asked for their suggestion and contribution
faces high turnover. Because every individual want to share it view, loves to be part of
organisation by knowing how they are fitting to the job and organisation. Especially the new
recruits are very much anxious to understand their impact of work in fulfilling organisation
goals. So if employees have a feeling that they are not part of company then they will
withdraw from company. . (Employee recruitment & retention handbook, 2001, p.223)
Work balance & Home Life
Balancing work hour with home life is now a day very strategic to companies and
main reason for competitive advantage over other companies. If organisation is not providing
balance in employee work and life style then it creates problem. Organisation which are
providing benefits like flexible in work hour, elder care assistance, flexible scheduling, job
sharing adoption benefits, pet care, employee helpline and even lawn service referral they
face less turnover (David, 2003).Because now day employee’s expect lot from organisation to
care about their issues and wants.

Performance appraisal and Reward system

Nee raja and Aman (2009) stated that performance appraisal system is area where
management find how effectively they have recruited and placed employee, and how they are
managed to achieve organisation goal. They have also stated that now day’s performance
appraisal is not only based on task but also on the contribution and performance in
organisation. Grote (2000) argued that performance appraisal system should be constantly
monitored, and it can be revised according to a company value and should be communicated
to appraiser.
(Rao 2005, cited in nee raja & Aman, 2009, p.2) stated that organisation should have
open appraisal system in order to develop ideal team for work, who are aware of their
strengths and weakness, and know the area in which they need development. Doing this they
can be motivated according to the organisation changing environment.
(Malik Argunan 2005, cited in nee raja & Aman, 2009, p.2) argued that most of the
HR experts favour 360 feed back systems as it is best in assessing strengths and weakness of
employees, and can be helpful in reducing their weakness at work. Reward system and
performance appraisal system should be based on equity and fairness to motivate people.
People are motivated when they expect that their contribution will lead to goal
accomplishment and they will be rewarded for their work (Armstrong, 2006).
Reward management is not only related to performance management however in
broader sense reward has to do much with motivation, recognition and other factors.
Examples of rewards are variable pay, Bonuses, sales commissions, Profit related pay,
Performance related pay (individual, business unit, organisation or all three), share options,
organisation-wide incentives. (Reward management RDI, 2010)

Benefits & Compensation

Every organisation is offering different type of benefits and compensation to its
employees. However Baker et al. (1988) argued that profit sharing plans are popular amongst
employees because they increase the level of compensation and do not requires individual
performance measurement. Landauer (1997) work/life programs are effective ways of
attracting and retaining good employees, increasing productivity, decreasing absenteeism,
and enhancing company reputation. Landauer (1997) further argued that these programs
should be designed according to unique needs of employees and goals of organisation.
Figure 1.Hofstede Cultural Model

Source: Adapted from (RDI) 2010

 Figure 2.Culture Realignment Roadmap

Sponsorship, Leadership, Communication

Define Preferred Culture

Conduct Culture Gap Audit

Ensure Leadership Alignment

Manage Priority Culture Realignment Levers

Promote Grassroots Efforts

Establish
Infrastructure Integrate Into Priority Strategic Initiatives
& Oversight
Assess Progress

Source: Realigning organisation culture for optimal performance (six principles & eight practices,
p.35)
Figure 3. Maslow Hierarchy of Need Theory

Source: Adapted from Journal of American Academy of Business, Cambridege, (Ramlall ,2004, p.54)
Figure 4: Best Retention Practices from Motivational Theories

Retention practices Theory Results

Training & Development Need theory effort, satisfaction, and turnover

compensation & benefits
career development

Job analysis, diversity Expectancy theory choice to pursue course of action,

career advancement, effort, turn over
compensation & benefits

Recruitment & selection Equity Theory effort, performance, satisfaction

compensation & benefits absenteeism,
Drivesturnover
career advancement
effective supervision

Source: Adapted from Journal of American Academy of Business, Cambridege, (Ramlall ,2004, p.54)

Figure5. Motivation Process

Unsatisfied need Tension

Reduction of Satisfied need Search Behaviour

Tension

Source: Adopted from Organizational Behaviour: concepts, controversies, and applications,

(Robbins, 1993, p.206)

drives
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