movtivation & retention strategies at microsoft (hr perspective)

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EMPLOYEE MOTIVATION & RETENTION STRATEGIES AT MICROSOFT Submitted By: Muhammad Omair STU 22782 Submitted To: IBAM Supervised by: JasimUddin LIBAMMBAW010G Word Count: 4,356

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Page 1: Movtivation & Retention Strategies at Microsoft (HR Perspective)

EMPLOYEE MOTIVATION & RETENTION STRATEGIES AT MICROSOFT

Submitted By: Muhammad Omair

STU 22782

Submitted To: IBAM

Supervised by: JasimUddin

LIBAMMBAW010G

Word Count: 4,356

Page 2: Movtivation & Retention Strategies at Microsoft (HR Perspective)

1. IntroductionNow 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 ReviewWith 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

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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

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[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 knowledgeMicrosoft 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

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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

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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.

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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

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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.

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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

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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.

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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

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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.

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Figure 1.Hofstede Cultural Model

Source: Adapted from (RDI) 2010

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Figure 2.Culture Realignment Roadmap

Source: Realigning organisation culture for optimal performance (six principles & eight practices, p.35)

Sponsorship, Leadership, Communication

Define Preferred Culture

Conduct Culture Gap Audit

Ensure Leadership Alignment

Manage Priority Culture Realignment Levers

Promote Grassroots Efforts

Integrate Into Priority Strategic Initiatives

Assess Progress

Establish Infrastructure & Oversight

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Figure 3. Maslow Hierarchy of Need Theory

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

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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, turnover career advancement effective supervision

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

Figure5. Motivation Process

Source: Adopted from Organizational Behaviour: concepts, controversies, and applications, (Robbins, 1993, p.206)

Unsatisfied need Tension

Satisfied needReduction of Tension

Drives

drives

Search Behaviour

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