effect of hrm practices on employee retention
TRANSCRIPT
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An Effectiveness of Human Resource Management Practices on
Employee Retention
Ata ul Mustafa 11014220-028
Sara Masood 11014220-129
Abeera Athar 11014220-139
Abstract
An effective human resource practice namely empowerment,
compensation, appraisal system, training are the main factors
for the retention of a firm employees. In this research paper
our object is how employees regard importance of their
empowerment; compensation and job design throw training and
expectancy toward high performance management toward on their
retention. Quantitative data was collected using non-
probability self-administered questionnaire that consist on
questions with 5- point likert scales distributed to our sample
of 90 individual in university of Gujrat. By using multiple
regression analysis it is found that training, compensation,
and appraisal system is not significant for employee retention;
while empowerment is more fundamental to lecturers’ the
research showed that overall and organization cultural aspects
have more effectiveness for employee retention as compare to
these variables.
Keywords: Employee Empowerment, Training and Development,Appraisal System, Compensation, Employee Retention
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1. Introduction:
Employees are considered as backbone for organization. Employee
retention refers to the various policies and practices which
let the employees stick to an organization for a longer period
of time. An effective human resource management practices
namely employee empowerment, training and development,
appraisal system compensation are the main factor for the
success of a firm on employee retention. HRM practices have
their most immediate impact on employees since employee
outcomes are in a closer line of sight to the practices. HRM
practices have the strongest effect on employee outcomes as
these outcomes are to some extent the initial goal for
designing the HR practices.
In explaining factors contributing to employee retention, it is
essential to consider motivational theories as motivated
employees tend to stay with an organization longer. Employee
will be motivated to carry out his job if given sufficient
guidance through training and development, appraised through
effective performance standard and compensated equally
according performance standard. Through the understanding of
various well-known motivational theories such as Maslow’s Need
Hierarchy and McClelland’s Need Theory.
Regarding the theory about how HRM and Performance are linked,
it is acknowledged that there is a little understanding of the
mechanisms though which HRM practices influence performance
(Delery, 1998). As regards to performance outcomes, Dyer and
Reeves (1995) proposes an essential causal chain that HRM
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practices must impact human resources related outcomes before
the organization could expect to see an impact on
organizational, financial and market based outcomes (Wright,
Gardner and Moynikan 2003). As supported by (Lee and Lee 2007) HRM
practices on business performance, namely training and
development, teamwork, compensation, HR planning, performance
appraisal, and employee security help improve firm’s business
performance including employee’s productivity, product quality
and firm’s flexibility.
2. Problem Statement :
There are many HRM practices implement around the globe
operated regularly for the retention of employees in
organization, even in private education sector. A strong
competition environment specially makes employee retention a
significant move in keeping competitive edge. Because some
researcher proved that an organization has less turnover of
employee it more enjoyed cost saving & talent preserve as
compare to others. Organizations used multiple tools for the
retention of employees. The problem remains on whether how
great is the effect of HRM practices having toward overall
employee’s retention. In order to solve this problem, the study
will investigate influence of empowerment, training,
performance appraisal and compensation on employees’ retention
with an institution through surveying the University of Gujrat
Lecturers.
3. Research objective:
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The main purpose aims at reflecting how employee empowerment,
training, job appraisal and compensation affect lecturers in
their retention with its organization to be more specific, it
studies on effectiveness of existing training programs,
employee empowerment, job appraisal and compensation in
retaining employee from the academicians’ perception. By
collecting academicians’ opinions, it would reflect how they
perceive as satisfactory development which may enhance their
future career planning and job promotion.
4. Hypothesis:
Employee Training:
H0:There is no significant relationship between employee
training and employee retention.
H1:There is significant relationship between employee training
and employee retention.
Appraisal System:
H0:There is no significant relationship between appraisal
system and employee retention.
H1:There is significant relationship between appraisal system
and employee retention.
Employee Compensation:
H0:There is no significant relationship between employee
compensation and employee retention.
H1:There is significant relationship between employee
compensation and employee retention.
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Employee Empowerment:
H0:There is no significant relationship between employee
empowerment and employee retention.
H1:There is significant relationship between employee
empowerment and employee retention.
5. Literature Review:
5.1: Employee retention:
Retention as the “….effort by an employer to keep desirable
workers in order to meet business objectives” Frank et al.
(2004, p. 13)
Employee retention almost has a direct correlation to the
culture of the company. So focusing on employee retention
really starts at the core of the leadership of the company or
department and the culture they are trying to create. The cost
of turnover is extremely high and the residual effects on
morale are even higher as damage control as employees search
for rationale and reasons as to why employees are leaving. The
overall productivity and quality of work generally increases
with a satisfaction. The desire to make the department or
company a better place to work also gains traction and
organizational lift and inevitably a buzz from the outside the
organization where it becomes “The Place to be.” Finally, the
signs of strong employee retention correlate with the
employees’ engagement and being treated fairly. Retention is a
strong measurement that gives the other side of organizational
health along with profitability. The literature defines
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retention as continuing relation between employees and their
organization and turnover as any permanent departure beyond
organizational boundaries (Cascio wf 1995) The accurate
assessment of the relationship between HRM practices and
performance requires reliable and valid assessment of practices
(Gardner, Moynihan, Park and Wright, 2001) however there is no
consensus on HRM practices yet (Katou and Budhwar, 2010). Job
satisfaction is an attitude that individuals maintain about
their jobs (Pool, 1997). . Hiring knowledgeable person for the
job is necessary for an employer. But retention is even more
important than hiring. “Retention is a voluntary move by an
organization to create an environment which engages employees
for a long term” Chaminade (2007 cited in Chibowa et al. 2010).
According to Samuel and Chipunza (2009), the most important
purpose of retention is to look for ways to prevent the capable
workers from quitting the organization as this could have
negative effect on productivity and profitability. The view
that the main purpose of retention is primarily for
organizational gains is similarly viewed by (Humphreys et al.
(2009), who in describing the concept, place the focus of
retention in terms of “some notion of adequacy or sufficiency
of length of service…”, which can be measured in terms of a
return on the costs of investment associated with training and
recruitment or the effects on patient care that are considered
to be optimal.
Many companies devise creative employee retention plans and
strategies to encourage employees to stay with their
organization. Effective employee orientations, generally
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employees, regardless of which company they work for, have
similar complaints. Many of these issues are easy to rectify
and if addressed will save the loss of valuable employees.
Gberevbie (2008) referred to frequent labor turnover as “a
state of affairs in an organization…” where it is seen that
employees tend to leave or resign from their jobs because of
best known reasons based on their point of view concerning
personnel policies and practice of a firm. Frequent labor
turnover at work has been found to be causing harm to
performance, especially when employees are going to the direct
competitors of the organization (Chartered Institute of
Personnel Development (CIPD 2006).
5.2: Compensation:
Compensation is a reward which an employee receives from an
organization (mainly refer to enterprises) for his or her
service. It not simply contains direct currencies and other
forms which can convert to currencies, but also a comfortable
office, favorable interpersonal relationship inside the
organization, having access to decision-making involvement, the
challenge and sense of achievement, preferable growth
opportunities and so forth these kinds of forms which is
difficult to measure in various currencies.
Reward has compensatory function; it is an exchange of the
service one employee has offered or the retribution for the
done work. In addition, motivation is another function of
reward, for working quality, the degree of focusing on
customers and enthusiasm of learning new skills will be
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influenced by the decision-making of reward and the ways in
which employees get their rewards. Regulatory function of
reward is embodied in several aspects which include reasonably
allocating labor force and modulating the configuration of
quality of labor force. And it is obvious that reasonable
reward system can help bring effectual income far beyond the
cost.
Fernandes (1998) describes total reward as “The sum of the
values of each element of an employee’s reward package.” Total
Reward begins with total remuneration, the subset of Total
Rewards, which compromises all the elements of rewards that can
be valued in dollar terms According to DiPietro and Condly
Commitment and Necessary Effort model of motivation to find how
hospitality employees are motivated. They discovered that
nonfinancial compensation or the quality of the work
environment played an important part on employee turnover
intentions. Companies are in danger of creating an
unsatisfactory working environment if there is no any
compensation planning. According to the *Armstrong and brown
Total reward is the term that has been adopted to describe a
reward strategy that brings additional components such as
learning and development, together with aspects of the working
environment, into the benefits package And it is a plan for
allocating rewards resources in a manner that directs the
business to the successful execution of its objectives (Manas &
Graham, 2002).
In most recent years total reward has been becoming a more and
more popular facet which has caught many scholars attention. As
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a part of human resources management practice, total reward has
also been introduced into varieties of enterprises to improve
their competitiveness so that they will have the abilities to
survive in the global marketing warfare.
Among all kinds of budgets in an organization, remuneration
cost remains a part of great importance. With the speedy update
of the modern world, however, the traditional remuneration
management has been facing great challenges both in public and
private sectors under the current economic and business
circumstance, and then come a lot of problems which can affect
the performance of an organization and even cause existential
threats.
5.3: Training and development.
Training refers to a planned effort by a company to facilitate
employees learning of job related competencies. These
competencies include knowledge, skills, or behavior that are
critical for successful job performance. The goal of training
is for employee to master the knowledge, skills or behavior
emphasized in training programs and to apply them to their day
to day activities. For a company to gain competitive advantage
its training has to involve more than just basics skills
development. That is to use gain a competitive advantage.
Training is an important activity for enhancing skills and
improving staff performance and that training can address some
of the factors contributing to staff retention, such as
perceived support from the supervisor, the agency, and
community. Effective training programs are systematic and
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continuous. In other words, training must be viewed as a long
term process, not just an infrequent and/or haphazard event
(Tannenbaum & Yukl, 1992)
Today more and more companies are interested in tangible
assets and human capital as a way to gain an advantage over
competitors. Training and development can help a company’s
competitiveness by directing increasing the company’s value
through contributing to intangible assets. Firms can develop
and enhance the quality of the current employees by providing
comprehensive training and development. Research indicates that
investments in training employees in problem-solving, decision-
making, teamwork, and interpersonal relations result in
beneficial firm level outcomes (Russell, Terberg, and Powers,
1985) when the results of training reflected in improvements in
relevant knowledge and the acquisition of relevant skills,
employee job performance should improve provided that the
skills learned in training transfer to the job. However,
training alone cannot address all of the factors contributing
to staff retention, however, such as excessive caseloads and
promotional opportunities within the agency. It is, therefore,
reasonable to say that training can play a role in improving
retention, but it may not be sufficient to improve retention if
other systematic barriers are not addressed. According to Gomez
et al, (1995), training provides specialized technique and
skills to employee and also helps to rectify deficiencies in
employee performance, while development provide the skills and
abilities to employee which will need the organization in
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future. Development of skill consists of improving
interpersonal.
5.4: Performance appraisal.Performance appraisal is a process of inspecting and evaluating
an individual’s performance
in his duty to facilitate the decision of career
development of the individual. It evaluates the individual
overall contribution to the organization through
assessment of his internal
characteristics, working performance and his capability
to pursue higher position in organization (Gruman &
Saks,2011). In order to enhance organizations’ ability
to survive through turbulent environment, mostly top
corporations take great concern on managing the performance
measures of their employees. It is common understanding
that top talents are keys to business success today, but how
a company manages its talents or human resources would be the
fundamental to all the success where effective structure
of performance measurement would ensure company fully utilize
its competitive resources to maximum.
Overall, our findings lend support to the notion that retention
profiles differ between high and low performers (Griffeth &
Hom, 2001; Steel et al., 2002). High performers were more
likely than low performers to report staying because of
advancement opportunities, constituent attachments, job
satisfaction, organizational justice, and organizational
prestige, all of which are believed to reflect low desirability
of movement (March & Simon, 1958). On the other hand, we did
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not find support for the prediction that low performers would
cite low ease of movement factors (i.e., lack of alternatives,
investments) at a greater rate than high performers. It is
possible that high and low performers may have cited lack of
alternatives at the same rate but for different reasons. Low
performers may stay because they cannot find external
alternatives of any kind, whereas high performers stay because
they cannot find alternatives that offer rewards that exceed
those associated with their current position. Overall, and in
the context of this study,
low performers appear to be somewhat marginalized; more often
they report staying because of pay and benefits rather than
opportunities to advance, fair treatment, or positive attitudes
toward the job, the company, or its constituents. On the other
hand, high performers, perhaps owing to clear linkages between
their inputs and outcomes, stay because they feel fairly
treated, believe they have a future with the organization, and
enjoy their work and the connections they have with others.
According to Eric Ng C H & Lam Zheng Hao (2012), fair appraisal
system is essential in any organization to retain valuable
employees. It enables employees to understand their job
responsibilities and show them the path towards individual
growth
5.5: Employee Empowerment.
Generally, empowerment is delegating the power of
decision and action to the employees and giving more
responsibility and authority to complete their task (Dr.
Yasar F. Jarrar & Professor Mohamed Zairi, 2010). It means
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that employees have sufficient authority to determine how
they perform their tasks. In a broader view,
empowerment includes involvement of employee in goal-
setting, decision-making and motivational techniques and
enabling employees to work in a participative
environment (Osborne, 2002).Undeniably, empowered employees
are identified as powerful drive in organization’s
success (Kaye & Jordan-Evans, 2001). It is because they are
more motivated and committed to organizational operation.
According to Hummayoun Naeem and Muhammad Iqbal Saif in
2010, employee empowerment can create sense of
belongingness and ownership towards the current
organization. They tend to be more confident and perform well.
Indirectly, it will increase service quality and customer
satisfaction.
To engage and involve employees in the decision making process
related with their organizational role and jobs and allowing
them use innovative and creative ideas to perform well and
bring value addition in the business. Encourage employee
empowerment and self-initiative would make employee work in
accordance with department goals to sustain quality. Employees
feel importance and motivated to attain organizational
objectives (Loke, 2001).High performance employees are formed
in an empowered organization, and eventually they will improve
the organization’s efficiency and productivity (Hammuda &
Dulaimi, 1997).
In summary, the literature defines retention as continuing
relation between employees and their organization and turnover
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as “any permanent departure beyond organizational boundaries”
(Cascio, 1995, p. 581). The benefits of retention are saving
cost for further recruitment, fewer training to be conduct for
new candidates, improve productivity, increase employee’s
performance and thus increase profits and meet their
organizational goals and objectives. Eric Ng CH & Lam Zheng Hao
(IJBRM) 2012 discussed the relationship between each of the
human resource management practices with employee’s retention
and employees turnover, which are the impacts from employee
empowerment, employee training & development, performance
appraisal and employee compensation.
5.6: Proposed Theoretical Framework:
Employee Empowerment
Employeetraining
Employeecompensatio
n
Employee retentions
Appraisalsystem
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6: Research Methodology:
Quantitative data was collected using the non-probability
self-administered questionnaire that consist of questions with
5-points Liker scales distributed to our samples of
individuals. In analyzing the data collected, Statistical
Package for the Social Sciences (SPSS) technique has been
employed. This section also introduced the sampling techniques
used in order to collect information from target population
using questionnaire in scale rating manner to be implemented
into the SPSS program to process the reliability test and
subsequent empirical analysis.
7. Research Design:
Research design is an overall framework of a research that
explains the direction and method to be used in the study to
gather the information needed, either from primary or secondary
sources (Malhotra, 2007).According to Neuman (2006),
quantitative approach has the characteristic of measuring
objective facts using variables where data is separated from
theory, statistically analyzed and emphasized with its
reliability. Quantitative approach been used to develop
hypotheses that consist of all the variables to empirically
investigate the above statement via statistical technique.
7.1 Data Collection Methods:
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In this section, there would be illustration on what methodswill be used in collecting the data in order to empirically
test the formulated hypotheses, and hence solving the research
questions.
7.2 Sampling Design:
Target Population According to Hair and Bush (2006), target
population is said to be a specified group of people or object
for which questions can be asked or observed made to develop
required data structures and information. Therefore, the target
population in the research is focus on the lecturers and tutors
in University of gujrat regardless of campuses.
7.3 Research Instrument:
The research instrument that used by our group is
questionnaire. The purpose of using questionnaires survey is
because of the direct response and feedback from the
respondents that can be collected in short period of time and
in an easier manner.
7.4 Questionnaire Design:
For this research, the questions in the questionnaire are
closed-ended or structured in order to ease the process of
analyzing the data from respondents. Thus, the results gathered
from respondents will increase the speed and accuracy of
recording, as well as more comparable. The questions are
adopted and modified from previous research papers conducted by
other researchers. The questions are designed by simple English
to reduce misunderstanding and uncertainties on the questions
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by the respondents. This questionnaire consisted of two parts,
section A is general information which consisted of nominal
scale, ordinal scale, interval scale and lastly ratio scale. In
section B, it consists of questions of four factors which have
the impact on the employee retention, where the four variables
are empowerment, compensation, training and development, and
appraisal system. The questions will be formed in a five point
Likert scale which allows respondents to indicate how strongly
agree or disagree with the statement provided. It will lead to
a better understanding towards the factors that have the impact
on retention of University of gujrat lecturers.
8. Results:
8.1 Multiple Linear Regressions:
The concepts and principles developed in dealing with simple
linear regression (i.e. one explanatory variable) may be
extended to deal with several explanatory variables.
For reliability measurement
Reliability Statistics
Cronbach's Alpha N of Items
.706 5
Source: developed by research
This table shows the reliability value (.706) by the help of
Cronbach's alpha test.
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Table 1 model summary:
Model Summary
Model R R SquareAdjusted R
SquareStd. Error ofthe Estimate
1 .405a .164 .125 2.38950
a. Predictors: (Constant), appraisal, compensation, empowerment, training
b. Dependent variable is employees retentionSource: developed by research
According to the model summary above, the R square value hadgain 0.405, which is 40.5 percent. These mean that 40.5% ofdependent variable of retention can be explained by it 4independent variable. The independent variable refer toinclude employee empowerment, compensation, training andappraisal system in this research, it will conclude that59.5% (100% - 40.5%) of dependent variable of retention isexplained by other potential factors. The value of adjusted Rsquare with value of 0.164 which 16.4% represented thesignificant contribution of the 4 independent variable towarddependent variable.
8.2 ANOVA :
Table 2. ANOVA Model Summary:
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 95.165 4 23.791 4.167 .004a
Residual 485.324 85 5.710
Total 580.489 89
a. Predictors: (Constant), appraisal, compensation, empowerment, training
b. Dependent Variable: retention
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Source: Developed from the research
Above table determine satisfactory result as the significance
level of the model is not over 0.05. Thus, model that used in
this research is good and the model significant value is .004.
8.3 Multiple Regression Analysis:
Table 4. Multiple Regression Coefficient Analysis:
Coefficientsa
Model
UnstandardizedCoefficients
StandardizedCoefficients
t Sig.B Std. Error Beta
1 (Constant) 9.158 2.246 4.077 .000
empowerment .229 .104 .248 2.198 .031
compensation .070 .110 .069 .637 .526
training .024 .077 .037 .312 .756
appraisal .172 .125 .170 1.380 .171
a. Dependent Variable: retention
Source: Developed from the research
Multiple Regression equation:
Y= C + βX1 + βX2 + βX3 +…..+ βXn
Y= Prediction relationship of types of variables toward
retention.
C= Constant value.
β= Unstandardized coefficient.
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X= Dimension of independent variable (employee empowerment,
compensation, training and appraisal system).
Based on the above table, we able to derive the following
equation:
Y= 9.158 +0.229 X1 + 0.070X2 + 0.024X3 + 0.172X4
This can be interpreted that the increase of 1 unit of employee
empowerment (X1) may incur the raise of 0.229 units in
retention (Y). However, for the independent variable of
compensation, every 1 unit of increase will incur the raise of
0.070 units in dependent variable, retention. On the others
hand, 1 unit increase in training may cause 0.024 units of
retention to increase. Finally, appraisal variable also have a
constant relation with retention, it is every 1 unit increase
in appraisal with incur the raise of 0.172 units in retention.
The highest beta indicates the independent variable is the most
significant variable toward it dependent variable. From the
table above, the independent variable of empowerment has the
highest positive beta of 0.248, this mean that the independent
variable of empowerment has contribute the most and has
stronger effect toward the retention if compare to others
independent variable.
9. Discussions on major findings:
H1: There is significant relationship between employee
empowerment and employee retention.
From the hypotheses testing, it shows that there is
significantly positive relationship between independent
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variable empowerment and dependent variable retention. The
value of 0.351indicate empowerment is positively correlated to
retention. However, p=0.031 (p<0.05). Hence, H1 is supported.
Generally, the raise of empowerment of an employee will likely
to generate higher retention to the organization. According to
Carol Yeh in 2002, an empowering culture nourishes empowering
leaders, accelerates the implementation of empowering
practices, and encourages employees to be self-managing. High
performance employees are formed in an empowered organization,
and eventually they will improve the organization’s efficiency
and productivity (Hammuda & Dulaimi, 1997). From the results
above, these results indicate that the relationship is
correlated and result significant.
H2: There is Significant Relationship between Employee
Compensation and Employee Retention.
From the hypotheses testing, it shows that there is no
significantly relationship between independent variable
compensation and dependent variable retention. The values of
0.206 indicate compensation is positively correlated to
retention and its p-value is 0.526 (p> 0.05). Hence, H2 is not
supported.
This is true a well-compensate employees perform his role
bitterly so for that purpose an effective compensation plane
must be required by organization. Compensation is not only the
return and benefits for the work that done, but it also
reflects their accomplishments (Ali, 2009). Therefore, an
effective compensation system should be designed to compensate
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employees. The compensation system is particularly important
for intelligence-intensive industries like educational
institutions because competent employees are the core
capabilities or resources to the enterprises (Lai, 2011).
H3: There is no significant Relationship between Employee
Training and Employee Retention.
From the hypotheses testing, it shows that there is positive
but no significant relationship between independent variable
training and dependent variable retention. The value of 0.240
indicate training is positively correlated to retention and its
p-value is 0.756 (p>0.05). Hence, H3 is not supported.
According to Thomas Acton and Wilie Golden in 2002, job-related
training can enhance the ability of problem solving of
employees. Once they are confident and motivated to perform a
task, they are more likely to be committed to their job and
reduced the turnover rate. But hear show some others factor
also effect like employees KSAs.
H4: There is Significant Relationship between Appraisal System
and Employee Retention.
From the hypotheses testing, it shows that there is no
significantly relationship between independent variable
appraisal and dependent variable retention. The values of 0.317
indicate appraisal is positively correlated to retention and
its p-value is 0.171 (p > 0.05). Hence, H4 is not supported.
A fair appraisal system is essential in any organization to
retain valuable employees. An unfair appraisal system can
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result in unrest and dissatisfaction amongst employees.
Scholars usually argue that performance appraisals that are
conducted properly can produce positive organizational results
(Pettijohn, 2001). Managers should conduct the process without
holding any bias against any team member. So overall some
baseness and favoritism exist that’s why some time appraisal
had negative impact.
10. Implication of study:
The findings found from this study will be particularly useful
for top organization to understand how they can do better to
improve their employee retention strategy. The research
explores how employees perceive the importance of empowerment,
training, compensation and appraisal aspects when they make
decision to stay loyalty with an organization. These aspects
are all essential human resource tools that often been utilized
by most of the corporation now a days to facilitate their
strategic management.
Based on the findings generated, employees are generally
concerned with all these aspects as result shows close
relationship between these independent variables and employee
retention. But the most effective thing is empowerment of
employees toward his job task as compared to other variable.
Hence, manager must be sensitive to needs of employees in
learning new skills & knowledge, delegation of power on action
and decision, desire for competitive compensation package and
recognition on existing appraisal system. The study assumes
that if an organization fulfills employee satisfaction in all
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these aspects and also facilitate according to culture, there
will be higher possibility that the retention rate would be
boosting in that organization.
Moreover, this study reveals an opportunity for organization
to manipulate these four aspects to attract potential talents.
By establishing a reputable image as an organization, the
organization will directly become favorites among the workers.
When an organization is able to motivate its employees in a
more specific manner, it will directly increase productivity
and efficiency of its operation.
11. Limitation:
In this research, researchers encountered a few limitations.
We solved the problems faced to make sure the research can be
done in time.
Single Source of Respondent In this research, 90 respondents
from the same university were chosen to conduct a research. It
was hard to make sure the result of the research can be
estimated accurately. The single source of respondent was
difficult to determine the research objective well and
effectively. Moreover, the respondents were chosen from a
government university in Pakistan. So this thing also effective
the views and needs of lecturers from other universities might
be different due to the different working environment in
different universities.
Short Time Frame: Time constraint was one of the problems that
we faced. To complete the research, we have to gather
information, collect supporting document, conduct survey and
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run the entire test to show the reliability of the results
within limited time.
Respondents’ Biasness Respondents tend to be biased in
answering the questionnaire provided by the researchers because
the respondents were chosen from a single government
university. The views of lecturers may be different in
different universities. They have the tendency to agree or
disagree with certain questions since they were working in a
similar working environment. This may lead to inaccuracy and
unreliability of the answer.
There are many other factors influencing the employee’s
retention except the empowerment, compensation system, training
program and appraisal system. Researchers should carry out the
research about employees’ retention continuously due to it is a
very important factor in an organization. In the dynamic
working environment and changes of human force, retaining
competent employee should be a vital issue in many
organizations.
12. Conclusion:
As what the study has shown, there are no significant
relationship between the factors of training, compensation and
appraisal on University of gujrat lecturer’s retention. This
reflects the major finding of this study on how different
culture might have different expectation on determining their
employment satisfaction and retention.
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Prior to the result, the study provide empirical evidence that
supports all the above independent variables to be
significantly affecting the employee retention. Most of the
researchers agree with these statements as shown in literature
review by providing all the empirical evidence from each
study’s result. After establishing firm and reasonable design
instrument, primary data is gathered from the targeted
respondent, i.e. lecturers in University of Gujrat to implement
these data into SPSS software to process meaningful
information. Eventually, empowerment and all others as the o
independent variable to not been supported by this study. To
illustrate this situation, the study carried out further
investigation and countered the opposing result with supporting
journals.
As conclusion, the whole study identify that training,
compensation, appraisal and empowerment not perform the all
in all role for employees retention. Some cultural aspect or
other HRM function may more important as compare these fours
for employee’s retention and its motivation. These factors are
may safety standard, job security, work life balance etc.
13. References:
Ali P (2009). Job satisfaction characteristics of higher
education faculty by race. Afr. J. Bus. Manage. 4(5): 289-
300.
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Armstrong, M. & Brown, D. (2001). New Dimensions in Pay
Management, Chartered Institute of Personnel and
Development
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14. Appendix:
Questionnaire
Section A: Background Information1. Sex: Male Female2. Your Current Age:
31
3. Your Current Income: 25 – 30
20,000 – 25,000 31 – 35
26,000 – 35,000 36 – 40
36,000 – 45,000 Over 41
Above 46,000 4. Your Level of Education:
Bachelor Master M. Phil PHD
5. Your position in organization:
Top Level Upper Middle Level Middle Lower Level
Section B:Below is a list of statements that describing one’s perceptionsabout his\her organization. Please indicate the extent to whichyou agree or disagree with each of the following statements using the scale as follows:
1- Strongly Disagree (SD)
2- Disagree (D)
3- Neutral(N)
4- Agree(A)
5- Strongly Agree (SA)
Empowerment:
Statement SD1
D2
N3
A4
SA5
1. I have the opportunity to determine how I do thejob.
2. I take appropriate action without waiting forapproval.
3. My work makes good use of my skill and ability.
4. I make decision about implementation of new programin the university.
5. I believe that I am empowering student.
32
Compensation:
Statement SD1
D2
N3
A4
SA5
6. I am satisfied with the pay that I receive.7. I earn more than others who do similar work at other universities/colleges.8. My pay encourages me to improve the quality of mywork.9. I will receive a reward if I do something to improve my work.10. The non-monetary benefits, such as vacation time and medical insurance that receive here are better than those I could get at similar universities/colleges.
Training and Development:
Statement SD1
D2
N3
A4
SA5
11. I am sent to extend higher qualification program.
12. I have received sufficient training at firm to do my job effectively.13. I am trained in quality improvement skills.
14. I am arranged with a mentor to facilitate career planning.15. I am given training at a regular basis.
Appraisal System
Statement SD D N A SA
33
1 2 3 4 516. The quality of my work is an important factor in evaluating my job performance.17. I am regularly given feedback on my job performance.18. I am satisfied with existing performance appraisal system.19. The performance ratings were done periodically.20. The performance rating is helpful to identify my strength and weakness.
Employee Retention:
Statement SD1
D2
N3
A4
SA5
21. I am prepared to put in a great deal of effort beyond what is normally expected in order to help thisuniversity to be successful.22. I plan to make this university my own career.
23. I feel a lot of loyalty to this university.24. This is the best university for me to work for.
25. I would recommend this university to a friend if he/she is looking for a job.
Correlations
retention empowerment compensation training appraisal
retention Pearson Correlation
1 .351** .206 .240* .317**
Sig. (2-tailed) .001 .051 .022 .002
N 90 90 90 90 90
34
empowerment Pearson Correlation
.351** 1 .246* .403** .415**
Sig. (2-tailed) .001 .019 .000 .000
N 90 90 90 90 90
compensation Pearson Correlation
.206 .246* 1 .287** .384**
Sig. (2-tailed) .051 .019 .006 .000
N 90 90 90 90 90
training Pearson Correlation
.240* .403** .287** 1 .494**
Sig. (2-tailed) .022 .000 .006 .000
N 90 90 90 90 90
appraisal Pearson Correlation
.317** .415** .384** .494** 1
Sig. (2-tailed) .002 .000 .000 .000
N 90 90 90 90 90
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).