Saturday, September 27, 2014

Improving Organization Retention

Organizations that promote healthy work environments completely understand that it benefits their organization as well as their employees and customers.  Healthy work environments promote positivity within the organization that will result in an increase in productivity.  Problems are inevitable within any organization as misunderstanding occur, personality conflicts and misconduct, however it is the manner in which the problems are handled that has a direct influence on an employee’s perception of the organization.  I have been hired as independent consultant for JC’s Casino to help improve retention issues concerning the dealers and housekeepers.  As an independent consultant I have to identify each issue and make recommendations to the president of the casino on how to improve overall retention. 
One of the first things I examined was the dealers pay rate in comparison to other casinos in the area and I found out that JC’s casino pays their dealers more than their local competition; however most of the dealers have left to work for other casino’s for less money.  Dealers are required to have a state gaming license and work on the gaming floor in the casino dealing cards, shuffle decks of cards, exchange chips for cash and payout winnings.  The owner’s son Joe is the floor manager, also known as the pit boss and he oversees the dealers and tables supervising large transactions and payouts.  The turnover rate for dealers at JC’s casino is very high and the pay rate is very competitive so it was obvious that the dealers were not leaving because they were unhappy with their salaries.
JC’s casino like many organizations performs exit interviews with employees when the employee decides to terminate their employment.  An exit interview is “a discussion between a departing employee and a representative of the organization that occurs in the last days of an employee’s tenure” (Holtom, 2006).   Tom Sneed is the human resource director and conducts exit interviews at JC’s casino.  Exit interviews serve many purposes, for one it give the organization the opportunity to get information about what areas the organization is doing well in and what areas needs improvement. Employees provide information as to why they are leaving during the exit interview, which could give the organization an opportunity to persuade them to stay depending upon what their grievances are.  Exit interviews can also be used “as a public relations exercise to ensure that the parting employees leaves the company on a positive note” (Holtom, 2006).  Many of the dealers alluded to their pit boss Joe as being “toxic, overbearing, evil, and incompetent”, however the human resource director is afraid to confront the owner about the accusations bought against his son.
The information gathered from the exit interviews of the dealers has allowed me to identify one of the problems that JC’s casino has with employee retention, which is a toxic manager.  The human resource director is well aware of this problem but is afraid to confront the owner about his son and the way he is treating employees because he is in fear of losing his position at the organization.  The Sunday Times published an article on toxic bosses and defined them as “managers who really make life hell for staff” (Wheldon, 2007).  Joe is the owner’s son so confronting him presents a conflict of interest for the human resource director, however the owner of JC casino needs to be made aware of the way his son is treating employees because his behavior is affecting the morale and productivity of the organization forcing dealers to leave and go work at other casinos for less money but better treatment.
The housekeeping department is another area that is having difficulty retaining employees.  Housekeeping is a physically demanding position where individuals are responsible for the maintenance and cleanliness of JC’s casino.  Individuals in this position are required to be in good health because the functions of the job are mostly physical, such as standing, walking, lifting and bending.  Andrew Keehn is the director of housekeeping and has been trying to get more staff but he believes that “good help is hard to find”, so he puts more responsibilities on the staff he currently has without any additional compensation.  The pay rate for a housekeeper at JC’s casino is equivalent to other casinos; however the workload is more which is good enough reason for employees to seek positions at other casinos.  The director of housekeeping perception is that of an individual with low morale, therefore he is more likely to have issues with recruitment because he already believes that it is impossible to find individuals that will possess the knowledge and skills to perform the functions of the job. 
As an independent consultant for JC’s casino my goal is to help this organization develop a solution to the problem they are having with recruiting and retaining employees before these problems escalate affecting the organizations revenue.  The first step is to work on building a foundation for success by implementing mandatory training for all management personnel responsible for overseeing other employees.  Training of managers will increase job satisfaction and have an influence on employee retention.  The training should focus on how to treat employees with respect and increase productivity.  Managers must learn how to keep the morale high in the organization as it will motivate the employees by promoting a positive work environment.  An addendum should be added to the employee handbook that ensures employees that JC’s casino is committed to providing all employees with a safe and secure working environment and that if someone feels that are being unfairly treated it should be reported immediately to the human resource director so that the issue can be resolved immediately.  If his son continues to treat employees bad, he should be terminated as that may reduce the turnover rate for the dealers. 
Motivation is defined as “an internal state that induces a person to engage in particular behaviors.  From one perspective, it has to do with the direction, intensity, and persistence of behavior over time.  From another perspective, motivation is concerned with the desire to acquire or achieve some goal” (Spector, 2012 p. 194).  Work motivation theories “are most typically concerned with the reason, other than ability that some people perform their jobs better than others. Depending on the situation, these theories can predict people’s choice of task behavior, their effort, or their persistence” (Spector, 2012 p. 194).
B.F. Skinner and his colleagues developed the reinforcement theory which “describes how rewards or reinforcements can affect behavior” (Spector, 2012).  Reinforcement theory is a non-motivational theory because Skinner believed that an individual’s behavior was merely the result of consequences.  If an individual received positive reinforcements they are more likely to repeat certain behaviors and if they receive negative reinforcements then they are more than likely not to repeat that behavior.  Organizations most promote a healthy positive work environment in order for the reinforcement theory to be effective.  Positive and negative reinforcement is a very strong tool that can be used to control individual’s behavior, however without analyzing that behavior further it may never be known what contributed to the individual acting a certain way.
The owner of JC’s casino can apply the reinforcement theory with the managers, particularly his son by reprimanding him for treating the employees badly.  If the managers see that this type of behavior will not be tolerated then they will be reluctant to mistreat the employees.  I also believe that if the owner shows care and concern for the treatment of his employees it will make them reconsider leaving the organization to go work for the competition.  The only disadvantage I see to this is that it may stop his son from mistreating employees; however it will not uncover the reason as to why he was mistreating the employees in the first place.  As for the housekeepers, the reinforcement theory can be applied by implementing positive reinforcements to current employees for their efforts, especially since they are short staffed and many employees are doing more than their share of the work.  Verbal praises and acknowledgements would show employees that management is paying attention to their efforts, as well as rewards such as gift cards and thank you notes.
Justice theories “are concerned with people’s values rather than needs, beliefs, or reinforcements.  These theories presume that people universally value fairness in their social relations at work” (Spector, 2012 p.195).  Fairness in the workplace is based on outcomes, which is “rewards or everything of personal value that an employee gets from working for an organization” in relation to employee inputs, which “are the contributions made by the employee to the organization” (Spector, 2012 p.204).  Ensuring equal and fair treatment is what motivates many individuals at the workplace.  If employees feel that they are not receiving equal and fair treatment in comparison to others it can cause them to be very unhappy with their job and not feel motivated to stay at that organization. 
The housekeepers at JC’s casino are expected to work harder and do more than someone else in their same position and receive the same pay and their efforts went unrecognized and because of this they became frustrated and angry which eventually led to them leaving.  The director of housekeeping needs to apply more of an effort in recruiting staff for the housekeeping department to balance the workload for the current employees.  The dealers work environment is hostile because their pit boss is “toxic, overbearing, evil, and incompetent”.  The human resource director must confront the owner about the way his son is treating the dealers so that this issue can be addressed because if he allows this to continue without saying something JC’s casino will not be able to retain dealers and the revenue will be directly affected.
Occupational stressor also known as “a job stressor is a condition or situation at work that requires and adaptive response on the part of the employee” (Spector, 2012 p. 283).  Staff shortage is an occupational stressor for the housekeepers because they are required to clean more room than normal.  Shortage of staff can also put stress on employees in other departments because they may be called in to help out when it is very busy to perform job functions outside of what they were hired for.  To minimize job stressor in housekeeping, human resources should take over the recruitment and hiring process and it should be done right away because hiring additional staff will alleviate the problems that are associated with being short staffed.
In conclusion, Organizations must fully understand the importance of creating a healthy work environment for their employees as it not only benefits the employees but the organization as well because a positive work environment ensures high morale and increase in employee productivity.  Motivational theories help organizations implement policies and procedures that focus on employee retention.  The reduction of counterproductive behavior is beneficial to the organization because it will eliminate the negative perception employees develop from being exposed to individuals performing negative behavior that goes against the beliefs of the organization.

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