STRATEGIC DEVELOPMENT OF ORGANIZATIONS IN THE AGE OF UNCERTAINTY

Employee Retention 3 2. Leadership 4 3. Problem Statement 4 4. Theoretical Framework 5 4. McClelland’s Theory of Achievement 5 4. Introduction I have selected “Leadership and Employee retention in the Age of Uncertainty” as my topic for this literature review explain the need for engaging employees in the age of uncertainty. Leaders face severe challenges in relation to employee retention in the age of uncertainty as a result of high employee turnover, financial growth, and limited set of skills. This also obligates them to develop resilience and effective strategies that will help in retaining skilled personnel in service. Retention of skilled staffs helps to attract and retain loyal customers who are key in avoiding costs of replacing staffs and employees (Aruna and Anitha 2015, pp. In this age of uncertainty, the managers have a great role to perform to ensure the organization is capable of operating and surviving in the current competitive environment.

The primary objective of staff retention is to safeguard the right number of workers from leaving the organization since it would have an adverse effect to the organizational performance both in short run as well as in the long run (Iqbal et al. pp. In this way, the company will retain the right set of skills thereby improving the competitive advantage of that company. Employee retention is also beneficial to the employees. Managers should have the ability to identify and retain skilled and committed employees to achieve overall performance. Problem Statement Managers and leaders influence commitment, employee motivation, and organizational culture. The decision of the two influences the performance and behavior of the employees hence may determine the level of employee permanency.

This study aims at exploring the empirical analysis done on the effect of leadership practices on the staff retention as well as employee turnover. Theoretical Framework 4. McClelland’s Theory of Achievement According to David McClelland, a man is moved by motivators. In the behavioral theory, McGregor explains the two management styles that are relationship oriented as well as task oriented style. However, in this concept, he argues that leadership practices express great assumptions on human nature hence are referred to as theories of human nature. The theory X assumes that people do not like work and lack the motivation for doing a good job thus they need a leader to guide them. The theory seeks to improve motivation by instilling pain and fear.

On the contrary, Gilley et al. Behavioral theory acknowledges two leadership behavior that is relationship oriented and task oriented. However, relationship-oriented leadership is preferred in the age of uncertainty. Methodology The literature review adopts an explanatory approach to bring out the primary insight on the effect of leadership practices on employee retention in the age of uncertainty. It achieves this by analyzing empirical studies to ascertain the effect of leadership approaches on the decision of workers to stay or leave an enterprise. Findings and Discussion The study explored different studies in an attempt to explain different leadership styles along with the level at which leaders could use these styles to mark the achievement of the teams and the organization as a whole.

Typically, successful companies understand and appreciate the contribution of employees hence engages them to achieve personal goals as well as corporate goals by communicating their roles clear and establishing targets along with the evaluation criteria (Sarwar and Abugre 2013, pp. They achieve this by giving clear and precise directions, instructions for meeting these goals as well as setting time schedules. The researchers are of the idea that these leaders can utilize one method of communication to interact with the subordinates. Furthermore, they believe that leaders have the specific role of spelling out responsibilities, defining objectives, planning, and measuring and controlling performance for short periods. The concept describes the task-oriented approach and motivation connects to each other to promote employee retention. pp. This process can be transmitted between organizations, shift in occupation and job positions and change between employment and unemployment state.

The studies explain different reasons for an employee to shift from one organization to another. Among the main factors that make employees leave include job stress as well as numerous stressors, job dissatisfaction and low levels of commitment Tillman (2013, pp. Furthermore, the style of leadership can be part of employee’s stress factor. The organization will not achieve employee retention whenever the workplace expectations conflict with the methods of meeting these expectations hence the need for implicit definition of employee responsibilities. An organization using a quantitative approach to manage human resources to address employee disenchantments could, in the end, promote turnover. To this effect, Terera and Ngirande (2014, pp. disapproves the use of quantitative approach by the managers seeking to manage their subordinates.

However, this approach is widely executed by the task-focused leaders. This may include manipulation of decisions of employees to promote commitment and retain them in spite of favorable job opportunities in other organizations. Employee turnover is a result of the manager’s behavior and does not affect the company (Aruna and Anitha 2015, pp. The organization, therefore, need to deal with the issue revolving around employee retention with a lot of considerations and should not be devolved to the HR department. Vaiman et al (2015, pp. argues that successful organizations are taking full responsibility to maintain employee retention and not leaving this to HR departments. The quality of rapport that employee upholds to the intermediate managers is directly proportional to their retention period within the organization.

Inept leadership reduces the performance of the employee, job commitment, job satisfaction, increase job stress, and increase employee turnover (Kruzich et al. pp. Moreover, the working culture of a given organization and leadership practices are the primary reasons for employee turnover in all industry (Ou et al. pp. The relationship-oriented leadership style is preferred because it helps to reduce and mitigate turnover. This is because it encourages employee participation and supports them both emotionally and socially. Therefore, the right leadership style promotes retention of the skilled and talented employees. Bibliography Ahmed, M. I. Compensation, benefits and employee turnover: HR strategies for retaining top talent.  Compensation & Benefits Review, 45(3), pp. Darma, P. S. and Supriyanto, A.  Journal of Applied Management and Entrepreneurship, 20(1), p.

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