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UMAC 2017 | IRM Coursework HRM - Employee Commitment, Dr. Matthew Yap

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UMAC 2017 | IRM Coursework HRM - Employee Commitment, Dr. Matthew Yap

  1. 1. Employee Commitment MGMT712 Managing Human Resources & Personnel Psychology in Integrated Resorts Date: 9-Nov-2017 Mentor: Dr. Matthew Yap Student: MB 74686 CHOI Ka Heng, Suki MB 74664 WANG Qian, Jessica MB 74684 Zack FONG MB 74628 Junying LIN, Jade
  2. 2. Contents •Part 01 / Introduction - What is Employee Commitment •Part 02 / Precondition (Engagement) •Part 03 / Types of Employee Commitment •Part 04 / Measurement of Employee Commitment •Part 05 / Maintaining Employee Commitment •Part 06 / Employee Commitment in Macau Casino Industry •Part 07 / Benefits of Employee Commitment •Part 08 / Conclusion •Part 09 / Encountered Challenges •Part 10 / Referrences
  3. 3. What is employee commitment 01
  4. 4. •A sense of attachment (Employee Psychology) •Resulting loyalty to an organization ( Employee Behaviour) Definition (Source: http://www.mbabrief.com/what_is_employee_commitment.asp)
  5. 5. 02 Engagement
  6. 6. Precondition – Employee Engagement •Engagement Definition: high affective commitment; Be willing to work go beyond the duty. •Engagement drives commitment •Watch Video (Source:http://www.mnestudies.com/human-resource/employee-engagement- commitment)
  7. 7. 03 Types of employee commitment
  8. 8. Three Component Model of Commitment Affective Commitment Normative Commitment Continuance Commitment (source:John Meyer and Natalie Allen, Three component model of commitment)
  9. 9. Affective commitment Affective commitment relates to how much employees want to stay at their organisation. (Identify with the organisational goals, fit into the organisation, satisfied with job.) It means an affective emotional attachment towards an organisation. (Source:https://www.effectory.com/knowledge/themes/employee-commitment-survey/)
  10. 10. Normative commitment Normative commitment relates to how much employees feel they should stay at their organisation. ( Disastrous Consequences ) A moral obligation to remain with an organisation. (guilt ) (Source:https://www.mindtools.com/pages/article/three-component-model- commitment.htm)
  11. 11. Continuance commitment •Fear of Loss •Weigh up the pros and cons of leaving your organization. •It relates to how much Employees feel the need to stay at their organisation •The recognition of costs associated with leaving an organisation. (Source:https://www.mindtools.com/pages/article/three-component-model- commitment.htm)
  12. 12. 04 How to measure employee commitment ?
  13. 13. Employee Commitment Survey •How the employees committed to the company •What way they are committed ( Affective? Normative? ) Limitation: •Hard to develop an effective questionnaire •Employee may not be honest or cheat in the survey •Not accurate and reliable result (Source:https://www.effectory.com/knowledge/themes/employee-commitment-survey/ )
  14. 14. Observation:360 Review •Observation: Direct and Effective •Attachment to Company: Can be perceived 360 Review: •Feedback opportunity •A group of coworkers to provide feedback (Source:https://www.effectory.com/knowledge/themes/employee-commitment-survey/)
  15. 15. (Source:https://www.effectory.com/knowledge/themes/employee-commitment-survey/) Observation:360 Review Advantages: •Comprehensive and pertinent Information Shortcoming: •Personal opinions --> hard to avoid prejudice and bias •Time and resource costly •Upper level staffs → Authentic reviews from subordinates?
  16. 16. 05 Suggestions to maintain employee commitment
  17. 17. Fitting in (Source:https://www.effectory.com/knowledge/themes/how-to-increase-employee- commitment/https://c.edu.au/how-to-increase-your-employee-commitment-and-loyalty/ ) Fit In Well Better Connection & Involvement Remain with the organization & Be more responsible
  18. 18. Clear Company Objective •Help employees make better decisions at work •Adapt their contribution to the collective goal Involve Employee in Company-wide Decision •Clarify employees thoughts and feelings •Make employees feel valued and involved •Help to ensure their support of the execution of decisions Fitting in (Source:https://www.effectory.com/knowledge/themes/how-to-increase-employee- commitment/https://c.edu.au/how-to-increase-your-employee-commitment-and-loyalty/ )
  19. 19. Encourage Team Bonding •Encourage the development of a more positive work environment and productivity •Enhance the overall well-being Fitting in (Source:https://www.effectory.com/knowledge/themes/how-to-increase-employee- commitment/https://c.edu.au/how-to-increase-your-employee-commitment-and-loyalty/ )
  20. 20. Development Map up Career Plan •Employee: See the prospective =>More likely to stay longer with the company and devote themselves •Employer: Match employees’ role with their future prospects Create Learning Opportunity •Employee who interested in advancement => Want to learn new things and create value in their position •Employer: Provide education opportunity =>Make their employees’ professional development a part of their personal goals and objectives source:https://www.capital.org/s/content/a0Y410000058FBdEAM/blog10-key-strategies- to-increase-employee-commitment-and-retention )
  21. 21. Communication Communication •Minimize misunderstanding •Help to ensure the employees are happy to work Manager/Supervisor: •Receive appropriate training in management and people skill (Source:https://www.capital.org/s/content/a0Y410000058FBdEAM/blog10-key-strategies- to-increase-employee-commitment-and-retention )
  22. 22. Communication (Source:https://www.capital.org/s/content/a0Y410000058FBdEAM/blog10-key-strategies- to-increase-employee-commitment-and-retention ) Provide Feedback: What they are succeeding? What requires more attention? Ask for feedback: What they want more? What they want less? Show they are listening
  23. 23. Salary and Benefit Fair and Competitive Salary Stay informed on what other companies are paying for similar work Benefit Offer benefit to employees when the company has business growth Recognition: Take extra time and resource to recognize employee publicly A small recognition can go a long way to retain an employee
  24. 24. Work-life Enrichment Work-Life conflict •Multiple roles in their works and life •If their work impose too many demands and requirements, they may not be capable with the roles in their life. Work- life enrichment •Reasonable workload •Leaves employee energized instead of exhaustion •Enhances their personal identity rather than diminishes it •Helps them not only to survive but thrive in their life (source:https://www.linkedin.com/pulse/employee-resource-groups-work-life-enrichment-sabatini- fraone?trk=pulse-det-nav_art https://www.linkedin.com/pulse/employee-resource-groups-work-life-enrichment- sabatini-fraone?trk=pulse-det-nav_art」)
  25. 25. Work-life Enrichment (source:https://www.linkedin.com/pulse/employee-resource-groups-work-life-enrichment-sabatini- fraone?trk=pulse-det-nav_art https://www.linkedin.com/pulse/employee-resource-groups-work-life-enrichment- sabatini-fraone?trk=pulse-det-nav_art」) Positive effect on their life Skill Growth Changing of mood to be positive
  26. 26. 06 Employee Commitment in Macau Casino Industry
  27. 27. Employee Commitment in Macau Casino Industry •The Gaming Industry amounted about 25% of Macau workforce -- (Chi & Zheng, 2009) •The Causal Order explains that employee commitment is interrelated with job satisfaction & affect directly on turnover rate. •Research indicates casino workers in Macau has higher commitment than other industries. 2016 2017 Workforce in Gaming Industry 55,794 55,726 Total Resident Workforce 284,400 288,800 Percentage 19.61% 19.30% Source: DSEC (http://www.emeraldinsight.com/doi/full/10.1108/09596110910967809
  28. 28. The Causal Order of Satisfaction and Commitment Currivan, D. B. (2000). The causal order of job satisfaction and organizational commitment in models of employee turnover. Human Resource Management Review, 9(4), 495-524. http://dx.doi.org/10.1016/S1053-4822(99)00031-5
  29. 29. High Job Satisfaction = High Commitment •Most of casino workers has high job satisfaction due to positive working environment & satisfied salary. •Research shows positive job satisfaction leads to positive commitment. •Survey indicated half of casino workers are <5 years working experience; another half are >5 years. (Source: Relationships among Job Satisfaction, Organizational Commitment, and Turnover Intention: Evidence from the Gambling Industry in Macau Jen Hung Wang1 , Kuan Chen Tsai2 , Luo Jia Ru Lei1 , Im Fan Chio1 , Sut Kam Lai1)
  30. 30. High Commitment = Low Turnover Tendency •As casino workers are committed to the company, they have lower turnover tendency. •Findings shows that employee >5 years working experience with current company has much higher commitment and low tendency of leaving; <5 years working experience has lower commitment and higher tendency of leaving. •Background research shows that most of casino workers’ highest education level is high-school graduates. Therefore indicating casino workers most likely will stay within gambling industry instead of looking for job opportunities of other nature. This may explain higher job commitment among casino workers. (Source: Relationships among Job Satisfaction, Organizational Commitment, and Turnover Intention: Evidence from the Gambling Industry in Macau Jen Hung Wang1 , Kuan Chen Tsai2 , Luo Jia Ru Lei1 , Im Fan Chio1 , Sut Kam Lai1)
  31. 31. High Job Satisfaction = High Turnover Tendency •Research shows higher job satisfaction but is also proportional to high turnover tendency, which is not consistent with the Causal Order. •This may explain by abundant of job opportunities in Macau casino, higher pay offered by other company attracts workers to leave their current job despite they are satisfied and committed.—( Carsteon and Spector ,1987) •Low promotion rate among casino workers is a contributing factor to high turnover rate. (Source: Relationships among Job Satisfaction, Organizational Commitment, and Turnover Intention: Evidence from the Gambling Industry in Macau Jen Hung Wang1 , Kuan Chen Tsai2 , Luo Jia Ru Lei1 , Im Fan Chio1 , Sut Kam Lai1)
  32. 32. The Derivative of Macau Casino Workers in Job Satisfaction, Commitment, Turnover High Job Satisfaction = High Commitment High Commitment = Low Turnover High Job Satisfaction = High Turnover (Source: Relationships among Job Satisfaction, Organizational Commitment, and Turnover Intention: Evidence from the Gambling Industry in Macau Jen Hung Wang1 , Kuan Chen Tsai2 , Luo Jia Ru Lei1 , Im Fan Chio1 , Sut Kam Lai1)
  33. 33. 07 Benefits of Employee Commitment
  34. 34. Benefits of employee commitment Benefits $ 1. Increased job satisfaction (Vandenberg & Lance 1992) 3. Increased total return to shareholders (Walker Information Inc., 2000) 4. Increased sales (Barber et al., 1999) 2. Increased job performance (Mathieu & Zajac, 1990)
  35. 35. Benefits of employee commitment 1. Decreased employee turnover (Cohen, 1991) 2. Decreased absenteeism (Cohen, 1993, Barber et.al., 1999) 3. Decreased intention to leave (Balfour & Wechsler, 1996) 4. Decreased intention to search for alternative employers (Cohen, 1993) (source:http://www.gpmfirst.com/books/project-success/employee-commitment-and- participation)
  36. 36. 08 Conclusion, Encountered Challenges, Q&A, References
  37. 37. Conclusion ◆Identify 3 types of employee commitment ◆Mention the survey and 360 review to measure employee commitment ◆Indicate to 5 ways to maintain high employee commitment ◆Share the short case about employee commitment of Macau casino industry Employee commitment effects on employee performance, turnover and absence, and via its influence on customer attitudes Affective commitment - the most potential benefit for an organization Commitment is a two way process – organization & employee
  38. 38. Encountered challenges •Limited Resources for the measurement of employee commitment. •Spent long time to find the short case related to employee commitment •Distinguish three types of employee commitment. •Limited research within Casino industry on employee commitment. •Difficulty of gathering for discussion among project members. •Project members has different style of presentation & opinion. •Blurred motion between employee commitment & engagement.
  39. 39. Q & A? ?
  40. 40. THANKS PPT模板下载:www.1ppt.com/moban/ 行业PPT模板: www.1ppt.com/hangye/ 节日PPT模板:www.1ppt.com
  41. 41. Reference Nik Penhale Smith (2016) “ How to Increase Employee commitment” https://www.effectory.com/knowledge/themes/how-to-increase-employee-commitment/ Helen Sabell (2016) “How to Increase Employee Commitment and Loyalty” https://collegeforadultlearning.edu.au/how-to-increase-your-employee-commitment-and- loyalty/ Capital (2017) “10 Key Strategies to Increase Employee Commitment and Retention” https://www.capital.org/s/content/a0Y410000058FBdEAM/blog10-key-strategies-to- increase-employee-commitment-and-retention Jennifer Fraone (2016)” Employee Resource Groups and Work-Life Enrichment” https://www.linkedin.com/pulse/employee-resource-groups-work-life-enrichment-sabatini- fraone?trk=pulse-det-nav_art」
  42. 42. Reference Meyer, J. P. (n.d.). Employee commitment: an introduction and roadmap. Handbook of Employee Commitment, 3-12. doi:10.4337/9781784711740.00009 Employee Engagement and Commitment. (n.d.). Retrieved November 01, 2017 http://www.mnestudies.com/human-resource/employee-engagement-commitment Cohen A (1993), ‘Age and tenure in relation to organisational commitment: A meta- analysis’, Basic and Applied Social Psychology, Vol. 14, pp. 143-159 6 Ways You Can Benefit From Employee Engagement. (2013, May 27). Retrieved October 23, 2017 https://explorance.com/2013/05/6-ways-you-can-benefit-from-employee-engagement-2/ Employee Commitment and Participation. (2015, March 30). Retrieved October 30, 2017 http://www.gpmfirst.com/books/project-success/employee-commitment-and-participation/
  43. 43. Reference Relationships among Job Satisfaction, Organizational Commitment, and Turnover Intention: https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8& ved=0ahUKEwiShtjX- Z_XAhVBoZQKHcVlCHUQFggnMAA&url=http%3A%2F%2Fredfame.com%2Fjournal%2F index.php%2Fbms%2Farticle%2Fview%2F1280&usg=AOvVaw3SJfqabY8pX- 1guWmbfUzq Currivan, D. B. (2000). The causal order of job satisfaction and organizational commitment in models of employee turnover. Human Resource Management Review, http://www.sciencedirect.com/science/article/pii/S1053482299000315
  44. 44. Mathieu J, Zajac D (1990), ‘A review and meta-analysis of the antecedents, correlates, and consequences of organisational commitment’, Psychological Bulletin, Vol. 108, pp. 171-194 Vandenberg R, Lance C (1992), ‘Satisfaction and organisational commitment,’ Journal of Management, Vol. 18, pp. 153-167 Barber L, Hayday S, Bevan S (1999), From people to profits, IES Report 355 Walker Information Inc (2000), Employee commitment and the bottom line: Ethical Issues in the Employer-Employee Relationship, Work, USA. Cohen A (1991), ‘Career stage as a moderator of the relationship between organisational commitment and its outcomes: A meta-analysis’, Journal of Occupational Psychology, Vol. 64, pp. 253-268 Balfour D, Wechsler B (1996) ‘Organisational commitment: Antecedents and outcomes in public organisations’, Public Productivity and Management Review, Vol. 29, pp. 256-277 Reference

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