Organizations clearly knowing the human resource practices which have

Organizations
achieve sustained high performance through the systems of work they adopt and
this entails improving performance through the people they have employed and
also through the development and implementation of excellent performance
culture. Today’s organizations must consider how human resources function can
create value to the organization. If they want to retain them and this means
clearly knowing the human resource practices which have the greatest contribution
to employee retention.

This
chapter gave the HRM practices and the various theories together with
a conceptual framework that seeks to explain their diverse links to employee
retention. The various related literature on HRM discipline their influence on
employee retention together with related past studies done and their various
gaps are critically analyzed.

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 2.2 Theoretical Framework

The
study was based on the expectancy theory, theory X and Y and Maslow’s Hierarchy
of needs theory.

2.2.1 Expectancy Theory

This
theory is built on the concept that the commitment of employees in an
organization should be equivalent to their expectations which they need to
receive in turn. Commission compensation structures leverage this theory by
allowing employees to earn as much money as they desire, completely based on
their job performance (Ingersoll, 2001). Making sure that employees always
expect future pay raises and potential job promotions can keep them working hard
to achieve personal goals.

According
to Gilbert (1978), if employees expect little compensation and no growth
opportunities in return for their level of commitment
usually becomes too low and this makes them to start looking for new employers
who can meet their expectations hence leading to high employee turnover.
Expectancy is the
probability that a particular action will lead to a required outcome. If the
employee has a particular goal, some behaviour has to be produced to accomplish
that goal. In any organization employees usually gauges the various behaviours
and after this process they usually select those behaviours that are desirable
to accomplish their goals (Vroom, 2009). Hence employers should always their
level best to create an enabling environment which will change the employees’
perception and also boost the expectancy level and this can be achieved through
effective communication and efficient rewarding systems. Therefore this theory
emphasizes on the relationship which exists between the organization goals and the
employee expectations and it also put into consideration on the difference
between employee motivations in the place of work which has a great
relationship with employee turnover. The theory supports the study that
favourable HRM discipline motivate employees and therefore perform better.
Expectancy theory argues that when employees expect better rewards they are
excited to work and prefer staying with the employer longer hence low labour
turnover.

2.2.2.
Theory X and Theory Y

Theory
X and Theory Y represent two opposing ends of the motivation spectrum. Theory X
is built on the principles that employees are usually motivated by either
internal or external factors for them work while theory Y works on the
principle that employees usually work due internal motivation hence they strive
to achieve goals through their skills and experience(Ruhland, 2001). Neither
Theory X nor Theory Y is inherently better than the other.

Rather,
the appropriate theory relies on work arrangement and the type of employees an
organization is working with. Applying the wrong theory in your workplace can
disappoint, confuse and aggravate employees, leading to increased employee
turnover (Abelson et al, 1984). For those employees who are self-motivated and
who usually work to improve their experience do not necessarily sticky on the
work arrangement but instead they work under minimal supervision. This theory
supports the idea that favourable internal and external human resource
management practices motivate employees and make them perform their duties
diligently and improve the performance of the organization.