Money and Staff Retention :: GCSE Business Marketing Coursework Essays

Doward (Guardian 2001) states â€Å"Sotheby’s having registered $178m of losses this year are spending $40m in a bid to retain key Heads of staff†. It might pay Sotheby’s to understand McGregor’s Theories X, Y and Schein`s Social theory as essential when looking for ways to motivate and retain staff. Theory X used financial rewards and punishments for untrustworthy employees involving company policy. Theory Y sees staff needing â€Å"care, independence, self-development and creative work, for company success.†(Cooper`1998). Schein`s social interaction helped staff â€Å"to obtain a sense of identity and belonging, wanting to be seen as meeting work expectations not merely receiving financial rewards†. Theory X relates more to Taylorism, whilst Theory Y/Social ideas follow Maslow`s idea of Self-Actualisation. Holden(1997)states â€Å" HR Manager’s must be able to forecast, plan, organise, monitor, motivate and control effectively †. Jane Wibberley (Senior Personnel Manager Marks & Spencer Southampton) believed in a mixture of Reward Management, Work Appraisal, Management Development and Security. Today’s Human Resource Manager will need to obtain commitment and recognition whilst offering reward and re-enforcement using recognised Employment regulations. Kizer`s (1987) Executive Stress Alleviators (e.g. Wellness Programmes)must be observed for commitment purposes. As to how managers retain key staff, local interviews from Marks&Spencer, Paris, Smith&Randall and Southampton Institute will reinforce that Hard HRM financial reward Practices are not the only way to keep key staff. Taylor`s rational-economic needs initiated the debate as to financial rewards being the sole motivator for staff along with Fordism. Contrary to this Maslow looked to Human requirement of interesting work being at the top of Hierarchical Needs Pyramid (i.e. Self Actualisation) with pay at the lowest. Bennett (1981) looked at motivation and commitment â€Å"as a mixture of Economic rewards, intrinsic satisfaction and social needs†, which Rollinson(1998) stressed â€Å"should be ongoing practices†. Makin(1996) looked beyond financial payments whilst Rose and Edmund Cadbury believed payment incentive schemes â€Å"eliminated judgement and initiative†(Statt`1994) now so vital to HRM. Mullins(1999) states, â€Å"Managers must provide challenging, creative work, unblocking workers growth needs, allowing sufficient opportunity for key workers to have more opportunities to satisfy existence and relatedness needs†, (e.g. promotion). Alderfer supported this, whilst Locke/Hertzberg looked at job enrichment. Adams(1995) believed Managers should ensure â€Å"equitable fairness amongst staff in payment and treatment as underpaid, undervalued staff have less commitment†. The majority of these studies (e.g. Hawthorne Plants 1920/30`s) involved manual staff so there relevance in retaining Executive staff is questionable.