Turnover impacts many areas of the organization. Such as Knowledge management, Organization development, Human resource management, operation management and organization leadership.
Since BPO organizations provide constantly innovate services which are based on strategies created by employees, knowledge must be retained, in a way that it can be stored and disseminated through the organization. If the turnover is high in the company this knowledge will not be retained in the organization and company will not be able to acquire competitive advantage over their competitors. Therefore it is important to ensure that the knowledge, from which wealth is created, is secured.
If an organization not successfully response to the environmental changes
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One factor that definitely impacts the productivity is high employee turnover. When the employees are constantly leaving the organization it is difficult to maintain the same level of output. That’s mainly because new employees need time to train and get used to the work before they reach full productivity. Therefore Turnover is very much related to operational management.
There is a relationship between employee turnover and leadership styles. Normally we are identified two types of leadership styles those are Transformational leaderships and Transactional leadership.
Transformational leaderships are defined as a leader who is able to stimulate, inspire and transform his or her subordinates to achieve extraordinary outcomes. Therefore employees who are working under him are having less intention to resign from the organization. Therefore transformational leadership is the key factor in reducing and mitigating turnover
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But can figure out many reasons for BPO Connect (pty) Ltd turnover which is more general to entire BPO sector. Recent Interview with human resource manager highlighted that a variety of reasons why employees leave their jobs. Evidence from the HR department of BPO Connect (Pty) Ltd specifies the following reasons for high turnover.
There are a range of factors that lead to job related stress, lack of commitment towards the organization and job dissatisfaction which cause employees to resign from the company.
One important issue is dissatisfaction with the immediate supervisor. The BPO Connect (Pty) Ltd is less than 15 years old and most of the employees are between the ages of 20 to 40. Because of the high turnover, people with only 6 months of BPO experience are often promoted to the position of supervisor to manage teams of 15 to 20 people. However, they receive insufficient training due to rapid growth and turnover, and lack significant managerial expertise, leads them to ineffective at
TRANSFORMATIONAL LEADERSHIP Transformational Leadership is defined as leadership style focused on effecting revolutionary change in organizations through a commitment to the organization’s vision. (Sullivan & Decker, 2001) Transformational leaders are usually given higher position and are known for their charismatic sense and ability to develop high visions and regards in the work they do. They often give their best performances due to the low morale or self esteem Example: Steve Job, Bill Gates and Ratan Tata. As the existentialist rightly said, we always have a choice, in doing what we already have done or doing that which we have never done.
Thirdly, I believe that flexibility is very important today with the employees, because if the working hours are not flexible, they tend to either do not prefer working here or when they get the opportunity they move out. So if wee summarize, in my experience I believe that wages, growth and flexibility are the main reasons that cause turnover in the
Transactional leadership General Schwarzkopf was commander-in-chief of the U.S. forces in Operation Desert Storm, responsible for tens of thousands of troops in Iraq and Kuwait. He used the rules and regulations of the military to coordinate operations on several continents. Vince Lombardi is best known as the coach for the Green Bay Packers. Under his leadership, the team never had a losing session. He used to run the Packers through the same plays in practice over and over again.
Transactional leadership typically maintains status quo and does not elicit change. Transformational leadership, in contrast, attempts to change the status quo by developing a vision for the future that appeals to the values and sense of purpose of followers. Transformational leaders teach followers to become leaders, pursuing humanistic and moral end values related to making a difference in the world. Some elements of power and influence approaches, such as expert and referent power (French & Raven, 1959), social influence (Cialdini, 1995), and transformational leadership (Burns, 1978), begin to transcend perspectives on leadership based solely on leaders as roles in a hierarchy.
Leithwood and Jantzi (1996) defined transformational leadership in terms of a process, by which higher levels of commitment to the organization and its goals were attained. Transformational leadership was the process of building commitment to organizational objectives and empowering followers to accomplish those objectives. Transformational leaders developed the members of the organization to their fullest potential. Wheatley (1999) defined transformational leadership, as a leader’s ability to focus those within the organization on the mission and challenges faced by the organization. Yukl (1999) claimed a transformational leader articulated the vision in a clear and appealing manner, explained how to attain the vision, acted confidently and optimistically, expressed confidence in the followers, emphasized values with symbolic actions, led by example, and empowered followers to achieve the
Their philosophy is “whatever-it takes” and delegates the frontline managers to lead “it is your business, your division, your market, your stores, your aisle and your customers (Home Depot 2009).” Finally , transformational leaders by definition seek to transform. Sometime when a organization does not transform it’s, employees become unhappy and leaders will
Transformational Approach Transformational leadership style work towards high levels of communication from a management to meet goals. Leaders are meant to motivate employees and augment productivity and efficiency through communication and high visibility. This style of leadership really does need the involvement of management to meet goals. Leaders focus on the big picture within an organization and delegate smaller tasks to the team to accomplish goals. Transformational leadership proves to be efficient not only in business, but in all other sectors where it is used.
2.2 Different types of leadership styles Leadership plays a vital role in order for an organization to succeed, by effectively managing and controlling employees the type of leadership style. The most universal leadership styles concern transactional, transformational, laissez-faire, democratic and authoritative. These styles are widely applied in different organizations
1.1 Introduction This study is intention to review the relationship between organizational culture (OC) and employee commitment (EM): A study on manufacturing company in Kulim Hi-Tech Park, Kedah, Malaysia. In-depth, this study chapter will introduce the overview of the topic with the introduction, research background, the problem statement, research question and objectives, hypotheses, a significance and scope of the study on manufacturing company in Kulim Hi-Tech Park, Kedah, Malaysia. Organization is a group of peoples to combine together to achieve the organizational goals. Every organization has the manager to assign duties to employee and relation between different activities of the organization and employees.
Transactional or Transformational Leadership Style Gates was both a transactional and transformational leader. As a transactional leader, he made sure to visit the new products teams and inquire challenging questions to the point that would make him satisfied and ensure that the team are on track and have a clear understanding about the aimed goal (Pamela Spahr, 2014). He is well known for his emphasis on rigid structure, hierarchy and his system of reward and punishment to achieve outcomes. His strict standards of what he wants is what made Microsoft successful and he ensures that his employees do not deviate from these standards (‘’Mindvalley academy blog’’, n.d.). In addition, Gates has a transformational leadership style.
They are enthusiastic individuals are usually seen as active, expressive and energetic. They are often optimistic and open to change with a quick and alert mind set. Transformational leaders in today’s society are better for the organization because in maintaining a business for the long term, leaders need to focus on the overall growth of originality and
“The study of history has been a study of leaders – what they did and why they did it” (Bass, 2008: 4). New contemporary styles of leadership have emerged that arguably are more successful in the long term (Dawson & Andriopoulos, 2014). This report critically evaluates different styles of leadership to determine if a transformational style will have a more decisive effect on employee motivation and organisational culture culminating in long term prosperity of the business. Fresh perspectives to leadership are required if organisations are to be successful in times of change while at the same time increasing employee morale (Conger, 1999). Studies done by Burns (1978) differentiates between transactional leaders and transformational leaders.
These were laissez-faire; transactional; and transformational leadership styles. The dependent factor was represented by the degree to which the organization has achieved its business objectives in the previous financial year. To discover the leadership styles that influence organizational performance, correlation analysis was employed. Correlations between the transformational-leadership factors and organizational performance ratings were high (0.518 to 0.696, P < .05), whereas correlations between the transactional-leadership behaviours and organizational performance were relatively low
The textbook defines productivity as the ratio of an organization’s output to its inputs (Dessler, Chhinzer, & Cole, 2013). Many HR issues typically relate to how effective the workforce is progressing. Furthermore, employees need to consider their level of productivity to ensure the business is running competently. If the productivity is low, employers and franchisers need to determine whether the issue is caused by the lack of work experience or resources. Tim Hortons realize an increase of minimum wage and this has resulted in many downsides.
Employees are the most important part for any organization. They are the associate degree and are the integral part of the organization, without the employees the company cannot imagine to grow and cannot additionally be ineffectual to realize something not even a single goal of the organization. Turnovers lead to more turnovers. Herd mentality is what men and women