M.B.A THESIS PROPOSAL
An investigation of factors that influence emplo ees! retention in telecommunications companies in "im#a#$e% A &ase of Li'ui( Telecom "im#a#$e. )*+,+ - *+,./. Submitted in partial fulfillment of the requirements for degree of Master in Business Administration (MBA), BSAD 550 – Business Research Methods.
A#stract This study will assess the factors influencing employee retention in Zimbabwean Telecommunications companies with a particular emphasis on iquid Telecom
Zimbabwe! The purpose of the study is to assess the factors percei"ed by employees as influencing retention in these organi#ations$ assessing employers% psychological factors influencing retention and in"estigating different methods used by the organi#ations in retaining their best employees! Also the study aims at identifying constraints facing selected organi#ations in retaining their best employees! The study will use closed and open ended questionnaires, &ey informants as well as re"iew of documents from "arious libraries and online resources to collect secondary data! 'ata for this study will be drawn from ()* respondents using questionnaire and inter"iew methods! 'ata analysis will done quantitati"ely and qualitati"ely using Software +ac&age for Statistical Science (S+SS)!
&HAPTER O0E ,.+ I0TRO12&TIO0 A01 BA&34RO201 TO THE ST215 ,., Intro(uction This part pro"ides the bac&ground to the research problem$ statement to the research problem$ ob,ecti"es of the study$ research questions as well as significance of the research to policy, academia, and increasing &nowledge! ,.* Bac6groun( to the Research Pro#lem The retention of employees has been shown to be significant to the de"elopment and the accomplishment of the organi#ation%s goals and ob,ecti"es ( Alkandari and Hammad, 2009)! -etention of employees can be a "ital source of competiti"e ad"antage for any organi#ation! Today, changes in technology, global economics, trade agreements and the li&e are directly affecting employee.employer relationships! /ntil recently, loyalty was the cornerstone of that relationship ( ibid, 2009)! The loss of talented employees may be "ery detrimental to the company%s future success especially in telecommunications organisations where the demand for highly s&illed employees is on the rise! 0utstanding employees may lea"e an organi#ation because they become dissatisfied, under paid or unmoti"ated !o"", #99$%, and while trying to retain employees within the organi#ation they may present other challenges as well! They may demand higher wages, not comply with organi#ation practices, and not interact well with their other co1wor&ers or comply with their managers% directions! Besides these problems lac& of information about the employees% performance may complicate an organi#ation%s endea"or to retain producti"e employees! (!o"", #99$)
argued that without adequate information the organi#ation may not be able to distinguish producti"e wor&ers from non1producti"e ones! 2mployees often may ta&e credit for the successes and deflect failures to other employees and this is &nown as a moral ha#ard problem! 3n many instances companies may reward or punish employees for an organi#ation outcome for which they had no impact &err, #9'5%. 3nsufficient information about employees% performance may result in ad"erse selection by them (rossman and Hart, #9)$%. The better employees may mo"e to other organi#ations for better opportunities! The cowor&ers who cannot impro"e their positions are more li&ely to stay! This is especially possible when due to inadequate in formation outstanding performance is not rewarded! 4on1producti"e and producti"e wor&ers end up recei"ing the same or nearly the same compensation and pac&age of per&s because of management%s in ability to distinguish talented employees from the rest of the labor force in the organi#ation! The problem of attempting to retain talented members of the wor& force is further complicated because of bounded rationality (Simon, (567)! 3t is another result of asymmetric in formation where both the manager does not &now the information for which to as& from the employee and the employee does not &now what to pro"ide! Therefore, producti"e wor&ers cannot distinguish themsel"es from nonproducti"e co1 wor&ers! 2"en if an organi#ation is fortunate enough to retain talented employees, the company may still ha"e to cope with agency costs resulting from them and their colleagues! 8hen information about an employee%s acti"ities is difficult to gather, the employee may be moti"ated to act in his own interest which may di"erge from
the interest of the organi#ation! This di"ergence of interests results in costs to the organi#ation in the form of e9cessi"e perquisite consumption, shir&ing of ,ob responsibilities and poor in"estment decision ma&ing! *ensen and Mecklin+ #9'$% e9plained that it is in an employee%s interest to o"er consume per&s and shir& ,ob responsibilities of the firm if they are not sole owners of the organi#ation! Another area contributing to decreased employee satisfaction is that of a company%s moti"ational style! :or e9ample ,einber+ #99'% states that most companies relied in the past on two traditional strategies for managing turno"er! :irst, they raised wages until the situation stabili#ed! 3f that did not wor&, they increased training budgets for new hires and first1le"el super"isors! These solutions do not wor& anymore! :urthermore, s&illed employees in many African countries including Zimbabwe are migrating abroad on daily basis for better ,ob conditions (illin+ham, 200)%. :urthermore, e"idence from the implementation of the ;ritical 2mployee -etention Scheme (;2-S) adopted in <*(( suggests that departments were better able to attract and retain qualified professional, technical and managerial staff$ and encourage staff to underta&e further training to aspire for progression and to mo"e up the career ladder! =owe"er, the partial implementation of the ;2-S ga"e rise to unfulfilled e9pectations, engendering greater animosity towards the scheme and creating the perception that it was unfair and discriminatory!
,.. Statement of the Pro#lem -etaining top talent remains a primary concern for many organi#ations today especially in the telecom sector where the demand is "ery high and competition among the telecom companies is high! ;ritical analysis of wor&force trends points to an impending shortage of highly1s&illed employees who possess the requisite &nowledge and ability to perform at high le"els, meaning that organi#ations failing to retain high performers will be left with an understaffed, less qualified wor&force that ultimately hinders their ability to remain competiti"e ( Ra--a-ort, Bancro"t and .kum, 200/)! 'espite the "ast literature on employee turno"er, which is aimed at identifying factors that cause employees to quit (ri""eth, Hom and (aertner, 2000) much less is &nown about the factors that compel employees to stay! Maert# and ;ampion ((55>) noted relati"ely less turno"er research has focused specifically on how an employee decides to remain with an organi#ation and what determines this attachment! -etention processes should be studied along with quitting processes! Steel, (ri""eth, and Hom 2002% added that the fact that is often o"erloo&ed, but the reasons people stay are not always the same as the reasons people lea"e! -etention is a critical element of an organi#ation%s more general approach to talent management, which is defined as ?the im-lementation o" inte+rated strate+ies or s0stems desi+ned to increase 1ork-lace -roducti2it0 b0 de2elo-in+ im-ro2ed -rocesses "or attractin+, de2elo-in+, retainin+, and utili3in+ -eo-le 1ith the re4uired skills and a-titude to meet current and "uture business needs 5ock1ood, 200$%6.
2mployee turno"er occurs when employees lea"e their ,obs and must be replaced! -eplacing e9iting employees is costly to organi#ations and destructi"e to ser"ice deli"ery! 3t is therefore imperati"e for management to reduce, to the minimum, the frequency at which employees, particularly those who are critical to its operations lea"e! 2mployee retention is a "ital issue and challenge to all the organi#ations especially those who require one hundred percent connecti"ity and business uptime li&e telecommunications! There are numbers of factors which promote the employees to stay or lea"e the organi#ation! 3t may be e9ternal factors, internal factors and the combined effect of both! =uman resource practices counts a lot in this regard (Hassan et al, 20#0%. 'espite the fact that many studies ha"e been done to establish factors leading to employee staying or lea"ing the organi#ations, employee retention remain one of the greatest challenges that many wor& organi#ation including those in telecoms sector faces particularly in iquid Telecom Zimbabwe! =owe"er, there are no documented e"idences which indicate that the same study was done in establishing factors leading to employees% retention in telecommunications organi#ations! Therefore, this study aims to in"estigate main factors for the retention in Zimbabwe Telecommunications companies! ,.7 O#8ectives of the Research Stu( The ob,ecti"es the research study are di"ided into two main areas! These are the general ob,ecti"e and specific ob,ecti"es as [email protected]
,.7., 4eneral o#8ective The general ob,ecti"e of this study is to assess the factors influencing employees% retention in telecom companies in Zimbabwe!
,.7.* Specific o#8ectives i! To assess the factors percei"ed by employees% as influencing their retention in particular iquid Telecom Zimbabwe! ii! iii! To assess employer psychological factors influencing retention$ To in"estigate different methods used by the organi#ation in retaining their best employees in "arious departments$ i"! To identify challenges facing telecom organisations in retaining their best employees! ,.9 Research :uestions i! 8hat are the factors percei"ed by employees% as influencing their retention in telecom organi#ationsA ii! iii! 8hat are the employers psychological factors influencing retentionA 8hat are the methods used by the organi#ation in retaining their best employeesA i"! 8hat are the main challenges.constraints facing telecom organi#ations in retaining their best employeesA ,.; Significance of the Stu( The study is e9pected to ma&e contributions to the e9panding literature on issues related to the influence of moti"ation on employees% performance in Zimbabwean
Telecom organi#ations! -esults from the study will ha"e significance to policy ma&ers as well as in the academic front! The study will fulfill researchers% academic need of acquiring Master of Business Administration (MBA) degree! The thesis will also be used as an important reference material to other scholars who will use the research document for further reference! The future researchers will identify the gaps a"ailable for further studies! :urthermore, the study is e9pected to pro"ide &nowledge on the influence of moti"ation and incenti"es on employees% performance in telecom organisations! ,.< Structure of the Thesis This wor& will be organi#ed as [email protected]
1 The first chapter focuses on the introduction, research bac&ground, and statement of the problem, general ob,ecti"es, specific ob,ecti"es, and research questions as well as significance of the study! ;hapter two will deal with definition of &ey concepts, theoretical studies, empirical literatures and model of study! The third chapter forms the Methodology of the study! This chapter gi"es details of how the research will be conducted$ the tools and the research design used, the sampling procedure, data collection and procedures adopted! ;hapter four will gi"e details of the presentation of analysis and the discussion of data collected! ;hapter fi"e will be the summary, conclusion(s) and recommendation(s) of what comes out of the study as well as further areas for research!
Organi>ational factors?strategies?con(itio ns 1 e"el and competiti"eness of remuneration 10pportunities for personal de"elopment and ad"ancement 1 Supporti"e wor&ing en"ironment
&ritical Ps chological states of the emplo ees 129perienced meaningfulness of the wor& 129perienced responsibility for outcomes of the wor& 1Bnowledge of the actual results of the wor&
Emplo ee &onstructive retention @Cob satisfaction 1+erformance 13nternal moti"ation 1 Adherence to rules 1Teamwor&
1 Trust to the management
&onceptual frame$or6 for emplo ees= retention