Chrysler Group LLC (pronounced /ˈkraɪslər/) is a multinational automaker headquartered in the Detroit suburb of Auburn Hills, Michigan. Chrysler was first organized as the Chrysler Corporation in 1925.[3]
On June 10, 2009, Chrysler Group LLC emerged from a Chapter 11 reorganization and announced a plan for a partnership with Italian automaker Fiat.[4][5] Fiat holds a 25% stake in the new company, with an option to increase its stake to 35%, and up to 51%, if it meets financial and developmental goals for the company.[6] Fiat's stake cannot go beyond 49% until the government has been paid back in full
This research looked at the extent to which identified intrinsic and extrinsic motivational variables influenced the
retention and reduction of employee turnover in both public and private sector organisations. The research was
aimed at achieving the following objectives: identify and establish the key intrinsic and extrinsic motivational
variables being used by selected public and private sector organisations in retaining their employees; determine
the extent to which the identified intrinsic and extrinsic motivational variables are influencing employees’
retention and turnover in the selected organisations; and make recommendations to management of the
selected organisations on how to effectively retain employees and reduce turnover. The study adopted the
cross-sectional survey research design, investigating the extent to which selected motivational variables
influence employees’ decision to either remain or quit an organisation. Quantitative research design was used
and this design was chosen because its findings are generaliseable and the data objective. The study examined
two public and two private sector organisations in South Africa. The total population of the research comprised
1800 employees of the surveyed organisations with a sample size of 145 respondents. A self-developed
questionnaire, measured on a Likert Scale was used to collect data from respondents. The questionnaire had a
Cronbach alpha coefficient of = 0.85 suggesting that the instrument was reliable. The Chi-square test of
association was used in testing the hypothesis of the study. The result showed that employees in both public
and private sector organisations were, to a very large extent, influenced to stay in their respective organisations
by a combination of intrinsic and extrinsic motivational factors. The following motivational variables were found
to have significantly influenced employee retention in both the public and private sector organisations: training
and development, challenging/interesting work, freedom for innovative thinking, and job security.
Worldwide, retention of skilled employees has been of
serious concern to managers in the face of ever
increasing high rate of employee turnover. Today’s business
environment has become very competitive thus
making skilled employees the major differentiating factor
for most organisations. Organisations - both public and
private – rely on the expertise of their employees in order
to compete favourably and indeed gain competitive
advantage in the international market. However, recent
studies have shown that retention of highly skilled employees
has become a difficult task for managers as this
category of employees are being attracted by more than
one organisation at a time with various kinds of incentives. Furthermore, skilled employees in South Africa are
daily migrating abroad for better job conditions
(Gillingham, 2008). This phenomenon is having adverse
effect on investment as emigrating employees moved
client’s investments offshore.
Recent survey report revealed that South African
employees ranked amongst the best in the USA, Italy,
Germany, Brazil and Britain (Gillingham, 2008). This,
perhaps explains the reason South African best and
brightest employees are being constantly poached by
multinational organisations such as Daimler- Crystler,
BMW, Siemen, Unilever and many others. Against this
background, organisations will continue to lose valuable
employees to competitor organisations until managers
are able to identify and apply appropriate retention
strategies that will help in reducing the frequent turnover of
key employees.
Employee turnover occurs when employees leave their
jobs and must be replaced. Replacing exiting employees
is costly to organisations and destructive to service
delivery. It is therefore imperative for management to
reduce, to the minimum, the frequency at which employyees,
particularly those that are crucial to its operations
leave. Retention is a voluntary move by an organisation
to create an environment which engages employees for
long term (Chaminade, 2007). The main purpose of
retention is to prevent the loss of competent employees
from the organisation as this could have adverse effect
on productivity and service delivery. However, retention
of high performing employees has become more
challenging for managers as this category of employees
frequently move from one job to another as they are
being attracted by more than one organisation at a time.
Hendricks (2006) notes that employees with scarce skills
are in great demand by the South African government
and becoming difficult to source. When these categories
of employees are eventually sourced, they become even
more difficult for government to retain. It is not only
government that is finding it difficult retaining highly
skilled employees. The private sector managers also
admit that one of the most difficult aspects of their jobs is
the retention of key employees in their organisations
(Litheko, 2008). Most of the time when these employees
move, they migrate to competing organisations with the
knowledge and trade secrets acquired from their former
employers thereby creating an even more critical situa-
Samuel and Chipunza 411
tion for the latter (Abassi and Hollman, 2000). Empirical
studies such as Stovel and Bontis (2002) have shown
that employees, on average switch employers every six
years. This situation demands that management should
identify the reason/s for this frequent change of employment
by employees. Once this reason/s has been
identified, management can then device retention
strategies that will help in keeping essential employees
for a rather longer tenure.
While functional turnover (that is, bad performers
leave, good performers stay) can help reduce suboptimal
organisational performance (Stovel and Bontis,
2002), high turnover can be detrimental to the
organisation’s productivity. This can result in the loss of
business patronage and relationships, and can even
jeopardise the realisation of organisational goals. On the
other hand, Abassi and Hollman (2000) argue that
dysfunctional turnover (that is, good performers leave,
bad performers stay) damages the organisation through
decreased innovation, delayed services, improper implementation
of new programmes and degenerated
productivity. Such activities can radically affect the ability
of organisations to prosper in today’s competitive
economy, leaving even the most ambitious organisations
unable to succeed due to their inability to retain the right
employees (Stovel and Bontis, 2002).
Existing literature (Abassi and Hollman, 2000; Hewitts
Associates, 2006; Sherman et al. 2006) highlight reasons
for employee turnover in the organisations: hiring
practices; managerial style; lack of recognition; lack of
competitive compensation system; toxic workplace
environments. Others include lack of interesting work;
lack of job security; lack of promotion and inadequate
training and development opportunities, amongst others.
These are intrinsic and extrinsic motivational factors
which can assist managers to influence employee retention
in their organisations. The problem, however, is that
managers have failed in identifying and properly using
these variables as retention strategies thereby resulting
in the prevailing high turnover rate in the organisations.
On June 10, 2009, Chrysler Group LLC emerged from a Chapter 11 reorganization and announced a plan for a partnership with Italian automaker Fiat.[4][5] Fiat holds a 25% stake in the new company, with an option to increase its stake to 35%, and up to 51%, if it meets financial and developmental goals for the company.[6] Fiat's stake cannot go beyond 49% until the government has been paid back in full
This research looked at the extent to which identified intrinsic and extrinsic motivational variables influenced the
retention and reduction of employee turnover in both public and private sector organisations. The research was
aimed at achieving the following objectives: identify and establish the key intrinsic and extrinsic motivational
variables being used by selected public and private sector organisations in retaining their employees; determine
the extent to which the identified intrinsic and extrinsic motivational variables are influencing employees’
retention and turnover in the selected organisations; and make recommendations to management of the
selected organisations on how to effectively retain employees and reduce turnover. The study adopted the
cross-sectional survey research design, investigating the extent to which selected motivational variables
influence employees’ decision to either remain or quit an organisation. Quantitative research design was used
and this design was chosen because its findings are generaliseable and the data objective. The study examined
two public and two private sector organisations in South Africa. The total population of the research comprised
1800 employees of the surveyed organisations with a sample size of 145 respondents. A self-developed
questionnaire, measured on a Likert Scale was used to collect data from respondents. The questionnaire had a
Cronbach alpha coefficient of = 0.85 suggesting that the instrument was reliable. The Chi-square test of
association was used in testing the hypothesis of the study. The result showed that employees in both public
and private sector organisations were, to a very large extent, influenced to stay in their respective organisations
by a combination of intrinsic and extrinsic motivational factors. The following motivational variables were found
to have significantly influenced employee retention in both the public and private sector organisations: training
and development, challenging/interesting work, freedom for innovative thinking, and job security.
Worldwide, retention of skilled employees has been of
serious concern to managers in the face of ever
increasing high rate of employee turnover. Today’s business
environment has become very competitive thus
making skilled employees the major differentiating factor
for most organisations. Organisations - both public and
private – rely on the expertise of their employees in order
to compete favourably and indeed gain competitive
advantage in the international market. However, recent
studies have shown that retention of highly skilled employees
has become a difficult task for managers as this
category of employees are being attracted by more than
one organisation at a time with various kinds of incentives. Furthermore, skilled employees in South Africa are
daily migrating abroad for better job conditions
(Gillingham, 2008). This phenomenon is having adverse
effect on investment as emigrating employees moved
client’s investments offshore.
Recent survey report revealed that South African
employees ranked amongst the best in the USA, Italy,
Germany, Brazil and Britain (Gillingham, 2008). This,
perhaps explains the reason South African best and
brightest employees are being constantly poached by
multinational organisations such as Daimler- Crystler,
BMW, Siemen, Unilever and many others. Against this
background, organisations will continue to lose valuable
employees to competitor organisations until managers
are able to identify and apply appropriate retention
strategies that will help in reducing the frequent turnover of
key employees.
Employee turnover occurs when employees leave their
jobs and must be replaced. Replacing exiting employees
is costly to organisations and destructive to service
delivery. It is therefore imperative for management to
reduce, to the minimum, the frequency at which employyees,
particularly those that are crucial to its operations
leave. Retention is a voluntary move by an organisation
to create an environment which engages employees for
long term (Chaminade, 2007). The main purpose of
retention is to prevent the loss of competent employees
from the organisation as this could have adverse effect
on productivity and service delivery. However, retention
of high performing employees has become more
challenging for managers as this category of employees
frequently move from one job to another as they are
being attracted by more than one organisation at a time.
Hendricks (2006) notes that employees with scarce skills
are in great demand by the South African government
and becoming difficult to source. When these categories
of employees are eventually sourced, they become even
more difficult for government to retain. It is not only
government that is finding it difficult retaining highly
skilled employees. The private sector managers also
admit that one of the most difficult aspects of their jobs is
the retention of key employees in their organisations
(Litheko, 2008). Most of the time when these employees
move, they migrate to competing organisations with the
knowledge and trade secrets acquired from their former
employers thereby creating an even more critical situa-
Samuel and Chipunza 411
tion for the latter (Abassi and Hollman, 2000). Empirical
studies such as Stovel and Bontis (2002) have shown
that employees, on average switch employers every six
years. This situation demands that management should
identify the reason/s for this frequent change of employment
by employees. Once this reason/s has been
identified, management can then device retention
strategies that will help in keeping essential employees
for a rather longer tenure.
While functional turnover (that is, bad performers
leave, good performers stay) can help reduce suboptimal
organisational performance (Stovel and Bontis,
2002), high turnover can be detrimental to the
organisation’s productivity. This can result in the loss of
business patronage and relationships, and can even
jeopardise the realisation of organisational goals. On the
other hand, Abassi and Hollman (2000) argue that
dysfunctional turnover (that is, good performers leave,
bad performers stay) damages the organisation through
decreased innovation, delayed services, improper implementation
of new programmes and degenerated
productivity. Such activities can radically affect the ability
of organisations to prosper in today’s competitive
economy, leaving even the most ambitious organisations
unable to succeed due to their inability to retain the right
employees (Stovel and Bontis, 2002).
Existing literature (Abassi and Hollman, 2000; Hewitts
Associates, 2006; Sherman et al. 2006) highlight reasons
for employee turnover in the organisations: hiring
practices; managerial style; lack of recognition; lack of
competitive compensation system; toxic workplace
environments. Others include lack of interesting work;
lack of job security; lack of promotion and inadequate
training and development opportunities, amongst others.
These are intrinsic and extrinsic motivational factors
which can assist managers to influence employee retention
in their organisations. The problem, however, is that
managers have failed in identifying and properly using
these variables as retention strategies thereby resulting
in the prevailing high turnover rate in the organisations.
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