Benefits models can be used to obtain better training outcomes for the same amount of money. The benefits model is also used to compare the relative benefits of two or more training approaches at a given cost level. One of the most important facts that must be established during a benefits analysis is the cost implications of inadequate training (Van Dyk, et al., 2001:320).
The second step in designing training evaluation is to be clear about the objectives and goals of the training programme. This is the most important step. One of the primary reasons for the evaluation of training is to establish whether the goals of the programme have been achieved. Unless these goals are clearly spelled out from the beginning, meaningful evaluation after the completion of the programme will be impossible (Van Dyk et al., 2001:332).
4.13 SUMMARY
In this chapter, various measures were discussed in relation to the retention of employees, such as compensation systems and benefits, health and safety, the working environment, employee training, management of staff development, performance management, appraisal, and the role of trade unions.
It has emerged that managers should possess an in-depth knowledge of employee motivation strategies. This will be possible only through a thorough assessment of their own developmental needs so that training can be targeted at empowering managers to be better equipped to motivate employees for superior performance.
Managers need to continuously modify their leadership styles, depending on their employees’ ability to take responsibility for their own actions. This is a dynamic relationship that needs constant monitoring and adaptation on the part of the manager.
Failure to use the appropriate leadership style will affect the level of motivation of employees. Institutions need to invest in the training and development of their managers to better equip them to implement motivational strategies so as to reduce turnover and ensure the retention of employees.
According to the literature consulted, turnover can be involuntary or voluntary. It is perceived that job satisfaction positively correlates with organisational commitment, and negatively with intentions to leave and actual turnover. Employees’ decisions to leave can be influenced by many factors, such as internal/external antecedents and employee specific antecedents. Both direct and indirect costs are involved in employee turnover, which can be either financial or non-financial (such as employee morale), which all have an overall negative impact on the organisation. Further causes of turnover were identified as job burnout, stress, work-life balance, and pay benefits.
Turnover was discussed as offering promotional opportunities for other staff and new ideas from the newly hired, as well as cost savings.
Retention was described as a voluntary process between employers and employees and has become an essential part of day-to-day activities for management in order to keep the ‘cream of the crop’ and maintain a competitive advantage. The factors influencing the retention of knowledge workers were identified and discussed, also as relating to employee needs, the work environment, responsibilities, supervision, fairness and equity, employee development and a feedback culture. The challenge of employee loyalty and job mobility was discussed as a universal challenge and then as a challenge of generational issues in retention. A number of factors to consider when attracting and retaining knowledge workers were highlighted, such as compensation, job characteristics, training and development, supervisor support, career opportunities and work/life policies.
There is evidence that indicates that all the items discussed above are in one way or another interlinked. In other words, they cannot be treated in silo’s. For example, paying the highest salaries may not be enough to retain talented employees in government if issues such as working conditions are ignored. Therefore, this supports the argument that employee retention requires a holistic approach by the organisation.
Furthermore, this chapter highlighted in the literature review that high staff turnover levels may seriously affect the effectiveness of an organisation, if not addressed by management. Remuneration is one of the key factors affecting staff turnover. If employees are not satisfied with what they are paid, they normally leave to seek greener pastures. Employees need to be appraised in order to rate their performance and improve competence. Job dissatisfaction leads to increased staff turnover, which creates work overload for the remaining staff members. Performance management systems will be discussed in the next chapter.
CHAPTER FIVE
PERFORMANCE MANAGEMENT SYSTEM
5.1 INTRODUCTION
The democratic South African government is obliged to bring about a visible and tangible improvement in the provision of public services to all South Africans. It therefore must also extend services to historically neglected communities. It must also strive to ensure that the economy is geared for quality and growth, in every aspect of government; these challenges demand the development of a new ethos of service delivery. To achieve these goals, public officials are also required to improve their performance.
In this chapter, a theoretical overview of performance management is presented to create an understanding of the importance of performance management systems in organisations. A literature overview and a theoretical framework on performance management, focusing on performance management establishment, principles, objectives, systems, training, appraisals and benefits, are presented. The chapter concludes with a synopsis of the literature reviewed.