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An Investigation into the Relationship between Employee Retention Policies and Employee Loyalty; a Case Study from the Pharmaceutical Sector (GSK)

Table of Contents

CHAPTER ONE INTRODUCTION

1.0

Introduction

Employees are very important asset of an organization (Armstrong, 2004). These are the resources of an organization that play a very important role in the success of the organization. The retention of employees within the organization is considered important for the progress of the organization. This study focuses on the retention of employees with in the pharmaceutical industry of the United Kingdom. This chapter presents the background to the whole research paper. 1.1 Background of Topic

In the field human resource management retention is an important area being studied because of many reasons. There is good number of research studies that discuss the topic of retention. Retention means retaining an existing employee within the organization for a longer period of time. One of the most important reasons to retain employees is to minimize the turnover cost. Owning to high cost of termination, there is shift in the bargaining power of the employer. As they incur considerable cost on employee training so bargaining power of employee has been increased, as they never want to lose their trained employees. Turnover, not only increases the organizational cost but also effects many inter organizational networking relationships of the employees. Like revising reporting relations with employees may be chaotic for the cultural norms of the organization. Thus, employee termination is one of the critical issues to be addressed and employee retention programs, is addressing this issue in an effective manner. In order to take retaining initiatives within the organization, employer must have a deep and systematic review of the personalities and cultural norms of his organization. A systematic review is required to find out the individual interests that enable the employers to keep their employees psychologically committed and retained for a longer period of time. Employee retention depends upon many factors. If employees are not paid satisfactory compensation, they can leave the organization (Coff, 1997). In order to keep the employees retained within the organization, employee satisfaction is the key. If an employee is satisfied with his work and organizational policies, procedures and working condition then there is a high probability that he will never want to quit his existing organization. He will feel the high level of organizational commitment and loyalty. As human resource (HR) is the most important asset of any organization so investment in this asset of the organizations, always resulted in a high return ratio (Armstrong, 2004). Thus, this is the reason that organizations are investing a considerably good amount of money in order to make their employees satisfied. They have taken the title of internal customer, in order to represent the importance of their role within the organization. Decrease in employee satisfaction causes the productivity loss and in terms, it decreases the customer satisfaction.

It also increases the organizational cost due to increase in the employee turnover ratio (Heskett, Sasser and Schlesinger 1997). As the area gain importance, many academicians explored different attribute of retention program. One of these research contributions is the study of Cappelli, (2000). This study has identified many factors which need to be prioritized in order to retain the employee within the organization. These attributes include the career advancement options, good working conditions, work life balancing incentives. Cole (2000) stated that the organizations where employees have some sense of self -actualization and self-accomplishment, they are highly motivated to explore their potentials to their maximum. The factors enforcing employees to retain within the organization are growth or career opportunities, incentives and benefits and training and development (Cole, 2000). Similarly, loyal employees are also very desirable by the employers, for last few years. But there is a downward trend in the number of loyal employees because of many reasons. In todays competitive business environment, there is an enormous competition for the greater market share, an upward trend of going global, and a fight for more and more profit increments. In order to decrease their overall costs of operations, organizations usually made unrealistic decisions. These decisions may include the loss of loyal and experienced employees, as the advent of technology calls for downsizing in order to maximize their profits in a rational way (Bob, 2008). Loyalty is required to maximize the employee effort for an organization to make it efficient and effective. Superior performance can be achieved by developing the employees towards their career achievements (Christopher, 2007). Developing and orienting employees will make the employees loyal and committed (Sussman 2006). Organizational and individual goals are not contrasting in nature, management need to align the individual career goals with organizational progress goals and objectives. In this way organizational career advancement will ultimately be linked with organizational performance improvement (Donald, 1980). But expectations go in vain when such trained and developed employees are not retained within the organization. So in order to compensate organizational loss of skilled workers, organizations need the high level of loyalty with in their internal customers. Retention of employees has become key factor in the success of the organization. It instills loyalty in the employees of organization. It takes more cost and effort to hire new employees and to train them. It is better for the organizations to retain their present employees in order to gain competitive advantage in the market by utilizing their skills (Mcshane, 2008). High level of uncertainty and change is observed within the pharmaceutical industry of UK. Growing health concerns regarding the safety of drugs, created by the high level of inspection and growing research interests have placed the pharmaceutical organizations at the edge of uncertainty. And it has resulted to decreasing the overall profit of such firms. One of the problems with these firms

is regarding talent management. Currently they are not focusing on attracting the new talent within the industry (Cogent, 2010). This study is focused on hiring and retaining new talent at a relatively lesser cost. This particular research will investigate employee retention policies and their affect on loyalty of employees within pharmaceutical industry of United Kingdom. This research is focused on employee retention and employee loyalty in GSK, a renowned pharmaceutical company operating in United Kingdom. 1.2 Research Aims and Objectives

Retention of employees is considered to be critical factor in the progress of an organization. Pharmaceutical industry has many opportunities to explore. This particular research is focused on Human Resource Management field. The aim of this research is to explore employee retention policies and their impact on the loyalty of employees in pharmaceutical industry of United Kingdom. The objectives of this research are as follows:

To investigate the polices of organizations from literature review for retaining To find out the relationship between employee retention and employee loyalty within To identify the factors affecting employee loyalty or employee commitment within To propose some recommendations to the management of GSK for retaining employees

employees and their impact on employee loyalty

the pharmaceutical industry.

GSK.

and making them loyal to the organization 1.3 Research Question

The whole research is based on the research questions so it is very important to design appropriate research questions. Inappropriate research questions can produce wrong invalid research. For this particular research, researcher has developed following research question.

What is the relationship between employee retention policies and employee loyalty in

pharmaceutical industry? 1.4 Significance and Scope of Research

The research is significant for the researcher in order to complete his academic course. It will be beneficial for the researcher to transform his theoretical knowledge into practical knowledge. The research is conducted to find the relationship between employee retention policies and employee loyalty in the pharmaceutical industry in United Kingdom. The research will explore the important practices of organizations in order to keep the employees with the organization. The research scope is limited to the pharmaceutical industry only. Pharmaceutical industry is becoming very competitive and organizations need to retain their key employees with them in order to enhance their output. The research is significant for the pharmaceutical sector for improving policies of employee retention. The organizations can improve the level of employee loyalty by considering the recommendations of this research. Overall the research is significant for researcher as well as for organization selected for study.

1.5

Overview of Organization

The research is focused on GlaxoSmithKline plc. It is based in United Kingdom and operating across the world in pharmaceutical business. Headquarter of the company is in London. GSK stands at number three in the world in pharmaceutical companies in terms of revenues. The first pharmaceutical company in terms of revenues is Johnson & Johnson and the second largest pharmaceutical company is Pfizer. Company produces a number of products for controlling a number of diseases like cancer, diabetes, and mental health. GSK has a healthcare division that manufactures and markets a number of products in healthcare division. GSK is listed in London Stock Exchange. It stands at number five in London Stock Exchange.

1.6

Structure of Research

The research is composed of five chapters. All the chapters are focused on a specific agenda. The chapters are linked to each other so that a coherent piece of work can be produced. The first chapter of the research is Introduction. This chapter presents the overview of the whole research. What researcher wants to explore is described in this chapter of research. This chapter presents the background of the research topic. Aim of research, its objectives and research questions are also explained in the introduction of research. The overview of the organization on which research is being conducted is also presented in this chapter. The introduction elaborates the scope and

significance of the research. The whole structure of the research is also presented in this chapter. (Summary of next chapters will be presented after completion of research.)

1.7

Summary of Chapter

The research is focused on employee retention and employee loyalty in pharmaceutical industry of United Kingdom. The chapter presents the introductory overview of the research. The background of the research along with research aims, objectives and research question is elaborated in this chapter. Significance and scope of the organization is also highlighted in this chapter. The chapter presents an overview of all the chapters of research paper. This chapter also elaborates the overview of the GSK.

CHAPTER TWO LITERATURE REVIEW

2.1

Introduction

In todays competitive market environment, there is an increasing demand of the talented workforce management. Talent management is one of the most important goals to be pursued by the organizations in terms of their HR objectives. Bargaining power of employees is increased due to organizations need to attract an innovative and creative pool of employees. After attracting the desired workforce the task of retaining is still very important to handle properly. This could be achieved with a systematic analysis of individual need, wants and demands. Organizations need to identify the personality types of their employees in order to motivate them in a best possible manner. It is also required to keep the individual satisfied and committed. As such a culture will promote the potentials of its employees and they will increase their productivity to its maximum. This sense of accomplishment will lead them to stay within the organization for a longer period of time. Thus there is a need to implement proper plans and strategies to embed retention within the culture of the organization (Earle, 2003). The chapter is devised to entail the previously published work on the topic. And ultimately, the purpose is to find out the strategies for creating employee commitment and retaining them within the organization. 2.2 Retention of Employees

2.2.1 Defining Employee Retention Retention of employees has become a very important factor for the overall progress of the organizations. Retention is the commitment of an employee to remain attached with a particular organization in order to do business for an unending period of time (Zineldin, 2000). Definition of Retention stated as the ability to hold onto those employees you want to keep, for longer than your competitors (Johnson, 2000). Retention of employees can also be defined as the customers liking, identification of employees, trust of employees and customers on organization, commitment, and some behavioral intentions of employees (Stauss et al., 2001). This suggests that employees retention is the behavior of employees to be attached with a particular organization. Employers need talented employees in order to enhance the productivity of the organization.

2.2.2

Importance of Employee Retention

The importance of employee retention has increased due to the heavy expanses attached with the hiring of new staff. It is becoming very hard to hire talented employees because of competitive market conditions, so retention of employees has become very critical for the organizations (Eskildesen, 2000). Different types of benefits are associated with the retention of employees in organizations.

Researchers have identified a range of benefits. The success of business depends upon the retention of able employees in organizations Eskildsen and Nussler (2000). There is a relationship between satisfaction of customers and satisfaction of employees. If employees of the organization are satisfied, they will provide quality services to the customers and ultimately customers will also get satisfied. This will lead to the retention of both in the organization. It has been proved in various researches that employees who are satisfied with their jobs work with more dedication and they contribute towards satisfaction of customers as well (Denton, 20000). As talent pool is squeezed due to different factors, retention of skilled employees has moved to the forefront. It is also desirable because of high cost of turnover of trained employees. Analyzing the possibilities to retain employees requires a deep rooted analysis and implementation of retention plans at several levels. It has multi-level effect and implications (Klein and Kozlowski, 2000; Raudenbush and Bryk, 2002; Yammarino and Dansereau, 2004). Retention is one of the HR challenges, need serious attention. Retention lacks a standard set of approaches so every organization try to retain employees in its own way of looking this dimension (American Management Association, 2001). Retention is not concerned with one specific dimension of the HR. Rather, it starts applying different strategies at the time of recruitment for hiring the right person for the right job, then during training and developing activities, retention program align the individual interests with organizational interests to keep them engaged and committed to the organization (Freyermuth, 2004). 2.3 2.3.1 Employee Loyalty Defining of Employee Loyalty

In todays business world organizations rely on their employees performance to a great extent. It is proved that in organizations that operate in technological, financial, and biological companies depend more on their employees. In these segments of market the contribution of employees towards the success of organization does not depend only on their time spent at the organization (Aityan, and Gupta, 2011). The loyalty of employees has relation to the dedication of employees towards interests of the organization. The loyalty of employees with the organizations has not been defined in an appropriate way in the literature (Hart and Thompson, 2007). The loyalty of employees is about the agreement between employers and employees (Power, 2000). Loyalty of employees cannot be achieved until employers are not loyal to their employees. It requires a mutual effort of employers and employees.

The fear of losing jobs without informing the employees is a big contributor towards damaging the loyalty of employees in todays market (Aityan, and Gupta, 2011). 2.3.2 Importance of Employee Loyalty

The companies that have loyal employees are found to survive in todays competitive market more effectively than the companies that lack loyal employees. Keiningham (2009) says that the success of organizations is a function of the performance and loyalty of its workforce. Loyal employees are contributor towards the success of organizations. They are considered as the assets of organization. Loyal employees of organization attract the attention of customers and inculcate loyalty in them as well. In order to capture these benefits of loyal employees, it is important for organizations to retain them. It is important for organizations to identify the loyalty in its employees. The retention of an employee in an organization for a longer time period does not mean that the employee is loyal to that organization. The employee might have not found a better job in another organization so he / she stayed. The loyalty in employees can be enhanced by providing them job security. The engagement of employees in organization has found one of the factors of winning employee loyalty. It contributes towards decreasing employee turnover organizations (Buhler, 2006). In todays market it has become very important for organizations to retain talented employees as they provide long-lasting benefits to the organizations. 2.4 Employee Retention Strategies

Research studies have reported no of strategies, being employed in order to retain employees like training and development rewards and incentives, managing employee and line manager relationships, balancing work and life, autonomy at work, motivation programs and many others. This study has set its scope on the following factors.

2.4.1

Training And Development

Training is an integral part of employee job commitment. Job is the subject matter between the organization and the individual. No doubt, how great a person feel about his organization, till the time he is not satisfied in his job with his job activities he will not be satisfied and committed. So in order to

regulate and assist the employee in his job, training is an ultimate need. Training consists of variety of instructional techniques extracted from behavioral theories so training impact the employee job relationship in a positive way that results into employee job satisfaction in the long run into employee retention (Goldstein, 1989). In order to make the training investment effective, training initiatives should be well planned and designed properly and they also be supported by financial funds. Development is another strategy being used for retaining an employee. Development is very must similar to training but training is provided to deal with daily business activities while development is the preparation for an upcoming businesses activities. Employee development initiatives increase the employee job commitment as employee valued the growth opportunities (Sussman 2006). Thus, training and development of employees is an essential component of the employee job retention. There is need to prioritize these activities in order to pursue the organizational retention goals. A company that wants to strengthen its bond with its employees must invest in the development of their employees (Hsu, Jiang, Klein & Tang, 2003; Steel et al., 2002). It entails in creating opportunities for promotion within the company and also providing opportunities for training and skill development that let employees to improve their employability on the internal and/or external labour market (Butler & Waldrop, 2001). Growth opportunities which were offered by the employers, impact the employees turnover intention negatively. As the research studies reported that the lack of training and promotional opportunities, were the main causes for the high-performers, to leave the company (Allen, Shore & Griffeth, 2003; Steel et al., 2002). Career development is important for both the organization and individual (Hall, 2002). Its a mutual benefit process because career development provides the important outcomes for both parties (Kyriakidou and Ozbilgin, 2004). Organizations need talented employees for maintaining the sustainable competitive advantage and individuals require career opportunities to develop and grow their competencies (Prince, 2005). Continuous training and development programs not only help to bolster employee satisfaction, but also produce tangent benefits for the organization.

2.4.2

Improved Worker And Supervisor Relationship

Supervisors are the human face of an organization. According to Eisenberger and associates (1990), a workers view of the organization is strongly influenced by their relationship with their supervisor.

By having support, workers are less likely to leave an organization and become more engaged by having good relationship and open communication with the supervisor. Supervisors are the link between management and the employees. They are the communicators of the organizational goals and objectives. By harmonizing the competing demands, they support both external and internal work climate. They regulate the peer and other networking relationships within the organization. Thus this is a very important relation for assisting employee in his job activities, as well as to keep him satisfied and committed within the job. If the relationship is positive then employee will most probably retained within the company. If an employee- supervisor relationship is adverse then, employee will continuously look for the other opportunities and will switch to other organization when he would have option. Organizations need to address this relationship properly, as it is being said that the employee leave people not the job (Ontario, 2004). As in todays organization, diverse workforce is being utilized which arises the importance of supervisor and employee relationship for retention. Borstorff & Marker (2007) found that employees want trustful supervisors who know them, understand them and treat them fairly. Abusive supervisors create conflicts in workers attitude for job, life and organization. Employees who feel esteemed will actively take part in organizations goals, exhibit prolific workplace behaviors such as increased in job involvement, reduced absenteeism and have less turnover rates. The means by which support from a supervisor can be revealed is by formal and informal recognition. In organization workforce responds to praise, encouragement and support, no matter the environment is personal or professional (Silbert, 2005). Supervisor discusses employees progress, often outside the formal evaluation process. They help employees to find the right position in the organization, not simply the next rung on the ladder (Freyermuth, 2007). As in todays organization, diverse workforce is being mixed up within the premises of one building so managing the line and HR relation has become very complicated and the retention demands it badly. Borstorff & Marker (2007) found that employees expect their supervisors to be trustworthy, who know them, understand them and treat them fairly. Such terms of understanding and truth and fair views create healthy workforce environment and culture which lead towards retention. Employees who feel esteemed will actively take part in organizations goals, exhibit prolific workplace behaviors such as increased in job involvement, reduced absenteeism and have less turnover rates. The means by which support from a supervisor can be revealed is by formal and informal recognition. In organizations, workforce responds to praise, encouragement and support, no matter the environment is personal or professional (Silbert, 2005). Supervisor discusses employees progress, often outside the formal evaluation process. They help employees to find the right position in the organization, not simply the

next rung on the ladder (Freyermuth, 2007). Quite often, people are not even aware of many of the elements that make up a work environment. It stands to reason that everything around employees has some impact on them and how they do what they do. On the other hand, abusive supervisors create conflicts between worker and the line manger that impact the employee satisfaction and commitment on job negatively. In the context of diversity, favoritism and biased behavior make this relation worse. Employees become de motivated and it also impacts the organizational profits due to decrease in productivity so this issue needs proper attention to treat appropriately, in order to retain the employees (Fuimano 2006). 2.4.3 Rewards

The term reward is discussed frequently in the literature of human resource management. Rewards and incentives are given to the employees in response of their contributions and better performance outcomes as per the organizational policy and the employee interests. Rewards impact the employee satisfaction at work because it fulfills the basic need to be within the organization and motivate to attain the higher performance goals. Earnings is the way by which worker get to know that how much they are gaining by dedicating their time, effort and skills in a job . Attractive remuneration packages are one of the very important factors of retention because it fulfills the financial and material desires. Reward may be financial and non-financial, extrinsic or intrinsic. Financial or intrinsic rewards, includes the cash payments or bounces which extrinsic reward includes recognition. Recognizing an out performer as employee of the month is the extrinsic or intangible reward. As rewards are the appraisal of an individual effort so rewards increases the employee motivation level. Rewards are found to have a direct link with individual performance improvement. Sit means that motivated employees perform better than the de motivated employees. Reward are given so much importance in the context of HRM that they are managed under the separate head named performance management as reward management. Rewards are important not for the current job performance improvement but also for the employee satisfaction at workplace that will lead to employee commitment within the organization. As in the era of high competition organizations follow one another in most of their activities so almost all the organizations manage the reward to stay competitive. Now the purpose is to make employee loyal with the organization with the help of these rewards. Now rewards are also managed according to the employee needs and preferences. Some people valued the non-financial rewards more like recognition, admiration, pride, respect, titles, awards and honor than the financial

rewards like cash bounces, allowance sand rental accommodations. Many researchers demonstrate that there is a great deal of inter-individual difference in understanding the significance of financial rewards for employee retention (Pfeffer, 1998; Woodruffe, 1999). So rewards need proper attention to become the order winning criteria otherwise every organization is providing rewards there is no point of distinction. This is the ability of the management to align the rewards with the individual requirements that make it a competitive tool. It is also very important that the rewards may have a lasting impression on the perception of employee about the organizational policies. A positive perception about the organizational behavior, will leads towards the retention (Silbert, 2005). As, an organizations reward system can affect the performance of the employee and their desire to remain within the organization (Bamberger & Meshoulam, 2000) 2.4.4 Creating Employee Work Life Balance

Previous studies indicate that employees endowed with value and importance for work-life initiatives. Locality is achieved by flexible work schedules, family friendliness, leave and immediacy to their homes (Dubie, 2000). Many researchers tested the impact of work and family benefits on organizational commitment. Work and family life benefits include flexible schedules, childcare assistance, parental leave, childcare information and parental leave. Research showed that there is greater organizational commitment if employees had access to work life policies. Results evidenced that such employees articulated considerably high with their work and less intended to renounce their profession. Workplace flexibility is really demanding in todays world as money alone is not enough; employees are willing to trade a certain amount of money for reduced work hours in their schedules. It is argued by the researchers that reduced work hour options should have the potential of win-win situation for both individuals and organizations, there should be a fit between the schedule the person needs and the actual number of working hours. Distress and fatigue from excessive time on job can lead to decline in performances of the employee and also it affects the safety level. A large amount of time at work is not a good predictor of productivity and it is observed that periods of time away from work can be extremely beneficial to the quality and productivity of a persons work. The employee willingness to opt for reduced hours schedules is not simply a matter of scheduling it involves redesigning work arrangements which leads to change in organization culture and careers, viable reduced-hours career options require simultaneous changes in the areas of compensation, assignments and promotions. So it

is more cost-effective and productive for management to design the work arrangements to fit the human than it is force the human to fit the system (Barnet & Hall, 2001). 2.4.5 Removing Job Stressors

Job stressors or burnouts are also decreases the employee motivation level and its commitment at job. There is a considerably a good number of studies that cited this negative impact of job stressors. Job stressor may be personal or job related. Job related stressors are usually embedded within the characteristics of the job. Most probably work related stressors lead towards employee turnover but personal stressors are also important for the organizations, work-family clashes may also force the employee to switch the organization. The level of support employees receive, the personal attributes they bring to the job and the industry norms all are important to consider. And the way all these components are managed in the workplace may impact the echelon of work-family conflict that may ultimately impact the employee job contentment as well as the organizational commitment. Thus, employee turnover would be the most expected but inevitable end result (Mulvaney et al., 2006). In the context of employee retention these are some suggested and tested measures in different industries. This study sets its scope to seek the implementation and effectiveness of these strategies in the pharmaceutical sector in UK. Employee job retention which is dependent on the employee job satisfaction and the employee job commitment is highly, in need to be addressed. Having satisfied employees is not only an ethical consideration for the organizations, but it is also required for productivity increase, customer service delivery, and the ability of the organization to exist as an economic entity (Kaplan and Norton 1996). If employees understand that they will be given the opportunity for input in a non-judgmental forum, without fear of retribution, they will be more willing to do so. Their satisfaction and confidence in management will be enhanced if they are able to see the managerial actions or feedback provided during the survey process. Employee satisfaction surveys should be taken very seriously and management should act on the results, as employee satisfaction is a direct indicator of employee retention and employee productivity. A well-designed survey may generate actionable information about employee morale, and/or the efficiency and effectiveness of work and organizational processes. Employee surveys can play an important part in improving elements related to enhancing the abilities of an organization to function more effectively in every respect (GuideStar 2006).

2.5 Summary of the Chapter The employees are considered as important assets of the organizations. They are the key players of determining the success of organization in market. It has become important for organizations to retain employees in the organizations for getting better output from them. Retention of employees means to keep the employees within the organization for a continuing period of time. Literature review has proved that employee retention bring a number of benefits for the organization. One of the benefits associated with employee retention is employee loyalty. Loyal employees bring number of benefits for the organizations. They crate satisfaction in the customers to a higher level. It can be said that loyal employees create loyalty in the customers. Retention of employees with in the organization lowers the cost of hiring new employees. Employers can retain their employees by providing chances of further development. Training and development of employees is found to be one of the strategies adopted by the organizations for retaining employees. It has been found that training of employees not only brings benefits for employees but for employers as well. The good relationship of workers and supervisors is one of the factors of retention of employees in organizations. Rewards to the employees produce loyalty in the employees. If flexible working conditions are provided to the employees they prefer to stay in the organization. On the whole the literature review describes the critical analysis of the strategies of employee retention in organizations. Benefits associated with the employee retention are also highlighted in literature review. The relationship of employee retention and employee loyalty is also established. Important points discussed in the literature review are as follows: Employee retention: The commitment of employees to remain attached with a particular organization is called employee retention. In this particular study it is basically dependent variable. Employee Loyalty: Success of organizations is function of employee performance and employee loyalty. Training and Development: Training and development programs create employee satisfaction and also produce benefits for organizations. Supervisor and Worker Relationship: If supervisors trust employees and treat them fairly, it can lead to employee satisfaction. Rewards: Rewards systems of organinsations affect employee performance and employee retention. Employee work life balance: Employee commitment to organizations increases when there is work life balance.

Job Stressor: Most of the times work related stressors lead towards employee turnover.

CHAPTERTHREE METHODOLOGY

3.0

Introduction

The research is conducted to enhance the current boundary of knowledge. Research can be conducted to answer an unanswered question, resolve problems, theorizing a new concept or to extend a current theory. Research is basically of two types. One is scientific research and the other is called social research. Social research is conducted in order to evaluate the social behaviors and social attitudes. The attitudes, behaviors, and beliefs of people in the society are examined through social research (Pan, 2011). This particular research is based on polices of retention of employees which is a social issue, so the research is a social research. Research is conducted by adopting a particular methodology. This chapter covers methods and approaches of research. Data collection tools are also justified in this chapter. 3.1 Research approach

There are two types of research approaches used in the research. One is called inductive research approach and the other one is called deductive research approach. Deductive research approach explains a phenomenon through already existing theories of literature. Data collected through various tools is tested and results are extracted by using deductive research approach. This approach involves testing of hypothesis. The other research approach i.e. inductive research approach involves formation of new theories. Observation and experimentations are done in this approach of research (Saunders et al., 2009). This research is conducted by using both approaches. Deductive approach of research is used to construct the literature review of research paper. Already existing research work regarding employee retention and employee loyalty is investigated by using deductive approach. Inductive research approach is used to find the relationship between employee retention and employee loyalty in GSK. The two approaches support each other and validate the research findings.

3.2

Research Methods

Research methods are of two types. These are qualitative research methods and quantitative research methods. Qualitative research methods make use of words while explaining a phenomenon while

quantitative research methods make use of numeric figures in order to explain a problem. Qualitative research methods are mostly used in order to evaluate the human behaviors and attitudes (Anselm L.Strauss, 1998). Quantitative research methods take data from different sources and operate statistical operations on the data in order to extract results (Trouchim , 2006). This research is conducted by using both methods i.e. qualitative methods and quantitative methods. This type of research methodology is called triangulation research methodology. Both methods are adopted for research because they form the base of research strong. The data of both methods support the findings of each other. The literature review of the research is developed by using qualitative research methodology whereas the data collected for determining relationship between employee retention and employee loyalty of GSK is tested by quantitative research methodology. This research methodology supports the aims and objectives of research. To achieve the objectives of this research triangulation methodology is necessary.

3.3

Data Collection Tools

The research mainly involves two types of data i.e. primary data and secondary data. Primary data is the first hand data. It is collected by the researcher for the first time and does not exist in the earlier records (Saunders et al, 2009). Primary data takes more efforts and time for collection and it is quite handle to collect it. On the other hand secondary data is the processed form of data. It exists in the books, articles, journals, government databases and on internet. Some statistical operations have been performed on secondary data. In this way the reliability of the secondary data becomes less as compared to primary data because of the possible manipulation of previous researchers. Primary data can be collected by various tools. These include surveys, interviews, focus group discussions, observations and experiments. Surveys collect data by using a questionnaire. Questionnaire questions can be open ended or closed. The involvement of researcher in the questionnaire survey is low, so the chances of biasness are less. It takes less cost and effort to collect data by questionnaire survey. Interviews are also used as instrument to collect primary data. Interviewer asks questions form the interviewee. Interviews can be structured or unstructured. The interaction of interviewer with the interviewee can create biasness in the data. Interviews are costly as compared to surveys. Focus group discussions are also used to collect data from respondent. To conduct focus group discussions a mediator is appointed who asks questions forma group of six to twelve people without pressuring them. Focus group discussions charge higher cost. In order to collect data from large population in short time, questionnaire survey is best tool (Struwig and Stead, 2007).

This particular research is conducted with the help of questionnaire survey. The other tools of data collection are avoided in this research because they charge high cost and take more time. By leveraging the benefits of all data collection tools, questionnaire survey tool is adopted. In this research secondary data is collected from books, journals, articles and websites. Most recent data is used from journals in order to make the research reliable and valid in current scenario. 3.3.1 Structure of Questionnaire

A questionnaire consisting of 22 questions is developed. All the questions aimed at finding the answer of the research questions. Questionnaire has been adapted from two studies conducted by Brown (2003) and Work health organization (2004). Main dimensions included in the questionnaire are Employee satisfaction, employee loyalty, Training and development, Rewards, Supervisor- employee relationship, Work life balance, and Work overload. All these dimensions have been discussed in detail in the literature review. All the questions relate to these dimensions. First four questions are related to employee satisfaction. Next three questions are aimed at employee loyalty. Training and development in an organization affects employee commitment to the organization (Sussman 2006). Next three questions are aimed at finding impact of training and development on employee retention. The next four questions are aimed at finding the relationship of rewards and employee retention. It is found by Bamberger & Meshoulam (2000) that employee retention in an organization is affected by reward systems of the organization. Eisenberger (1990) suggests that perception of employee about the organization is affected by his or her relationship with the supervisor. Next four questions are proposed to investigate the effect of supervisor worker relationship on employee retention. Work life balance also affects employee retention in organizations. Remaining questions are aimed at work life balance.

3.4

Sample Size/Sampling

Population of a research comprises of all the individuals on whom research is focused. The population of this research comprises of all employees of GSK London. Usually it is not possible to collect data from all employees of GSK London, so representative part of population is selected. How many employees of GSK London? The representative part of population is called sample. The technique by which sample is selected is called sampling techniques (Struwig and Stead, 2007). There are two types of sampling techniques. One is called probability sampling and the other one is called non probability sampling. Every member of population gets equal chance of being selected in the sample in probability

sampling technique. In non probability sampling equal chance is not given to all the members to be selected in the sample. Cluster sampling is example of probability sampling. Non probability sampling has further types i.e. quota sampling and convenience sampling (Struwig and Stead, 2007). In this particular research a sample of 50 employees is selected by using convenience sampling technique. It is assumed that 50 employees are representative of the whole population. The other two sampling techniques are avoided because of their complexity. 3.5 Time Horizon

There are two time horizons for conducting research. One is longitudinal and the other one is cross sectional time horizon. In longitudinal research data is collected at more than one time. The example of collecting data through longitudinal time horizon is recording temperature at different times in an experiment. Cross sectional research involves data collection only at one time. This research is cross sectional research as the data is collected only at one time. Longitudinal time horizon is avoided because it odes not match to the research aims and objectives.

3.6

Reliability And Validity

This particular research is reliable and valid. This is in relation to questionnaire design. Researcher has taken all measures to produce a reliable and valid piece of work. Consistence of results of research measures its reliability (Charles, 1995). The researcher has adopted a research methodology which is aligned with the research aims and objectives which makes it a reliable and valid piece of work. If research instrument produces similar results again and aging in similar conditions, it is said to be reliable. Researcher has checked reliability of instrument at two different times. The validity of research means that research measures what it intends to measure. The questionnaire is developed consistent with the research aims and objectives which makes it a valid research. The data is not manipulated at all, so the research is reliable and valid piece of work. The reliable resources of data like journals are selected. On the whole research has taken all the measures to produce a valid and reliable research.

3.7

Ethics Of Research

It is very important to follow ethics in research. Researcher has not compromised on ethical issues during the whole phase of completion of research. During the process of conducting research any kind

of physical, emotional or environmental harm should not be caused to any one (Kimmel, 2007). Researcher has taken care of these issues while conducting research. All the participants are given free will to participate in the research. Nobody is pressurized during data collection. It was totally the decision of participants to become participant in the research. It is unethical to collect data from respondents without informing them about objectives of research. In this particular research, researcher has explained objectives and aims of research to the participants. All the participants are explained about the use of their data. It is included in ethics of research to keep the data of participants confidential (Tony and Martin, 2007). Responses of all the employees are kept confidential. During data collection, individuals were not allowed to see the filled questionnaire of others. In this way the confidentiality of data is assured. It is unethical to copy the work of others in research paper. Copying the work of others is called plagiarism. Researcher has taken much care of issue of plagiarism. In the literature review employee retention and employee loyalty are discussed in the light of work of previous researchers. To make the work valid and original, researcher has provided Harvard references in text as well as in bibliography. Overall all ethical issues are considered by the researcher in this research. 3.8 Summary of Chapter

This chapter covers the whole methodology of the research. Research methods and approaches are discussed and justified in the chapter. The research is conducted by taking deductive and inductive approaches. Qualitative and quantitative research methods are adopted for this research. Both kinds of research approaches and research methods support findings of each other. Data collection tools are also described in the chapter. Research is conducted with the help of questionnaire survey. A questionnaire consisting of 22 questions is developed in order to collect data. A sample consisting of 50 employees of GSK is selected with the help of convenience sampling technique. Data is collected only at one time which makes it a cross sectional study. The issues of reliability and validity of research are discussed in this chapter. Researcher has also discussed some ethical issues considered in this research. The research methodology is aligned with the research objectives and aims. Questionnaire: Gender Age Job Male Under 25 Tenure Less than 1 Female 25 to 34 2-3 35 to 44 3-6 45 to 55 7-10 56 or more 10 and more

(Years) Education level Associate's degree

Bachelor's degree

Master's degree

Professional degree

Doctorate degree

Please indicate how much you agree or Strongly Disagree disagree with the following statements by Disagree Slightly placing a check mark in the appropriate Disagree box. 1 My job Instills pride in me for being associated with it 2 One of the few negative consequences of leaving this department would be the scarcity of available alternatives. 3 I owe a great deal to my organization. 4 I do not feel any obligation to remain with my current employer. 5 Would not leave my organization right now because I have a sense of obligation to the people in it. 6 This organization deserves my loyalty 7 I do not feel a strong sense of "belonging" to my department 8 My current occupational position adequately reflects my education and training. 9 Considering all my efforts and achievements, my work prospects are adequate. 10 Considering all my efforts and achievements, my salary / income is adequate. 11 Considering all my efforts and achievements, I receive the respect and prestige I deserve at work. 12 I am treated unfairly at work

Slightly Agree Strongly Neutral agree Agree

13 My job promotion prospects are poor. 14 My supervisor Provides me with assistance in exchange for my efforts 15 I have experienced or I expect to experience an undesirable change in my work situation. 16 I receive the respect I deserve from my superiors 17 I experience adequate support in difficult situations 18 My family or private life comes first, than work. 19 People close to me say I sacrifice too much for my job. 20 I am often pressurized to work overtime. 21 I have many interruptions disturbances in my job. and

22 I have constant time pressure due to a heavy work load.

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