Motivation Model for Employee Retention: Applicability to HRM Practices in Malaysian SME Sector
In the Vision 2020, Malaysian government aims at achieving a developed nation status by the year 2020. To realize the vision, the country needed the support and motivation from all Malaysians. Hence, human resource management (HRM) plays an important role for the said vision since it is a significant capital in the operation of an organization. For Malaysian entrepreneurial firms, it is crucial to retain their employees in order to achieve their ultimate goal i.e. maximizing profits. Such small, growthoriented firms are considered vulnerable to lose even one key employee because it may aggravate extensive consequences and, at the extreme, may imperil exertions to attain organizational objectives. Employee retention becomes a vital human capital objective for entrepreneurial companies which are seeking to grow and capture market share. Motivation is essential in leading the employees towards achieving organizational goals besides fostering the organizational commitment. Such organizational attachment and motivation has implications for whether an employee will opt for remaining with the organization or not. With HRM, the human resource (HR) model would regard humans as being inspired by an intricate collection of interconnected aspects, such as recognition, interpersonal relation, and desire for meaningful work. HR managers must endeavour to redesign the job to be more varied and decentralized in order to encourage sovereignty among employees. Therefore, motivation model is relevant to be employed in HRM practices for employee retention. This paper is primarily based on literature review. Extensive literature study is used to identify relevant information and references. This paper intends to elucidate one particular issue with regards to Malaysian SMEs which is employee retention and in more specifically, this study will aim to produce a model for employee retention conjoining it with organizational strategies, organizational culture and benefits factors. To attain this aim, the two-factor, or motivation-hygiene theory (Herzberg, 1968) was taken as the basic foundation.
Key words: Motivation-hygiene; Vital human capital; Sovereignity; JEL Codes: C11, J12
Allen, N. J., & Meyer, J. P. (1990). The Measurement and Antecedents of Affective, Continuance and Normative Commitment to the Organisation. Journal of Occupational Psychology, 63(1), 1–18.
Appelbaum, E., Bailey, T., Berg, P. and Kalleberg, A. (2000). Manufacturing Advantage: Why High-Performance Systems Pay Off. Ithaca, NY: ILR Press. In Boxall and Purcell. (2003). Strategy and Human Resource Management. Palgrave Macmillan.
Baker, G. & Maddux, H. (2005). Enhancing Organizational Performance: Facilitating the Critical Transition to a Process View of Management. S.A.M. Advanced Management Journal, 7(4), 40-60.
Burrett, R., Khan, Z. (2004). Small Business Job Quality from Employer and Employer Perspectives. Proc. Of the 50th Annual ICSB Conference: Washington DC, June, pp. 450.
Cardon, M. S. & Stevens, C. E. (2004). Managing Human Resources in Small Organizations: What do We Know?. Human Resource Management Review, 14, 295-323.
Cascio, W. F. (2002). Strategic for Responsible Restructuring. Academy of Management Executive, 16(3), 95-106.
Dalton, M., Ernst, C., Deal, J., Leslie, J. (2002). Success for the New Global Manager: How to Work Across Distance, Countries, and Cultures. San Francisco, Ca Jossey –Bass-Viley Publishers.
Frazee, V. (1996). Why do Employees Feel Free to Steal?. Personnel Journal, 75, 21.
Geeta Batra and Hong Tan.(2003). SME Technical Efficiency And Its Correlates: Cross-National Evidence and Policy Implications” in World Bank’s Economist Forum, Washington D.C., May 2001
Gong, Y., Law, K. S., Chang, S. & Xin, K. R. (2009). Human Resources Management and Firm Performance: The Differential Role of Managerial Affective and Continuance Commitment. Journal of Applied Psychology, 94, 263-275
Hashim, M. K. (2010). A Review of the Definitions of Small and Medium-Sized Enterprises. In M. K. Hashim (Ed.), Fundamental issues in Small and Medium-Sized Enterprises. Sintok, Kedah: Universiti Utara Malaysia Press.
Hersey P, Blanchard K. H, (1993). Management of Organizational Behaviour - Utilizing Human Resources, Sixth Edition, Prentice Hall International.
Herzberg, F. (1968). One More Time: How Do You Motivate Employees?. Harvard Business Review, 46(1), 53–62.
Latham, G.P., Ernst, C.T. (2006). Keys to Motivating Tomorrow’s Workforce. Human Resource Management Journal, 16, 181 –198.
Mabey C, Salaman G, (1995). Strategic Human Resource Management. Blackwell.
Macky, K. and Boxall, P. (2008). High-Involvement Work Processes, Work Intensification and Employee Well-Being: A study of New Zealand Work Experiences. Asia Pacific Journal of Human Resources, 46, 38-55.
Maierhofer, N. I., Kabanoff, B.,&Griffin, M. A. (2002). The Influence of Values in Organizations: Linking Values and Outcomes at Multiple Levels of Analysis. International Review of Industrial and Organizational Psychology, 17, 217–263.
Mayson, S., Barerett, R.(2007). The Science and Practice of HRM in Small Firms. Human Resource Management Review, 16, 447-455.
Mitchell, T. R., Daniels, D. (2003). Motivation. Comprehensive handbook of psychology: Industrial Organizational psychology, Vol.12, pp.225-254. New Yorks Wiley and Sons Inc..
Nishii, L. H., Lepak, D. P. and Schneider, B. (2008). Employee Attributions of the “Why” of HR Practices: Their Effects on Employee Attitudes and Behaviors, and Customer Satisfaction. Personnel Psychology, 61, 03-545.
National SME Development Council (NSDC) (2009).
Retrieve from: http://www.smibusinessdirectory.com.my/smisme-editorial/government-initiatives/505-national-sme-development-council-nsdc.html
Porter, L. W., & Steers, R. M. (1973). Organisational, Work and Personal Factors in Employee Turnover and Absenteeism. Psychological Bulletin, 80(2), 151–176.
Porter L. W, Bigley G. A, Steers R. M, (2003). Motivation and Work Behavior, Seventh Edition. McGraw-Hill.
Qadria Alkandari & Amani Abdullah Hammad. (2009). Employees Retention in Private Sector an Exploratory Study in the State of Kuwait. Open University, Malaysia.
Sethakaset, P., & Santimataneedol, T. (2008). The Application of Human Resource Management in Thai SMEs: A Case Study of Albatross Company Limited. Malardalen University, Bangkok.
SME Corporation (2010, b)
retrieve from: http://www.smecorp.gov.my/v4/node/60?language=ms.
Takeuchi, R., Chen, G. and Lepak, D. P. (2009). Through the Looking Glass of A Social System: Cross-Level Effects of High-Performance Work Systems on Employees’ Attitudes. Personnel Psychology, 62, 1-29.
Tsai P. C. F., Yen Y. F., Huang, L. C., Huang I. C. (2007). A Study on Motivating Employees Learning Commitment in the Post – Downsizing Era: Job Satisfaction Perspective. Journal of World Business, 42(2007), 157-169.
Van-Dijk, D., Kluger, A. N. (2004). Feedback Sign Effect on Motivation: Is it Moderated by Regulatory Focus?. Applied Psychology: An International Review, 53, 113-135.
- There are currently no refbacks.
If you have already registered in Journal A and plan to submit article(s) to Journal B, please click the CATEGORIES, or JOURNALS A-Z on the right side of the "HOME".
We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: email@example.com; firstname.lastname@example.org; email@example.com
Copyright © Canadian Academy of Oriental and Occidental Culture
Address: 758, 77e AV, Laval, Quebec, H7V 4A8, Canada
Telephone: 1-514-558 6138