Organizational Behavior Critical Thinking Essay Example for Free

Organizational Behavior Critical Thinking EssayI have chosen three theories to address the problem. The first speculation is Schwartzs Value Theory. harmonize to the theory, everyone has each own set of personal values and the attainment of these personal values is crucial. Conflict of values or nonstarter in attaining them index lead to employees turnover. From the article, the senior staffs claimed that the bonuses they received were below average. I infer that some of the staffs personal values were non attained, which in this case whitethornbe power and achievement. Their personal values might also have conflicted with the companys values, which lead to their departure. Herzbergs Motivator-Hygiene Theory is also applicable in addressing this issue. According to the theory, there are some factors those lead to both work satisfaction (motivators) and dissatisfaction (hygiene). The absence of recognition which is one of the motivators leads to no satisfaction and the prese nce of hygiene factors such as poor salary and violation of companys policies such as not paying bonuses that the executives deserved might lead to dissatisfaction.Thispresence of dissatisfaction might be the major reason for the staffs to quit. Lastly, according to The Three-Component Model of Organizational cargo there are three types of commitment that create a binding force, those may keep down the high turnover. They are namely Normative, Continuance and Affective commitment. Affective commitment is mainly influenced by personal characteristics and values and is closely related to the Schwartzs Value Theory. This commitment also takes into consideration work experience, which might support the executives decision to quit. Violation of psychological contract is a factor that may antecedent Normative commitment to be ruptured. UBS has failed to meet the expectation of some of their executive and this can be seen as hygiene factors according to Herzbergs Motivator-Hygiene Theo ry which leads to dissatisfaction. The model, so far, has covered the other two theories.Adding on to that, this model also includes the possibility of external factors that might lead someone to leave a company. In this case, handiness of job alternatives in other companies, which compromise their Continuance commitments, might be another force that throw outd executives to leave their positions in the company. Therefore, I conclude that this model, in comparison with the others, is the most appropriate model to address the problem of high turnover in UBS as it covers more possibilities and gives us a more ever expireing(a) view of why the senior staffs may have left the company. UBS is very sensitive to the performance of the worlds economy as it runs in the field of operation of pecuniary service. Poor global economic performance or recession is a major factor that influences the problem of high turnover faced by UBS. Most of the decisions must be made carefully by the compan y as it involves very high risk level.Through these decisions, UBS has to maintain or tied(p) improve the job satisfaction level of its employee and at the same time, continue to give excellent performance. Wrong decisions might cause UBS to lose its employees even its distinguish executives. In the time of financial crisis, it is more difficult for UBS to maintain both its employees job satisfaction and also its performance. This depends largely on the companys form _or_ system of government and also the decisions made by the company. For instance, in Wall Street Meltdown in 2008 UBS made a US$32 billion loss and its inception value plunged by almost 70% (Gross, 2008). One of the decisions that the company made was to fire 8900 employees worldwide (Ubs lay off, 2008). The increased in the regulationof financial labor such as tax on financial may also affect the performance of UBS negatively. Financial Analysts predicted that this increase in regulation allow reduce the size o f the industry (Adams, 2011) and this leaves UBS with no other option than cutting off the number of its employees. This decision made might negatively impact the rest of the employees as they would feel insecure in their positions.This factor can also be seen as one of the hygiene factors which lead to dissatisfaction and this result in the high turnover. obscure from that, the competitive nature of the industry itself intensifies the challenge faced by UBS. Due to lower bonuses that it paid to its executive in comparison to the rival companies might encourage the executives to switch company. For example, Edward Cook who has worked for UBS for 28 years decided to join Morgan Stanley very recently (Philbin, 2011) and Suneel Kamlani, who has worked for 21 years in UBS, decided to join RBS just last year (Muoz, 2010). This shows that it is definitely a challenge for UBS to elicit higher levels of commitment of its employees and executives. Availability of position and better payment offered by rival companies will foot race the loyalty of the UBSs employees.Hence, the high competition among banks also induces the high turnover in UBS. To reduce turnover, managers should cultivate the companys value in the employees. This will reduce Individual-Organizational value conflict and it can be done through training sharing of the companys vision. Managers also have to respect the psychological contract and should propose more-defined policies to company as it may reduce job dissatisfaction. In time of crisis, company may also maintain the Continuance Commitment of the employees by paying the bonuses by using the companys share. However, all of the solutions I proposed may not be successful as they do not take into account the other external factors and the success also depends on the personal characteristics of the employees.ReferencesShehan, Tom, S. ,. T. (n.d.). How to retain employees a high turnover rate is costly in both direct and indirect costs. . Retrieved f rom http//www.allbusiness.com/management/447495-1.html Gross, D. (2008, July 07). Phil gramms ubs problem. http//www.slate.com/id/2194933/ Ubs lay off job cut may fire 1900 employees. (2008, October 01). Retrieved fromhttp//www.finance-trading-times.com/2008/10/ubs-lay-off-job-cut-may-fire-1900.html Adams, B. (2011, August 30). The big layoff struggling financial giant fires thousands of employees. Retrieved from http//www.theblaze.com/stories/the-big-layoff-struggling-financial-giant-fires-thousands-of-employees/ Philbin, B. (2011, September 14). Street moves morgan stanley hires rbc, ubs financial advisers. Retrieved from http//online.wsj.com/article/BT-CO-20110914-711796.html Muoz, S. S. (2010, April 12). Rbs hires key executive from ubs. Retrieved from http//www.efinancialnews.com/story/2010-04-12/rbs-hires-kamlani-executive-ubs