Investigation On Employee Retention Strategy At General Electric

2. Research Background

This research proposal proposes a research of the investigation on employee retention strategy at general electric.

A lot of energy is involved in the employee retention and it also involves efforts, resources and other inputs but the results which come out as a result of it are worth spending all these. The acquisition of skills, talents and knowledge becomes tougher for an organization, as the competition in the market heats up. When every manager of your company comes and repeats the same thing for poor performance, than this becomes a headache and becomes the reason poor performance [Robin Thompson, 2004].

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Most of the companies face the problem with retaining the employees. Recently done survey shows that the employee turnover can cost an organization close to 4- 5 times more than an annual employee salary. Another study conducted by a Business school researched that 80% of employee turnover is comparable and can be analyzed against blunders committed during the recruitment process. This is important for the company to understand that the employee turnover may not necessarily represent a disease but it can be a symptom of the disease [Gregory Smith, 2010].

General Electric Company

General Electric Company operates in five segments: Energy Infrastructure, NBC Universal (NBCU), Technology Infrastructure, Capital Finance and Consumer & Industrial [2]. It is an American multinational conglomerate corporation which was incorporated in the State of New York [1]. The famous business ranking magazine – Forbes had ranked GE as the world’s second biggest company [STEVE LOHR, 2010]. This had been done based on a formula that compared the total profits, sales, market value, and assets of several multinational companies [3]. General Electric employs more than 304,000 employees around the globe.

3. Rationale for the Research Topic

The present research and its investigations are to explore the proposed topic due to my experience in General Electric as a trainee. It is noted that the organization has a very good retention rate of the employees and also the attrition rate of the company is dramatically low when compared to other major corporate and companies around the world. The organization is believed to adopt strategically researched policies and their outcomes are again analyzed to focus and suit in the present context of the times wherein every company only minds to gain profit and the knowledge capital and employee retention is not really focused by most of the companies. At the time of recession when most of the companies were sold out or faced major losses, General electric was the one who still showed profits in the market because of its huge employee resources who believe in the company and supported it in the times of need.

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4. Literature Review

A direct link exists between the trainings provided at organization and employee retention. Employers who provide the ongoing training to their employees make them feel that their employer is interested in doing them a better job. Also that the employer cares about them and makes an investment in their future and their personal development. Positive change can also be triggered by the trainings. Training may not be enough to create or showcase the lasting change without a vital link which will help the employees transfer they learned into their real-life application. That kind of vital link can be a strong coaching program [Rik Villegas, 2006].

For over next 12 months the outlook on the strength of an economy is upbeat, with 73 percent of executives and managers stating that the economy would gain at least some amount of strength. When the business starts moving to the forefront, people issues can become even more important as companies seek more people to tackle that growth. One of the survey respondent also added that the focused, motivated and engaged employees are the key to sustainable growth. Another respondent to the same survey stated that the shortage in the skilled and unskilled labor are and will have major ripple effects on costs and productivity (including customer service) within our markets. The business leaders would need to take steps now to increase employee retention, because of the reason that the competitors may soon be raiding their ranks. In a survey it was also revealed that with a strong job market in the West and aging demographics, it can be a challenge to find qualified applicants and to retain good employees [De Techworld-redactie, 2006].

In most of the organizations, the employee benefit offerings vary little from year to year. Most of eh people think that what worked fine five or 10 years ago suits us well now too. But the fact being that the needs and expectations of workers keep changing over time, and if the benefits available to the employees are not changed over the time, it could be a contributing factor in your turnover rate and in recruiting. One of the big challenges is to adjust a benefit plan to best serve employees and is the difficulty in finding out what they really want. The larger the firm is, more likely is the task is. Most of the companies base their benefit packages on industry standards that can be tracked from industry-wide surveys. Some organizations firms also use internal employee surveys to help track the trends in benefit wants and needs of the employees, and employee satisfaction [Kim McLean, 2006].

5. Research Questions

The main question that generate from this research proposal is the research title itself.

What strategies did General Electric applied to retain their employees and hence retain the core resource of the organization?

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What are the core competencies of employee at General Electric?

What is the distinctive factor which persists in the work force at General Electric?

What policies and retention factor contributing strategies does General Electric follow?

Are these strategies the best one in the industry?

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Can these strategies be made as the industry bench marks?

6. Research Objectives

The crucial objectives of this research are

To analyze the strategies which General Electric applies to engage its employees and get the results from them.

To find out various employee engagement techniques which encourage employees ate General Electric’s work place.

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To report different factors that affects the quality of operations and services at General Electric.

What value does General Electric add to its customers to help them sustain the market competition?

7. Methodology

7.1. Research Design & Design adopted

The research proposal is based on Grounded Theory developed by Glaser and Strauss (1967). In this research proposal, the exploratory methods are used than explanatory approach. According to Strauss, it is a research method in which the theory is developed from a set of data by inductive approach which moves from the specific to the more general (Glaser and Strauss, 1967) .The three important process in grounded theory are data collection, data analysis and formulating the theory. After the data collection, researcher analyses the information which helps to form the theory with the help of experience with the research situation. Research proposal proposes longitudinal research since it requires more time to analyze the impact of recession on the economy. General Electric’s performance should be recorded systematically for future analysis.

7.2. Data Collection methods

7.2. (a) Sampling methods

The employees of General Electric are taken as the population. It can be probability sampling and non probability sampling. In the non probability sampling it is not possible to clearly determine the probability of the selection. In this investigation, the non probability sample is appropriate.

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7.2. (b) Size of the sample

Sample includes 50 employees who are from different departments of the organization and performs different tasks to get the organization achieve its common and corporate goal at the end of the financial year.

7.3. (c) Sampling techniques

Samples are selected by the researcher with a definite purpose. Method of sampling is purposive sampling which allows the choice of interviewees; a non probability sampling. A combination of data collection method of semi structured interview and participant observation will be used as tools in this proposal. Researcher knows something about the samples which helps for further studies by getting the most valuable data. It is suitable to discuss why the researcher has selected the employees form the different departments.

Participant observation

It requires months or years of intensive work because time should be needed to accept the researcher as a natural part of the organization. It is one of the most demanding qualitative data collection methods in which, researcher becomes a participant in the particular organization being observed. Because of the main features of this method such as reliability on first hand information, validity of the information, easy and inexpensive methods, it will be selected as one method (Jorgensen, 1993).Participant observation enables to share their experience by not merely observing what is happening but also feeling it” (Gill and Johnson,1997) . Since the researcher has been working as a trainee in General Electric, the availability and collection of primary data through participant observation is significant. Researcher will be able to observe the activities and performance of the students naturally during the sessions.

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Interview

The Researcher can uncover the feedback in a safer and relaxing environment which enhances the collection of data. A semi structured interview schedule will be used to explore whether the strategic thinking and planning make any difference in employee behavior and their performance. Researcher can create the empathy and intimacy with the employees. Researcher can take the opportunity to talk with the employees periodically.

8. Data Analysis

One of the most important parts of research proposal is data analysis. After the data collection, it should verify the validity of the data which leads to the interpretation of the data. Final step will be the mechanical process which can be done by different dedicated qualitative analysis programs. According to Grounded theory approach, the data collection, data ordering and data analysis are interrelated process. The data analysis involves the generation concepts through coding which represents the operations by which data are broken down, conceptualized, and put back together in new ways. It is the central process by which theories are built from data (Strauss, and Corbin, 1990, p: 57). There are different programs which range from word processing programs to qualitative Data management software which includes SPSS use for this data processing.

9. Resource requirements

Facilities which were provided in the library and the learning support services do contribute an incredible part for obtaining the details for published and electronic copies in Literature review. Subsequent interviews on employees of General Electric will also be conducted by telephone or internet depending on the interviewee’s preference. The interviews which include the employee satisfaction and their perception of the organization and their key strength. These will enhance and improve the organizations growth and performance in the fiscal year. This will also constitute the primary data and the secondary data are gathered from the published documents like text books, reports, journals and websites.

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10. Time Scale Gantt chart (Week commencing 6th Oct 2010)

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Objectives

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Research Proposal

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Research Strategy and Methodology

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Research Strategy and Methodology Drafting

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Access to General Electric

 

 

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11. Research Outcome

The research led to the conclusion that general electric uses a highly strategized and customized employee retention policy, which makes it one of the best organizations to work with. This in turn enhances the employee satisfaction and their productivity which also provide the added quality and values to their work. Thus the strategy helps the organization gain the market share and customer’s confidence by getting the quality work done by the employees.. This had made GE the leaders in the world in most of the industry segments and the similar kind of policies and strategies can be applied by the other organizations as well.

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