Dysfunctional Turnover

Figure : 3

The above figure basically suggests different type of turnovers. First important distinction in turnover is between voluntary and involuntary. Voluntary turnover is initiated by the employee; for example, a worker quits to take another job. Involuntary turnover is initiated by the organization; for instance, a company dismisses an employee due to poor

performance or an organizational restructuring. Voluntary and involuntary turnover require markedly different management techniques. This article would majorly discuss about voluntary turnover. Another important distinction is between functional and dysfunctional voluntary turnover. Dysfunctional turnover is harmful to the organization and can take numerous forms, including the exit of high performers and employees with hard-to-replace skills, departures of women or minority group members that erode the diversity of your company's workforce, and turnover rates that lead to high replacement costs. By contrast, functional turnover does not hurt an organization. Examples of this type of turnover include the exit of poor performers or employees whose talents are easy to replace. Some voluntary turnover is avoidable and some is unavoidable.

Avoidable turnover stems from causes that the organization may be able to influence. For example, if employees are leaving because of low job satisfaction, the company could improve the situation by redesigning jobs to offer more challenge or more opportunities for people to develop their skills. Unavoidable turnover stems from causes over which the organization has little or no control. For instance, if employees leave because of health problems or a desire to return to school, there may be little the organization can do to

keep them. The distinction between avoidable and unavoidable turnover is important because it makes little sense for a firm to invest heavily in reducing turnover that arises

from largely unavoidable reasons. However, the line between avoidable and unavoidable turnover can be fuzzy.

Turnover strongly affects both an industry's and an organization's success. At the organization level, high levels of voluntary turnover interrupt the flow of business, damage the bottom line, and affect companies in three major ways