A theoretical assessment of dismissal rates and unit performance, with empirical evidence.

Abstract

Unit-level dismissal rates have rarely been studied, but utility analysis suggests that increasing dismissal rates can improve performance by increasing the contribution of a unit's workers. This proposition comports with other theory around dismissals but contradicts substantial empirical evidence. We extend the staffing utility framework, taking a multilevel perspective and attending to both within-and between-unit effects of dismissal rate practices. We test our theory in monthly observations from 1,047 retail locations over almost 3 years. Our results explain how between-unit associations between workforce contribution and unit performance can mask the within-unit benefit of increasing dismissal rates. This insight reconciles theory with prior evidence, although some researchers have interpreted them to be at odds. A better understanding of the complex causes and consequences of dismissal rates has the potential to open new avenues of research and inform practice in ways that promote unit effectiveness.

Beyond choosing to leave: The interactive effects of on- and off-the-job embeddedness on involuntary turnover.

“…Involuntary turnover can undermine overall organizational performance (McElroy et al, 2001) because it can be demoralizing to employees (Dwomoh et al, 2013) and negatively influence customer perceptions (Shepherd et al, 2020). However, it can also be functional by eliminating poor performers, making way for new talent (Maltarich et al, 2020; Trevor & Piyanontalee, 2020).…”

Employee Turnover in the Fast Food Restaurants: Investigating the Role of Human Resource Management Practices

“…Involuntary TO is initiated by the employer and regularly incorporates low employee performance and consequently the organizational performance may be better after the dismissal (Sawaneh & Kamara, 2019). High proportion of involuntary TO indicates that the organizations had a problem with workforce quality (Maltarich, Reilly, & DeRose, 2019; International Journal of Human Resource Studies ISSN 2162-3058 2019, Vol. 9, No.…”

“…Voluntary TO that is initiated by an employee, demonstrates a misfortune of human capital that the organization would surpass to avoid, since the workers that the organization most frequently would have liked to retain or at least not expel (Maltarich et al, 2019). Within the field of research that has been proceeded on TO, it has been deemed more imperative to search at why individuals decide to leave the organizations voluntarily (Hur & Achen, 2013).…”

The Directional Nature of Organizational Relationships and Their Effect on Individual Performance and Turnover

“…A simultaneous decline in both directional relationships is not usual and is generally associated with some major issue at work. Therefore, a premature voluntary departure of employees is rare (Maltarich et al, 2020; McEvoy & Casico, 1987) and a result of factors that exclude work-based relationships, such as better external opportunities and spouses moving to another city (e.g., Maltarich et al, 2020).…”