Proceedings of World Business, Finance and Management Conference

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Proceedings of World Business, Finance and Management Conference
8 - 9 December 2014, Rendezvous Hotel, Auckland, New Zealand, ISBN: 978-1-922069-66-5
Analysing the Impact of HRM Discourses in an Insurance Company:
The Case of GFA Ltd
Darshini Seepersand* and Jyoti Devi Mahadeo*
The study attempts to provide a critical account of the conventional Human Resource Management
literature through the medium of discourse analysis and its impact on employee retention at GFA
Insurance Ltd. This research presents a detailed examination of the relationship and debate
between realistic understandings of HRM and on the other hand discourse-based notions of HRM.
The objective is to provide a basis for a possible debate between these contradictory perspectives.
MacIntyre (1984) pointed out that “the manager is the character of modernity, furnishing society with
cultural and moral ideas”.
The research is carried out by using survey methods to collect
information; with questionnaires and observation being the main research instruments. This was
complemented with in-depth face-to-face interviews with the Senior Management, HR Manager and
selected employees of the company. The findings show that the company is doing well in terms of
employee retention and other main HR practices except for the training component.
1. Introduction
Critical theories aim to unveil and change societal structures, ideologies and power relations that
constitute and shape the organisational phenomena and workplace relations (Adler et al, 2006).
Significant understanding of Human resource management (HRM) emphasizes control and governing
dimensions of administrative activities unlike the more technical approaches to organizing (Peltonen,
2011). Instead of treating worker consent as only a functional response to the individual,
organisational and environmental needs, „Human resource management‟, in turn, is seen in critical
theories as a way of ensuring the commitment of employees to the economic goals of the business
enterprises (Townley, 1994; Legge, 1995). To obtain the best solution in any situation, it is important
to define the problem first. HRM has been and remains highly controversial in organisations. Does
this HR of an organisation really serve as it claims in books or is it just a rhetorical noise?
Empowerment through training, performance related pay, profit sharing ratio and team building are
the tools used by GFA Insurance Ltd, the company under study, to embark its people in the
competitive world. According to the Senior Management, “these incentives have enabled a drop in
staff turnover from 44% in 2001 to 5% in 2009”. Over the last five years the company has spent
nearly MUR 2 million on training activities.
*Ms Darshini Seepersand, Faculty of Law and Management, University of Mauritius
Proceedings of World Business, Finance and Management Conference
8 - 9 December 2014, Rendezvous Hotel, Auckland, New Zealand, ISBN: 978-1-922069-66-5
*Dr Jyoti Devi Mahadeo, Faculty of Law and Management, University of Mauritius, Email:brinda.mahadeo@yahoo.com
(corresponding author)
This research aims at unveiling the determinants of employee retention in particular and the study will
help GFA to manage its Human Resource (HR) more effectively and in the same run reap maximum
benefits from employee retention.
The remaining paper is organised as follows to fulfill the desired aims: the next section undertakes a
review of the literature; and a brief discussion of the company profile. This would be followed by an
overview of the proposed research method. The findings are presented and discussed next. Finally,
the conclusion and limitations are presented.
2. Literature Review
Keenoy (1997) observed the idea that key managerial choice of HR practices is one of adopting
either a „hard HRM‟ or a „soft HRM‟ approach which has become the „dominant conceptual-analytical
interpretive scheme‟ within the HRM field. It is perhaps not surprising that people are unwilling to
abandon such a usage whereby any observer of HRM conferences, lectures or examination
processes will continue to hear constant reference to „soft‟ (caring of labour) and „Hard‟ (exploitative
stance) HRM practices.
Beyond the ‘rhetoric and realities’ cliché of HRM practices
Watson (2004 cited in Legge 1995, p.452) that “there have been important attempts by organisational
and management theorists to use the concept of rhetoric in an neutral manner to analyse the way
social actors (HR managers) use language to persuade other social actors (employees) of the validity
of particular arguments”. In spite of this, many authors in the HRM field have continued to use the
term „rhetoric in its „everyday‟ pejorative sense as a form of language use which has little substance
and is more concerned to misguide and impress its audience through the use of clever linguistic and
presentational tricks than to provide realistic or useful information about the topic addressed‟ (Watson
1995).
The term „rhetoric‟ has become a little more than a cliché and all too often simply comes to mean
„false claims‟ about changes in managerial practice, claims which the researcher on „HRM‟ is able to
debunk by investing the reality‟ of what is „actually going on‟. Rhetorical talk, like all language use, is
in itself action, and plays a part in the construction of realities. But who are the people being criticized
in the type of academic literature which presents empirical research as „evidence for the yawning gap
between the rhetoric and reality of HRM‟ (Sisson, 1997)? Are they the academic creators of the HRM
concept or are they managers practically involved in human resourcing work?
Keenoy (1990) argued that managers are the „main creators‟ of this rhetoric or ideology (of HRM
Practices), aided and abetted by „the confused academics‟ who had thought they were merely
„seeking to impose order and coherence on managerial social practice‟ but were, in effect, providing
something „the primary purpose‟ (original emphasis) of which was the provision of a „legitimatory
managerial ideology to facilitate and strengthening of work and an increase in the commodification of
labour‟. At „the heart of the HRM rhetoric‟, he found, was the conception of „a novel/narrative
approach to manage employees which put emphasis on employee commitment and involvement and
a relatively caring concern for employees while simultaneously integrating HR policy and practice with
Proceedings of World Business, Finance and Management Conference
8 - 9 December 2014, Rendezvous Hotel, Auckland, New Zealand, ISBN: 978-1-922069-66-5
strategic business objectives‟ (Keenoy, 1990). Do HR managers read these „HRM‟ texts anyway?
According to Armstrong (2006), an academically-informed and very experienced HR practitioner, they
do not.
HRM Practices as a Managerial Discourse
„Drawing from the work of Foucault, it is argued that HRM may be best understood as a discourse
and set of HR practices that attempt to reduce the indeterminacy involved in the employment
contract‟, (Townley, 1993). From this perspective HRM taken as the black box of production where
organisational inputs, that is, employees are selected, trained, developed, remunerated to deliver the
required output of labour.
Discourse is treated as a „space‟ where language and action serve to complement each other and are
concerned with how power relations are exercised in discursive activity‟ (Harley and Hardy, 2004).
HR practitioners, starting from the ground that language is constructive rather than reflective of some
underlying organisational reality. This approach enables a close analysis of how actors draw on
discourses to make sense of their real life experiences in organisations, and how they in turn produce
and reproduce the discursively constituted social reality in which they are situated (Grant et al, 1998).
Those discourses frame the ways in which organisational members see the world and their self, and
how the social world becomes „taken-for-granted‟ through dominant discourses. Starting from the
premise that discourse and language are never neutral but exist within and transmit networks of
power (Adler et al, 2006).
Francis and Keegan (2007 cited in Zanoni and Janssens 2003) explained the extent to which orders
of discourse „control linguistic variation‟ in HR talk, and in so doing privilege some interests over
others, and how power relations are played out in HR practitioners‟ talk. Knowing that some
discourses are dominant in a particular order of discourses does not mean that those discourses are
uncontested. Harley and Hardy (2004) argue it is by no mean a totalizing discourse and call attention
to the potential, although difficult to realise, of altering and shaping discourse and the meaning of
particular forms of public practice. Following this line of argument, discourse is treated as „regulated
practice‟ or set of rules (Fairclough, 2003) outlining the way people perceive the world, and also as a
„discursive resource‟ (Watson, 2004; Keenoy 1999) from which people can draw thereby actively
structuring their own realities (Watson, 2004).
Person organisation fit as a managerial discourse
Person-Organisation fit is defined as the “compatibility between people and organisations that occurs
when at least one entity provides what the other needs or they share similar fundamental
characteristics or both” ((Kristof 1997). Alvesson (2000) found that organisations may be thought of
in terms of Weber‟s typification of bureaucratized, mechanistic structures of control, as these were
subsequently erected upon fully rationalized base of divided and deskilled labour. The labour process
base was intensive mechanized, divided labour. It consisted of the previous achievements of
Taylorism in the application of empirical methods to the study, design and „de-skilling/re-skilling‟ of
work (Clegg and Dunkerley, 1980). However, it added to what Aglietta (1979) refers to as “two
complementary principles”: 1) „the integration of different segments of the labour process by a system
of conveyors and handling devices ensuring the movement of the materials to be transformed and
their arrival at the appropriate machine tools‟ and 2) „the fixing of workers to jobs whose positions
were rigorously determined by the configuration of the machine system‟.
Proceedings of World Business, Finance and Management Conference
8 - 9 December 2014, Rendezvous Hotel, Auckland, New Zealand, ISBN: 978-1-922069-66-5
Marx (1844) viewed the transition from the feudal to the industrialized society as alienating workers.
Technology was a tool used by the capitalist to exploit and control the worker. Technology was one of
the elements that removed the worker from the goods produced by their work. The worker, thus, no
longer had a „natural‟ relationship to his/her work, since technology became a mediator between a
worker between a worker and his work. Marx (1844) claims that through work human lose their
„humanness‟ and they become an object to themselves. They become alienated to the social world
that they created. The .product of work become a commodity and because of waged work the worker
himself becomes a commodity. Przeworski (1980) argued that the desire to live well provides a
pressure towards active participation in the corporate system.
3. Company Profile
GFA was incorporated in September 1996 by a group of Professionals having more than a quarter
century of experience in the insurance field. It is located at Marina
Figure 3.4: Organisation Chart
House, in the vicinity of Champ de Mars. GFA has suitably situated branches in Port-Louis, QuatreBornes, Goodlands, Curepipe, Central Flacq, Forest-Side, Rivière des Anguilles and Rivière du
Rempart boosting the will to be close to the clients to offer them a personalised service. GFA is
amongst the leading insurance companies in Mauritius.
4. Methodology
Aims and Hypotheses
The aims of the study have been translated as follows:
 determine employees‟ level of awareness of HR practices
 evaluate the extent to which HRM prevails in reality.
 assess the impact of HR Practices on employee retention.
Proceedings of World Business, Finance and Management Conference
8 - 9 December 2014, Rendezvous Hotel, Auckland, New Zealand, ISBN: 978-1-922069-66-5
Performance Related Pay (PRP)-scheme can be used to encourage workers to exert the right
amount of effort and retention (Lazear, 2004).
Hypothesis 1
 H0: There is no significant relationship between PRP and retention.
 H1: There is significant relationship between PRP and retention.
Meyer and Smith (2000) examined the relationship between HRM practices and organisational
commitment, found that the HRM practices are valuable means to obtain employee commitment, their
effects are not direct. They found that career development, employee evaluation of appraisal
practices, and assessment of the benefits offered by the organisation have an effect on both affective
and normative commitment, while training was found not to contribute to the increase in employee
commitment.
Hypothesis 2
 H0: There is no significant relationship between training and commitment.
 H1: There is significant relationship between training and commitment.
According to Blake and Mouton (1964), the most effective managers are those who realize that
employee career development and retention are directly related to the organisation's overall
effectiveness.
Hypothesis 3
 H0: There is no significant relationship between career development and place to retire.
 H1: There is significant relationship between career development and place to retire.
Interviews and observation were the qualitative methods that were utilised for collecting data for this
study while questionnaires were used to gather data quantitatively. Two questionnaires were used:
one for management and another for employees.
In all 14 likert questions relating to views of HR practices which can be linked to employee retention in
the questionnaire meant for management. In order to understand whether these questions reliably
measure the same latent variable, i.e., HR practices linked to employee retention, a Cronbach‟s alpha
was run. The table below indicates that Cronbach‟s alpha is 0.909 (α=0.7), hence a relatively high
level of internal consistency for these scales pertaining to employee retention.
Table 1: Reliability Test
Cronbach‟s
Alpha
0.909
Cronbach‟s Alpha Based on Standardized
Items
0.905
N of Items
14
Mixed methods approach (Williams, 2007) is an extension of, rather than a replacement for the
quantitative and qualitative approaches to research. The latter two research approaches will continue
to be useful and important. The objective for researchers using the mixed methods approach to
research is to draw from the strengths and to lessen the weaknesses of either quantitative or
qualitative research approaches.
Sampling Plan
The research was undertaken at the Head office of GFA Insurance Ltd at Port-Louis and in 8
branches. The sampling frame was made up of the 64 employees of GFA. Since the population was
surveyed there was no need to sample out. Employees who
Proceedings of World Business, Finance and Management Conference
8 - 9 December 2014, Rendezvous Hotel, Auckland, New Zealand, ISBN: 978-1-922069-66-5
Table 2: Number of Employees per Department
Department
Main Branch
HR Department
Accounting
Claims
Agency
Underwriting
Secretary
Internal Audit
IT
Branches
Port Louis
Goodlands
Central Flacq
Quatre Bornes
Curepipe
Forest Side
Riviere des Anguilles
Riviere du Rempart
Total
Number of Employees
1
9
12
4
10
3
1
1
3
3
3
3
2
3
3
3
64
worked in the Claims, IT, Marketing, Underwriting, Accounts and Administrative departments were all
contacted to fill in the questionnaire. The latter were filled on the spot and collected.
5. Analysis of Findings
Awareness of HRM Practices
HR Officer stated that the „theoretical‟ criteria are subjective since people behaviour is not constant in
an organisation. Also, performance evaluation is not done on a regular interval but as and when
required. There exist also the halo and horn effects while conducting the performance appraisal
system.
Based on Senior Management‟s statement, GFA Insurance Ltd employees are evaluated based on a
performance appraisal system and they are compensated according to their merit. Besides, as per
the company‟s term, employees who have completed a year in full time employment are entitled to an
unsecured loan. Thus these substantiate the literature where examination through performance
appraisal is based on a distribution between a positive and a negative pole. According to Foucault
(1977) normalising judgment is also known as a punitive balance sheet. It thereby becomes possible
to enmesh the individual in a series of calculative norms and standards, and to identify those who do
not live up to the rule of the norm. As such individuals become known in terms of their mark or the
score they achieve in an examination system (e.g Performance appraisal system) which set them
apart. It is therefore mentioned by Foucault in his book Discipline and Punish, “On the basis of these
records, those in control can formulate norms, averages and categories that are in turn a basis for
knowledge. The examination turns the individual into a “case” as an object of care where caring is
always also an opportunity for control”.
Proceedings of World Business, Finance and Management Conference
8 - 9 December 2014, Rendezvous Hotel, Auckland, New Zealand, ISBN: 978-1-922069-66-5
Performance assessment criteria
Table 3: Mean Values of statements relating to views on Performance Assessment
Performance Assessment Criteria
Attendance
Punctuality
Commitment
Quality of Work
Loyalty
Ability to work in Team
Flexibility
Meeting agreed deadlines
Honesty
Integrity
Training other People
Mean
1.75
1.77
2.19
2.06
2.44
2.28
2.89
2.09
1.73
1.81
3.63
Standard Deviation
0.98
1.05
1.27
1.36
1.40
1.25
1.32
1.14
1.09
1.13
1.41
Culture of the organisation
From table 5.9 below GFA‟s management team can be seen as a high power distance society since
the Mean value (2.28) of (I have no objection if my suggestion is not taken into account) is in the
range of Agree. According to Hofstede (2006) cultural dimension that result indicates that
management don‟t expect subordinates to take initiatives at work. Also, the Mean value of 2.03 (long
term commitment) shows that people in the organisation believe in long term relationship with the
organisation. According to Hofstede (2006), in a high power distance organisation people are
committed and honest to their workplace. They have a strong work ethics and believe in training and
development. They have patience toward long term results.
Proceedings of World Business, Finance and Management Conference
8 - 9 December 2014, Rendezvous Hotel, Auckland, New Zealand, ISBN: 978-1-922069-66-5
Table 4: Mean Value of statements relating to the culture of the organisation
Organisational Culture
Mean
I have no objection if my suggestion is not taken into account
I believe in teamwork and team based performance reward
I like challenging and new situation
I believe in long term commitment to the organisation
2.28
1.70
2.42
2.03
Standard
Deviation
1.37
0.95
1.27
1.15
Table 5: I believe in commitment to the organisation * How far do you believe Training is important for
you? Crosstabulation
I believe in long
term commitment
with
the
organisation (%)
Total (%)
Strongly Agree
Agree
Neither Agree nor
Disagree
Disagree
How far do you agree training is important to you? (%)
Extremely
Somewhat
Moderately
Important
Important
Important
65.4
30.8
3.8
71.4
23.8
4.8
60.0
30.0
10.0
Total (%)
66.7
75.0
100.0
100.0
33.3
25.0
0.0
0.0
100.0
100.0
100.0
It can be confirmed from table 5 that Hofstedes‟ argument about employees supporting long term
commitment believe in training holds true at GFA. The reason behind is that 65.4% of respondents
who Strongly Agree and 71.4% who believe in long term commitment agree that training is extremely
important to them.
Individual Identity in HRM
Perception of training
Figure 8 shows that 53.1% indicated that training given to them is extremely important while 21.9%
agreed that it is somewhat important and 25% considered as moderately important. The HR Officer
stated that “the objective of GFA is to have highly effective staff by providing continuous on-the-jobtraining and planned off-site training”. However, from the observation, it was noted that while
performing on-the-job training the trainee was very much confused with the insurance policies and
also from customers‟ pressure. It was also seen that the trainee was constantly been asked for help
from some senior staff members. This shows that there are no formal and systematic training
procedures in place.
The Management of GFA insurance Ltd claimed that by winning the Training Commitment Award
2004 and winning the HR Excellence Commitment Award 2011 shows their dedication to their
personnel. They are continuously empowering staff through training. Over the past five years the
company has spent nearly MUR 2 million on training activities. They organized a number of training
sessions and team building
Proceedings of World Business, Finance and Management Conference
8 - 9 December 2014, Rendezvous Hotel, Auckland, New Zealand, ISBN: 978-1-922069-66-5
events, which they trust have helped the individual employees to better understand the new
challenges and opportunities within the industry and are now better equipped to offer the best
services to all their customers. In January 2012, a group of 12 staff attended a course – Customer
Care - organised by the National Productivity Council.
Impact of HR Practices on Retention
HR Practices is important to retain employees
It can be noted from the pie chart that 35.9 % of respondents strongly agree and 35.9 % agree that
HR Practices lead to employee retention while only 6.3 % strongly disagree. This has been confirmed
from Table 6 that those employees working for 7 and more years agree (34.8%+ 26.1% = 60.9%) that
HR Practices are important determinant of employee retention. According to Senior Management,
over the last five years the company has spent nearly MUR 2 million in training activities. In
November 2010, GFA insurance Ltd gave an increase of MUR 500 to all the staff. The employees
were evaluated based on a performance appraisal system and they were compensated according to
their merit. In conformity to the policy of profit sharing of the company, a bonus of MUR 500 was
offered for all the personnel in June 2010 higher than that proposed by the National Pay Council
which was MUR 200. Therefore it is very true as mentioned in the literature by (Townley, 1994;
Legge, 1995) that HRM practices in critical theories as a way of ensuring the commitment of
employees to the economic goals of the business enterprises instead of treating worker consent as a
mere functional response to the individual, organisational and environmental needs.
Proceedings of World Business, Finance and Management Conference
8 - 9 December 2014, Rendezvous Hotel, Auckland, New Zealand, ISBN: 978-1-922069-66-5
Table 6: HR Practices are directly related to employee retention*Years of Service at GFA
Crosstabulation
Years of
Service at
GFA (%)
Total (%)
Less than 1
year
Between 1
and 3
Between 3
and 5
Between 5
and 7
Above 7
years
HR Practices are directly related to employee retention (%)
Strongly
Agree
Neither
Disagree
Agree
Agree nor
Disagree
8.7
0.0
0.0
33.3
Total (%)
Strongly
Disagree
25.0
6.3
8.7
39.1
9.1
33.3
0.0
20.3
21.7
21.7
45.5
0.0
50.0
26.6
26.1
13.0
27.3
33.3
0.0
20.3
34.8
26.1
18.2
0.0
25.0
26.6
100.0
100.0
100.0
100.0
100.0
100.0
Hypothesis testing
Since the sample is 64, which is rather small in size, Shapiro-Wilk test was used. From the table
below, it is noted that p < 0.05, thus, alternative hypothesis was accepted and it is concluded that the
data do not follow a normal distribution. Hence, Spearman‟s rank correlation coefficient, a nonparametric measure, was used to determine the strengths and direction of association that can exist
between two variables, that is, determining existence of relationship.
Proceedings of World Business, Finance and Management Conference
8 - 9 December 2014, Rendezvous Hotel, Auckland, New Zealand, ISBN: 978-1-922069-66-5
Table 7: Tests of Normality
HR
Practices
are
directly
related
to
employee
retention
PRP as HR
Practice
to
retain
employees
Training as HR
Practice
to
retain
employees
I
feel more
committed after
training
programs
Career
Development
as HR Practice
to
retain
employees
Employees‟
Perception
of
Organisation as
a place to retire
Kolmogorov-Smirnova
Statistic
df
.241
64
Sig.
.000
Statistic
.827
.281
64
.000
.768
64
.000
.284
64
.000
.794
64
.000
.221
64
.000
.840
64
.000
.183
64
.000
.900
64
.000
.247
64
.000
.867
64
.000
Shapiro-Wilk
df
64
Sig.
.000
a Lilifors Significance Correction
Hypothesis 1
Ho: There is no relationship between PRP and retention.
H1: There is a relationship between PRP and retention.
Table 8 shows that there is a moderate positive correlation between PRP and employee retention (rs
= +0.571, p < 0.01). So, H1 is accepted, therefore in line with the (Lazear, 2004) where he mentioned
PRP-scheme can be used to induce workers to exert the right amount of effort and retention. In line
with the literature review, the result in table 5.18 can be taken as the „making out‟ game separating
the worker‟s interests and concealed the fact that management was obtaining productivity with only
slight increases in wage rate. The act of playing the game created consent for its rules while providing
a challenging distraction to the general tedious and repetitive labour work (Burawoy, 1979).
Table 8: Correlation between PRP and Retention
Spearman‟s Rho
**
HR Practices directly
related to employee
retention
PRP as HR Practice to
retain employees
Correlation Coefficient
Sig. (2 tailed)
N
Correlation Coefficient
Sig. (2 tailed)
N
HR Practices directly
related to employee
retention
1
64
571**
64
Correlation is significant at the 0.01level (2-tailed)
Hypothesis 2
Ho: There is no relationship between training and commitment.
H1: There is a relationship between training and commitment.
PRP as HR Practice to
retain employees
.571**
0.000
64
0.000
64
Proceedings of World Business, Finance and Management Conference
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Table 9: Correlation between Training and Commitment
Spearman‟s rho
Training as HR Practice
to retain employees
I feel more committed
after training programs
Correlation Coefficient
Sig. (2-tailed)
N
Correlation Coefficient
Sig. (2-tailed)
N
Training as HR Practice
to retain employees
1
64
.461**
0.000
64
I feel more committed
after training programs
.461**
0.000
64
1
64
Table 9 shows that there is a moderate positive correlation between training and commitment (rs =
+0.461, p<0.01). So, H1 is accepted, therefore contradicting the research of Meyer and Smith (2000),
where they found that training was found not to contribute to the increase in employee commitment.
According to Storey and Sisson (1993) training is a sign of the employer‟s commitment to staff which
is being adhered by GFA Insurance Ltd. Therefore, it can truly be said that employees may be
considered in this case as an object of knowledge through training and a subject of control.
Hypothesis 3
Ho: There is no relationship between career development and place to retire.
H1: There is a relationship between career development and place to retire.
Table 10: Correlation between Career Development and a place to retire
Spearman‟s rho
Career Development as
HR Practice to retain
employees
Employees‟ Perception
of the Organisation as a
place to retire
Correlation Coefficient
Sig. (2-tailed)
N
Correlation Coefficient
Sig. (2-tailed)
N
Career Development as
HR Practice to retain
employees
1
64
.568**
0.000
64
Employees‟ Perception
of the Organisation as a
place to retire
.568**
0.000
64
1
64
Table 10 shows that there is a moderate positive correlation between career development and
viewing organisation as a place to retire (rs = +0.568, p<0.01). So, H1 is accepted and this agrees
with Blake and Mouton (1964), where they stated that the most effective managers are those who
realize that employee career development and retention are directly related to the organisation's
overall effectiveness.
5. Conclusions
The main findings of the study can be summarized as follows: firstly it was revealed that there is a
slight positive correlation between PRP and retention rate of employees at GFA which is in line with
theory. Secondly, the positive relationship between training and commitment clearly demonstrates
the commitment of GFA towards its employees as emphasized by the study of Storey and Sisson
(1993). On the other hand, it contradicts the findings of Meyer and Smith (2000) which implied that
training did not add to employee commitment to the company. Thirdly, the relationship between
career development and the perception of the organization as a place to retire was also positive in the
case of GFA. This is in line with the findings of the investigation of Blake and Mouton (1964) whereby
they stated that the best managers are those who are able recognize the fact that an employee‟s
career development and retention are positively related to the general healthiness of the organization.
Proceedings of World Business, Finance and Management Conference
8 - 9 December 2014, Rendezvous Hotel, Auckland, New Zealand, ISBN: 978-1-922069-66-5
It can thus be concluded that capitalism is still present and is gaining in strength. Workers sell their
labour power when they accept compensation in return for whatever work they do in a given period of
time. In return for selling their power they receive money which allows them to survive. In this light, as
Rousseau (1712-1778) highlighted “Man is born free and everywhere he is in chains”. The idea
behind this is that men were naturally free, but had to be educated to live in society. This required a
naturally liberty and a “national will” which could be directed to improvement of the society.
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