Introduction
This paper provides a review of the article by Call, Nyberg, Ployhart and Weekley (2015) entitled “The Dynamic Nature of Collective Turnover and Unit Performance: The Impact of Time, Quality, and Replacements.” The article uses context-emergent theory to explain the relationship between turnover rate and turnover rate change. This paper will summarize the article, critique it, and discuss how its concepts can be applied in the real world of business.
Summary of the Article
The article by Call et al. (2015) shows that turnover in business, specifically in a large retail chain, has to be discussed in precise terms rather than in general, because context plays a significant role in how the turnover should be viewed. The precise elements that have to be considered are: 1) who is leaving the company and what level of quality did they bring, 2) how evenly or unevenly dispersed is the turnover throughout the company—i.e., are the majority of workers leaving from one department, such as sales or marketing or upper management. Focusing on these elements, the company will be in a better position to assess the cost of turnover and what it means to the company’s human capital resource system.
Relevant Points
The most relevant points of the article include: 1) context-emergent theory can be applied to a company’s assessment of turnover to better understand how aspects of quantity and quality with regard to turnover impact performance within the company; 2) there is a significant difference between turnover rates and turnover rate change; the latter will impact staffing requirements, which will impact forecasting and replacement cycles: if rates are high, staffing requirements are high—but if turnover suddenly drops, the change will impact HR focus on that particular area. In short, it is not just...
References
Call, M. L., Nyberg, A. J., Ployhart, R. E., & Weekley, J. (2015). The dynamic nature of collective turnover and unit performance: the impact of time, quality, and replacements. Academy of Management Journal, 58(4), 1208-1232.
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