Motivation Model for Employee Retention: Applicability to HRM Practices in Malay

Abstract

In　the　Vision　2020，　Malaysian　government　aims　at　achieving　a　developed　nation　status　by　the　year　2020. To　realize　the　vision，　the　country　needed　the　support　and　motivation　from　all　Malaysians.　Hence， human　resource　management　（HRM）　plays　an　important　role　for　the　said　vision　since　it　is　a　significant　capital　in　the　operation　of　an　organization.　For　Malaysian　entrepreneurial　firms，　it　is　crucial　to　retain　their　employees　in　order　to　achieve　their　ultimate　goal　i.e.　maximizing　profits.　Such　small，　growth-oriented　firms　are　considered　vulnerable　to　lose　even　one　key　employee　because　it　may　aggravate　extensive　consequences　and，　at　the　extreme，　may　imperil　exertions　to　attain　organizational　objectives.　Employee　retention　becomes　a　vital　human　capital　objective　for　entrepreneurial　companies　which　are　seeking　to　grow　and　capture　market　share.　Motivation　is　essential　in　leading　the　employees　towards　achieving　organizational　goals　besides　fostering　the　organizational　commitment.　Such　organizational　attachment　and　motivation　has　implications　for　whether　an　employee　will　opt　for　remaining　with　the　organization　or　not.　With　HRM，　the　human　resource　（HR）　model　would　regard　humans　as　being　inspired　by　an　intricate　collection　of　interconnected　aspects，　such　as　recognition，　interpersonal　relation，　and　desire　for　meaningful　work. HR　managers　must　endeavour　to　redesign　the　job　to　be　more　varied　and　decentralized　in　order　to　encourage　sovereignty　among　employees.　Therefore，　motivation　model　is　relevant　to　be　employed　in　HRM　practices　for　employee　retention.　This　paper　is　primarily　based　on　literature　review.　Extensive　literature　study　is　used　to　identify　relevant　information　and　references.　This　paper　intends　to　elucidate　one　particular　issue　with　regards　to　Malaysian　SMEs　which　is　employee　retention　and　in　more　specifically，　this　study　will　aim　to　produce　a　model　for　employee　retention　conjoining　it　with　organizational　strategies，　organizational　culture　and　benefits　factors.　To　attain　this　aim，　the　two-factor，　or　motivation-hygiene　theory　（Herzberg，　1968）　was　taken　as　the　basic　foundation.

Key　words：　motivation-hygiene；　vital　human　capital；　sovereignity；　JEL　Codes：　C11，　J12