[TYPE THE COMPANY NAME]
IOP3706
May/June Exam
Memo | Due 19
May 2025
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, Exam (elaborations)
IOP3706 May/June Exam Memo | Due 19 May
2025 Save 4 minutes reading time
Course
Personnel Psychology: Employee Retention (IOP3706)
Institution
University Of South Africa (Unisa)
Book
Personnel Psychology
IOP3706 May/June Exam Memo | Due 19 May 2025. All questions fully
answered.
SCENARIO/CASE STUDY “Repositioning Talent in a Changing World” Nkomo
Holdings is a large South African organisation in the logistics and freight
industry. Over the past three years, they’ve faced severe skills shortages in
critical positions such as supply chain analytics, fleet management, and HR
data science. Despite efforts to attract talent, high turnover has remained a
problem, particularly among young professionals and mid-level managers. A
recent internal climate survey revealed dissatisfaction with career
development, unfair pay practices, unclear performance expectations, and a
weak employee voice in decision-making. Trade unions have called for
improved collective bargaining structures and more inclusive labour relations
practices. In response, the company has established a task team, including
HR, union representatives, and line managers, to review their training,
compensation, performance management, and career systems in line with
transformation goals. The task team is expected to align their strategy with
the emerging nature of hybrid work and digital transformation. QUESTION 1
(15 Marks) a) Briefly explain psychological contract and critically discuss the
forms of turnover as well as the various factors that influence job, and
occupational embeddedness. (15)
QUESTION 1 (15 Marks)
a) Briefly explain psychological contract and critically discuss the forms of turnover as well
as the various factors that influence job, and occupational embeddedness. (15)
1. Psychological Contract (3 marks)
The psychological contract refers to the unwritten, implicit set of expectations between the
employer and the employee, beyond the formal employment contract. It includes mutual beliefs,
perceptions, and informal obligations regarding job security, career development, recognition,
, work-life balance, and fairness. When these expectations are violated, it can lead to
dissatisfaction, decreased commitment, and turnover.
In the case of Nkomo Holdings, the psychological contract appears to have been breached. The
internal survey reveals dissatisfaction with career development, unclear performance
expectations, and weak employee voice — all aspects typically associated with psychological
contracts.
2. Forms of Turnover (4 marks)
Turnover can be categorised into the following:
Voluntary Turnover: When employees choose to leave the organisation, often due to
dissatisfaction, better opportunities, or lack of career growth. This is common at Nkomo
Holdings among young professionals and mid-level managers.
Involuntary Turnover: When the employer terminates the employee due to performance
issues, downsizing, or restructuring.
Functional Turnover: When poor performers leave the organisation, which may be
beneficial to the company.
Dysfunctional Turnover: When high performers or critical talent leave, leading to skills
shortages or operational challenges — clearly evident at Nkomo Holdings in critical
positions like supply chain analytics and HR data science.
Avoidable vs Unavoidable Turnover: Avoidable turnover stems from organisational
issues (e.g. poor management, low pay), while unavoidable turnover results from
personal circumstances (e.g. relocation, retirement).
3. Job and Occupational Embeddedness (8 marks)
Job Embeddedness refers to the degree to which employees feel connected to their current
organisation. It is influenced by:
Links (connections with colleagues or teams),
Fit (alignment between the job and the employee’s values, goals, and abilities),
Sacrifice (what the employee would give up if they left).
Occupational Embeddedness refers to how deeply an individual is integrated into their career
field rather than a specific job or organisation.
Factors influencing embeddedness:
1. Organisational Culture and Leadership: A lack of inclusive decision-making at
Nkomo has weakened employees' sense of belonging.
IOP3706
May/June Exam
Memo | Due 19
May 2025
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, Exam (elaborations)
IOP3706 May/June Exam Memo | Due 19 May
2025 Save 4 minutes reading time
Course
Personnel Psychology: Employee Retention (IOP3706)
Institution
University Of South Africa (Unisa)
Book
Personnel Psychology
IOP3706 May/June Exam Memo | Due 19 May 2025. All questions fully
answered.
SCENARIO/CASE STUDY “Repositioning Talent in a Changing World” Nkomo
Holdings is a large South African organisation in the logistics and freight
industry. Over the past three years, they’ve faced severe skills shortages in
critical positions such as supply chain analytics, fleet management, and HR
data science. Despite efforts to attract talent, high turnover has remained a
problem, particularly among young professionals and mid-level managers. A
recent internal climate survey revealed dissatisfaction with career
development, unfair pay practices, unclear performance expectations, and a
weak employee voice in decision-making. Trade unions have called for
improved collective bargaining structures and more inclusive labour relations
practices. In response, the company has established a task team, including
HR, union representatives, and line managers, to review their training,
compensation, performance management, and career systems in line with
transformation goals. The task team is expected to align their strategy with
the emerging nature of hybrid work and digital transformation. QUESTION 1
(15 Marks) a) Briefly explain psychological contract and critically discuss the
forms of turnover as well as the various factors that influence job, and
occupational embeddedness. (15)
QUESTION 1 (15 Marks)
a) Briefly explain psychological contract and critically discuss the forms of turnover as well
as the various factors that influence job, and occupational embeddedness. (15)
1. Psychological Contract (3 marks)
The psychological contract refers to the unwritten, implicit set of expectations between the
employer and the employee, beyond the formal employment contract. It includes mutual beliefs,
perceptions, and informal obligations regarding job security, career development, recognition,
, work-life balance, and fairness. When these expectations are violated, it can lead to
dissatisfaction, decreased commitment, and turnover.
In the case of Nkomo Holdings, the psychological contract appears to have been breached. The
internal survey reveals dissatisfaction with career development, unclear performance
expectations, and weak employee voice — all aspects typically associated with psychological
contracts.
2. Forms of Turnover (4 marks)
Turnover can be categorised into the following:
Voluntary Turnover: When employees choose to leave the organisation, often due to
dissatisfaction, better opportunities, or lack of career growth. This is common at Nkomo
Holdings among young professionals and mid-level managers.
Involuntary Turnover: When the employer terminates the employee due to performance
issues, downsizing, or restructuring.
Functional Turnover: When poor performers leave the organisation, which may be
beneficial to the company.
Dysfunctional Turnover: When high performers or critical talent leave, leading to skills
shortages or operational challenges — clearly evident at Nkomo Holdings in critical
positions like supply chain analytics and HR data science.
Avoidable vs Unavoidable Turnover: Avoidable turnover stems from organisational
issues (e.g. poor management, low pay), while unavoidable turnover results from
personal circumstances (e.g. relocation, retirement).
3. Job and Occupational Embeddedness (8 marks)
Job Embeddedness refers to the degree to which employees feel connected to their current
organisation. It is influenced by:
Links (connections with colleagues or teams),
Fit (alignment between the job and the employee’s values, goals, and abilities),
Sacrifice (what the employee would give up if they left).
Occupational Embeddedness refers to how deeply an individual is integrated into their career
field rather than a specific job or organisation.
Factors influencing embeddedness:
1. Organisational Culture and Leadership: A lack of inclusive decision-making at
Nkomo has weakened employees' sense of belonging.
