8ACkGkCUND

LrnesL and ?oung ls a global professlonal servlces buslness neLwork wlLh over one hundred and forLy
(140) branches worldwlde 1hey are ln Lhe league of accounLancy flrms ln Lhe world le llke uelolLLe
kMC and rlce WaLerhouse Coopers LrnsL ?oung ls a global leader ln assurance Lax LransacLlon
and advlsory servlces Worldwlde Lhey have abouL 133000 people unlLed by Lhelr shared values and an
unwaverlng commlLmenL Lo quallLy 1hey make a dlfference by helplng Lhelr people Lhelr cllenLs and
Lhe wlder communlLles achleve Lhelr poLenLlal 1helr headquarLers ls ln London unlLed klngdom
1helr Mlsslon SLaLemenL AL LrnsL ?oung we supporL you ln achlevlng your unlque poLenLlal wherever
you are ln Lhe world boLh personally and professlonally We glve you sLreLchlng and rewardlng
experlences LhaL keep you moLlvaLed worklng ln an aLmosphere of lnLegrlLy and Leamlng wlLh some of
Lhe worlds mosL successful companles And whlle we encourage you Lo Lake personal responslblllLy for
your career we supporL you ln your professlonal developmenL ln every way we can ?ou en[oy Lhe
flexlblllLy Lo devoLe Llme Lo whaL maLLers Lo you ln your buslness and personal llfe AL LrnsL ?oung
we know lLs your polnL of vlew energy and enLhuslasm LhaL make Lhe dlfference"
1helr core values are
eople who demonsLraLe lnLegrlLy respecL and Leamlng
eople wlLh energy enLhuslasm and Lhe courage Lo lead
eople who bulld relaLlonshlps based on dolng Lhe rlghL Lhlng
1he name LrnesL and ?oung ls/was a derlvaLlve name from Lhe names of Lhe merglng flrms ArLhur
?oung Co and LrnesL Whlnney
ArLhur ?oung was born ln Clasgow ScoLland Pe graduaLed ln law buL became lnLeresLed ln banklng
and lnvesLmenL ln 1890 he moved Lo Lhe uS Lo pursue hls career ln accounLlng ln 1906 he formed an
accounLlng flrm ArLhur ?oung Company wlLh hls broLher SLanley ln 1924 Lhe flrm allled wlLh
promlnenL 8rlLlsh flrms ?oung wlLh 8roads aLerson Co
Alwln Charles LrnsL was born ln Cleveland uSA AfLer leavlng school he worked as a bookkeeper 1hen
ln 1903 he and hls broLher 1heodore sLarLed LrnsL LrnsL a small publlc accounLlng flrm LaLer ln 1979
Lhls led Lo Lhe formaLlon of AngloAmerlcan LrnsL Whlnney creaLlng Lhe fourLh largesL accounLancy
flrm ln Lhe world ln As early as 1924 Lhese Amerlcan flrms allled wlLh promlnenL 8rlLlsh flrms ?oung
wlLh 8roads aLerson Co and LrnsL wlLh Whlnney SmlLh Whlnney
8oLh men undersLood Lhe lmporLance of Lhelr people ln 1920 LrnsL LrnsL's operaLlng phllosophy
sLaLed 1he success of LrnsL LrnsL depends wholly upon Lhe characLer ablllLy and lndusLry of Lhe men
and women who make up Lhe organlzaLlon" ArLhur ?oung Co supporLed Lhe developmenL of
professlonals ln Lhe 1920s he orlglnaLed a sLaff school and ln Lhe 1930s Lhe flrm was Lhe flrsL Lo recrulL
from unlverslLy campuses
Alwln Charles LrnsL and ArLhur ?oung never meL ln llfe buL dled wlLhln days of each oLher ln 1948
Powever Lhelr phllosophles llved on and ln 1989 were broughL LogeLher when Lhe flrms Lhey sLarLed
comblned Lo creaLe LrnsL ?oung 1he new organlzaLlon qulckly poslLloned lLself on Lhe leadlng edge of
rapld globallzaLlon new buslness Lechnologles and conLlnuous buslness change
LrnsL and ?oung can be sald Lo be a Lyplcal or sLandard flrm LhaL quallfles Lo glve advlce on buslness 1he
flrm's pollcy on Lralnlng and developmenL of sLaff whlch can be sald Lo be Lhe vlslon of ArLhur ?oung
serves as a paLLern for all organlzaLlons LhaL wanL Lo reduce labor Lurnover Lo repllcaLe J#
pass|onat about hp|ng ou pop to ach| th| potnt|a Jhn ou pop ach| th| bst
w can hp ou c|nts ach| th| bst too# (souc Lnst and oung Jbs|t%
1hey recognlze Lhe value of lnvesLlng ln focused and rapld Lechnlcal and personal developmenL drlven
by Lhe buslness needs developmenL LhaL conLlnues LhroughouL Lhe employee's career so LhaL he/she
can bulld on hls/her sLrengLhs Lo fulflll Lhelr poLenLlal ln Lhe flrm and lncrease Lhelr value ln Lhe markeL
place
AL LrnsL ?oung learnlng ls also abouL 'onLhe[ob' developmenL Lhrough your dayLoday work
experlences 1hls way you can apply whaL you learn and embed your developmenL qulckly 1o supporL
Lhls Lhe flrm provldes access Lo pracLlcal experlence as well as classroom Lheory lncludlng access Lo
quallLy secondmenLs wlLh cllenLs or lnLernally boLh ln Lhe uk or overseas 1hls ls ln addlLlon Lo
developmenLal coachlng menLorlng opporLunlLles and work shadowlng
1helr employee's welfare ls also of paramounL lnLeresL Lo Lhem 1hls ls evldenced by Lhe maLernlLy and
paLernlLy 1he flrm has recenLly revlsed lLs maLernlLy package and provldes a range of supporL boLh
flnanclal and non flnanclal Lo expecLanL and new parenLs 1hls lncludes
O lncreased maLernlLy pay durlng maLernlLy leave up Lo 39 weeks pald leave
O rovlslon of chlldcare vouchers for 12 monLhs on reLurn from maLernlLy leave
O uevelopmenL of a parenL neLwork
O romoLlon of supporL from counsellng managers
O ngolng promoLlon of flexlble worklng
O 1he opLlon Lo purchase chlldcare vouchers whlle maklng Lax and nl savlngs
O ald paLernlLy leave
WlLh All Lhese packages avallable for sLaff lL ls obvlous why Lhey have hlgh labor reLenLlon raLe and low
labor Lurnover
1o furLher boosL Lhelr flrm's repuLaLlon on how well Lo caLer for and reLaln employees Lhe reward
sysLem by way of pay and allowances ls based on many facLors maklng lL appreclable for employees Lo
en[oy worklng wlLh Lhem 8elow are some speclflc examples of reward packages of Lhe flrm for
employees
O MarkeL compeLlLlve base pay for our people
O Plgher levels of pay ln advance of Lhe markeL Lo Lhose who excel and conLrlbuLe Lhe mosL
O A compeLlLlve package of flexlble employmenL beneflLs LhaL can be Lallored Lo lndlvlduals needs
or clrcumsLances
O ecognlLlon of excepLlonal achlevemenL by Leams or lndlvlduals
O Salary progresslon and promoLlon Lo reward conLrlbuLlon
O A small number of markeL drlven bonus schemes deslgned Lo malnLaln Lhe flrm's place ln a
parLlcular pay markeL where sLrucLurally base pay alone would noL enable us Lo recrulL or reLaln
effecLlvely
O AcLlon Lo ensure equal pay beLween men and women lncludlng a regular equal pay audlL
O CompeLlLlve flexlble penslon arrangemenLs
O LxLenslve flexlble worklng programs and lnformal arrangemenLs Lo promoLe flexlblllLy aL work
O Plgh quallLy learnlng and developmenL opporLunlLles (lncludlng secondmenLs and leadershlp
programs) Lo enable our sLaff Lo fulflll Lhelr poLenLlal rapldly We have been awarded Lhe
lnvesLors ln eople SLandard ln recognlLlon of our good pracLlce for Lralnlng and developmenL of
our people Lo achleve buslness goals
O A culLure and worklng envlronmenL LhaL engages our people

LrnsL and ?oung can really be referred Lo as an exemplary modern flrm whose labor welfare ls a prlorlLy
and LhaL can glve a falr assessmenL of oLher flrms as Lo how Lhelr managemenL sLyle can affecL Lhe
Lurnover of labour ln Lhelr flrms

N1kCDUC1CN
Labour Lurnover has hlsLorlcally been a concern for managers because lL dlsrupLs producLlon schedules
and ls cosLly as new workers wlLh approprlaLe sklll seLs musL be recrulLed Lralned and broughL up Lo
speed 1hls can be especlally problemaLlc when skllled workers leave parLlcularly when Lhls occurs
durlng perlods of helghLened compeLlLlon and LlghL labour markeLs noL surprlslngly Lhere ls a rlch body
of research on Lurnover whlch has recenLly moved beyond [ob (dls)saLlsfacLlon Lo examlne sLrucLural
facLors (Lype of [ob degree of auLonomy eLc) labour markeL condlLlons parLlcularly Lhe unemploymenL
raLe and Lhe lnLeracLlve effecL beLween work and nonwork (parLlcularly famlly) acLlvlLles (MaerLz and
Camplon 1998 Creenhaus eL al 1997 Pom and klnlckl 2001 !arvls 1999 and Schwab 1991)
LffecLlve ManagemenL has always been Lhe key lngredlenL ln Lhe success sLory of mosL organlzaLlon A
manager who falls Lo manage uslng besL pracLlces would surely run Lhe organlzaLlon lnLo Lhe dlLch 1he
besL pracLlces belng refer Lo here are approprlaLe managemenL sLyles 1hey are characLerlsLlc ways of
maklng declslons and relaLlng Lo subordlnaLes 1hls ldea was furLher developed by oberL 1annenbaum
and Warren P SchmldL (1938 1973) who argued LhaL Lhe sLyle of leadershlp ls dependenL upon Lhe
prevalllng clrcumsLances Lherefore leaders should exerclse a range of managemenL sLyles and should
deploy Lhem as approprlaLe 1he manner ln whlch an organlzaLlon ls managed Lo a large exLend affecL
Lhe raLe whlch employees leave Lhe organlzaLlon Whlle Lhe number of sLudles of Lurnover LhaL focus
upon lndlvldual aLLrlbuLes conLlnues Lo grow less aLLenLlon ls pald Lo Lhe lssue of managemenL sLyles
1hls ls Lhe bane of LrnsL and ?oung Company 1he company ls faclng an emlnenL labour Lurnover and lL
ls dolng all LhaL lL could Lo curb lL

MANAGLMLN1 S1LLS 1nA1 AIILC1 LA8CUk 1UkNCVLk
lL ls essenLlal for every manager Lo be acqualnLed wlLh varlous managemenL sLyles ln order Lo run an
organlzaLlon smooLhly Lvery buslness organlzaLlon has lLs own managemenL sLyle ln our own oplnlon
each managemenL sLyle has lLs own effecLs on labour Lurnover 1he followlng managemenL sLyles affecL
labour Lurnover
1he AuLocraLlc sLyle means LhaL Lhe manager makes declslons unllaLerally and wlLhouL much regard for
subordlnaLes As a resulL declslons wlll reflecL Lhe oplnlons and personallLy of Lhe manager 1he
subordlnaLes become overly dependenL upon Lhe leaders and more supervlslon ls needed MosL
employees do noL llke Lhls klnd of slLuaLlon 1hey feel LhaL Lhey are belng neglecLed and sldellned as far
as declslon maklng ls concerned ln Lhe case under sLudy Lhe workers menLloned LhaL Lhelr skllls were
noL belng used When Lhls happens employees feel dlsconLenL and would always llke Lo move Lo where
Lhelr lnpuLs are Laken lnLo conslderaLlon Pence labour Lurnover


Closely relaLed Lo Lhe AuLocraLlc sLyle ls Lhe aLernallsLlc sLyle A more aLernallsLlc form ls also
essenLlally dlcLaLorlal however declslons Lake lnLo accounL Lhe besL lnLeresLs of Lhe employees as well
as Lhe buslness CommunlcaLlon ls agaln generally downward buL feedback Lo Lhe managemenL ls
encouraged Lo malnLaln morale n Lhe oLher hand for an auLocraLlc managemenL sLyle Lhe lack of
worker moLlvaLlon can be Lyplcal lf no loyal connecLlon ls esLabllshed beLween Lhe manager and Lhe
people who are managed lL can also lead managemenL lnLo Lhe arena of bllnd loyalLy whlch makes lL
dlfflculL for Lhem Lo undersLand Lhe vlews of oLher employees lL shares dlsadvanLages wlLh an
auLocraLlc sLyle such as employees becomlng dependenL on Lhe leader 1hls managemenL sLyle would
deflnlLely send away employees who are senslLlve Lo moLlvaLlonal needs and verLlcal way of
communlcaLlon Slnce Lhey would llke Lo be heard and be Laken serlous Lhe move Lo companles LhaL
would serve Lhelr needs
AnoLher managemenL sLyle LhaL can lead Lo labour Lurnover ls Lhe Lalssez falre ln Lhls leadershlp sLyle
Lhe leaders role ls perlpheral and sLaffs manage Lhelr own areas of Lhe buslness Lhe leader Lherefore
evades Lhe duLles of managemenL and uncoordlnaLed delegaLlon occurs 1he communlcaLlon ln Lhls
sLyle ls horlzonLal meanlng LhaL lL ls equal ln boLh dlrecLlons however very llLLle communlcaLlon occurs
ln comparlson wlLh oLher sLyles 1he sLyle brlngs ouL Lhe besL ln hlghly professlonal and creaLlve groups
of employees however ln many cases lL ls noL dellberaLe and ls slmply a resulL of poor managemenL
1hls leads Lo a lack of sLaff focus and sense of dlrecLlon Managers Lend Lo LoleraLe workers who under
perform whlch ln Lurn leads Lo much dlssaLlsfacLlon among Lhelr peers When Lhls happens many Lop
workers respond by leavlng
lnally nearly onehalf cenLury ago 8urns and SLalker noLed LhaL mechanlsLlc organlzaLlons are ofLen
approprlaLe ln sLable envlronmenLs and for rouLlne Lasks and Lechnologles ln some ways slmllar Lo
bureaucraLlc sLrucLures mechanlsLlc organlzaLlons have clear welldeflned cenLrallzed verLlcal
hlerarchles of command auLhorlLy and conLrol Lfflclency and predlcLablllLy are emphaslzed Lhrough
speclallzaLlon sLandardlzaLlon and formallzaLlon 1hls resulLs ln rlgldly deflned [obs Lechnologles and
processes 1he Lerm mechanlsLlc suggesLs LhaL organlzaLlonal sLrucLures processes and roles are llke a
machlne ln whlch each parL of Lhe organlzaLlon does whaL lL ls deslgned Lo do buL llLLle else
AL leasL Lwo crlLlclsms are generally made abouL mechanlsLlc organlzaLlons lrsL whlle focuslng on Lask
concerns such as efflclency and sLandardlzaLlon mechanlsLlc organlzaLlons Lend Lo lgnore human needs
and dynamlcs Second creaLlvlLy and Lhus lnnovaLlon are resLrlcLed by Lhe rlgldlLy of sLandardlzed and
formallzaLlon Slnce rapldly changlng envlronmenLs requlre more flexlblllLy hlghly mechanlzed
organlzaLlons operaLlng ln rapldly changlng envlronmenLs run Lhe rlsk of becomlng obsoleLe slnce Lhe
conLlnue Lo operaLe uslng hlsLorlcal meLhods 1here ls no any LwenLy flrsL cenLury worker who would
llke Lo work ln Lhls klnd of envlronmenL 1hey would prefer an organlzaLlon whlch ls conslderaLe of
human needs and dynamlcs
JnA1 MANAGLkS CAN DC 1C AVCD LA8CUk 1UkNCVLk
ln order Lo keep Lurnover low lL appears LhaL managers musL adopL managemenL sLyles LhaL would
lnclude employees ln Lhe day Lo day runnlng of Lhe organlzaLlon We belleve LhaL when managemenL
adopLs Lhe followlng managemenL sLyles Lhey would be able Lo keep labour Lurnover Lo lLs baresL
mlnlmum
ne of Lhese sLyles ls Lhe uemocraLlc managemenL sLyle lL ls Lhe sLyle grafLed from Lhe governmenL
sysLem of Lhe unlLed SLaLes 1hls managemenL sLyle works well because normally Lhere wlll be several
leaders of Lhe same buslness LhaL are lendlng Lhelr ears Lo Lhe employees ln order Lo provlde good Lwo
way communlcaLlon 1he uemocraLlc managemenL sLyle ls successful because Lhey allow employees
below Lhem Lo make declslons on Lhelr own much llke Lhe dlfferenL SLaLes LhaL make up Lhe uS as well
as Lhelr clLles are able Lo make Lhelr own laws 1hls Lype of managemenL sLyle ls mosLly found ln
buslnesses where efflclency ls a [olnL operaLlon WlLh Lhls sLyle employees feel saLlsfled slnce Lhelr
lnpuLs are Laken lnLo conslderaLlon when declslons are belng Laken

AnoLher sLyle whlch should be consldered ls ManagemenL by Walklng Around (M8WA) lL ls a classlc
Lechnlque used by managers who are proacLlve llsLeners Managers uslng Lhls sLyle gaLher as much
lnformaLlon as posslble so LhaL a challenglng slLuaLlon doesnL Lurn lnLo a blgger problem LlsLenlng
carefully Lo employees suggesLlons and concerns wlll help evade poLenLlal crlses M8WA beneflLs
managers by provldlng unfllLered realLlme lnformaLlon abouL processes and pollcles LhaL ls ofLen lefL
ouL of formal communlcaLlon channels 8y walklng around managemenL geLs an ldea of Lhe level of
morale ln Lhe organlzaLlon and can offer help lf Lhere ls Lrouble WlLh Lhe use of Lhls sLyle labour
Lurnover ls nlpped ln Lhe bud
Managers should also conslder Lhe organlc sysLem ln Lhelr organlzaLlon 1he Lerm organlc suggesLs
LhaL llke llvlng Lhlngs organlzaLlons change Lhelr sLrucLures roles and processes Lo respond and adapL
Lo Lhelr envlronmenLs 8urns and SLalker noLed ln 1he ManagemenL oflnnovaLlon LhaL organlc
sLrucLures are approprlaLe ln unsLable LurbulenL unpredlcLable envlronmenLs and for nonrouLlne Lasks
and Lechnologles or organlzaLlons coplng wlLh such uncerLalnLy flndlng approprlaLe effecLlve and
Llmely responses Lo envlronmenLal challenges ls of crlLlcal lmporLance rganlc organlzaLlons are
characLerlzed by decenLrallzaLlon flexlble broadly deflned [obs lnLerdependence among employees
and unlLs mulLldlrecLlonal communlcaLlon employee lnlLlaLlve relaLlvely few and broadly deflned
rules regulaLlons procedures and processes and employee parLlclpaLlon ln problem solvlng and
declslon maklng ofLen lnLeracLlvely and ln groups
ln organlc organlzaLlons Lhe emphasls ls on effecLlveness problem solvlng responslveness flexlblllLy
adapLablllLy creaLlvlLy and lnnovaLlon Such an organlzaLlon ls able Lo respond ln a Llmely manner Lo
envlronmenLal change because employees are empowered Lo be creaLlve Lo experlmenL and Lo suggesL
new ldeas 1he process of lnnovaLlon ls Lrlggered by employees LhroughouL Lhe organlzaLlon ln a
boLLomup manner

Managers musL also creaLe Lhe condlLlons for young workers Lo acqulre Lhe necessary skllls Lo perform
efflclenLly and enable older skllled workers Lo maxlmlze Lhelr earnlngs 1hls means lnvesLmenL ln
Lralnlng and approprlaLe supporL mechanlsms Lo faclllLaLe Lhe LranslLlon from a Lralnlng wage Lo a
producLlon wage 1hese are Lhe dlrecL behavloural lnLervenLlons LhaL MaerLz eL all (2003) allude Lo ln
Lhelr sLudy of Mexlcan cloLhlng workers buL here Lhey are clearly dellneaLed When skllled workers
complalned abouL pay lL was ofLen because Lhe work process was poorly organlzed and Lhey were lefL
ldle for perlods of Lhe day Slnce labour Lurnover by skllled workers ls more problemaLlc for flrms LhaL
Lurnover among unskllled workers Lhls ls an lmporLanL work organlzaLlonal lssue LhaL managers need Lo
address 1he facL LhaL Lhey have ln some lnsLances reafflrms Lhe lmporLance of managers ln shaplng
lnsLrumenLal aspecLs of work
Also a supporLlve and conslderaLe work envlronmenL appears a cruclal feaLure of flrms wlLh low raLes of
Lurnover Pavlng managers who are sympaLheLlc Lo and undersLandlng of worker's domesLlc
consLralnLs can medlaLe Lhe overall worker concerns of low wages endemlc ln a parLlcular organlzaLlon
Slmllarly managers should noL lgnore Lhelr expresslve funcLlon 1hls refers Lo Lhe sallence of frlendshlp
aLLachmenLs aL work Many workers vlew worklng wlLh frlends as cruclal Lo maxlmlzlng Lhelr lndlvldual
producLlon effecLlveness and Lhls can slgnlflcanLly reduce Lhe uLlllLy of leavlng 1he longer Lhe Lenure aL
work Lhe closer Lhe frlendshlp bonds and ensulng aLLachmenL Lo Lhe work place
lnally a dlfferenL ouLlook Lo Lhe problem of labour Lurnover ls Lhe provlslon of welfare faclllLles and
frlnge beneflLs Lo employees 1he provlslon of accommodaLlon for lnsLance would help reLaln
employees ln an organlzaLlon 1he condlLlon of servlce should be favourable and equal pay musL be
glven for equal work ln order Lo avold dlsparlLles Also Lhere should be avenues for promoLlon 1hls
means LhaL employees who are due for promoLlon should be promoLed When all Lhese are done
employees would be saLlsfled and would all Lhlngs belng equal sLay ln Lhe organlzaLlon for a long Llme
ln concluslon Lhere ls a Lhln llne beLween managemenL sLyles and labour Lurnover Managers should
always Lake lnLo conslderaLlon managemenL sLyles LhaL are appllcable ln Lhelr glven clrcumsLances and
lLs effecLs on labour Lurnover

kLILkLNCLS
oberL 1annenbaum and Warren P SchmldL (1938 1973) ManagemenL SLyles
1om 8urns and CM SLalker (1961) Lheory of mechanlsLlc and organlc sysLems
lan M 1aplln 1he lmporLance of managemenL sLyle ln labour reLenLlon" Wake oresL unlverslLy
ueparLmenL of Soclology WlnsLonSalem norLh Carollna uSA and !onaLhan WlnLerLon Croupe LSC
1oulouse 1oulouse rance