The Application Of Historical And Modern Management Theories In The Financial Industry: An Analysis Of How Management Practices Affect Employee Turnover!

Abstract

Employee turnover has always been and continues to be a challenge for managers and entrepreneurs.  As managers in the banking industry continue to experience the negative effects of voluntary turnover of tellers and other critical positions, they persist to look for ways to do their jobs better and provide more competitive services to their customers.  Some of the literature indicates that a number of the current management practices, fueled by questionable management theories, could be contributing to the increase voluntary turnover ratios. This paper is a literature review as well as application of general management theories and their effect on voluntary turnover in the service industry.  It further offers analysis and suggestions for managers, especially for those who are in the service and banking industries. The authors’ observations, suggestions, and recommendations are based on research and nearly fifty years of combined experience as managers and leaders in the banking and service industries.