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The reason why Jennifer Shroreger wanted to reduce turnover is because she noticed that workers were leaving at a high rate. Employee turnover can cost organizations millions of dollars. A company may incur direct and indirect cost when employees begin to leave. It was her responsibility to find ways in which she would be able to maintain the employees that she currently had. In 1998, Jennifer Shroeger was promoted to district manager for UPS’s operations in Buffalo, New York. She was responsible for $225 million in revenue, 2,300 workers, and the processing of some 45,000 packages an hour (Proust, 2007). When she was hired, she evaluated the company and noticed there was a serious problem. She had decided to fix the problem of employee turnover. In order to fix the problem she must first understand why employees were leaving.
Manager must create policies that will minimize employee turnover. When employees are not happy they will search for employment. There are many jobs available on the local economy. In many case most of them are offering incentive plans. Employee turnover is a ratio comparison of the number of employees a company must replace in a given time period to the average number of total employees. A huge concern to most companies, employee is a costly expense especially in lower paying job roles, for which the employee rate is highest. There can be many different reasons why employee turnover may occur. Some of these reasons can be wages; company benefits, employee attendance, and job performance are all factors that play a significant role in employee turnover.
Ms Shroeger should examine the integrity of the UPS program to determine what areas of concern need to be addressed. A through review of the program can enable managers to establish a plan to eliminate the high rate of employee turnover. Economic and labor market conditions can be the leading cause of high turnover rates. However, certain causes associated with turnover in any specific job or organization can be managed. These include such things as non-competitive compensation, high stress, working conditions, monotony, poor supervision, poor fit between the employee and the job, inadequate training, poor communications, and organization practices (Robins & Judge, 2007).
It is important to examine multiple criteria in an organizational behavior program because managers must understand how to build better relationships with their employees. This understanding will enable managers to build a stronger organizational foundation. Once UPS has a strong foundation they will be able to eliminate high turnovers and achieve organizational goals. The organization’s base rests on management’s philosophy, values, vision and goals. This in turn drives the organizational culture which is composed of the formal organization, informal organization, and the social environment (NWlink, 2009).
UPS manager must understand the organization culture. Once managers understand the culture of the organization they will be able to shape and mold the culture to their liking. The culture determines the type of leadership, communication, and group dynamics within the organization. The workers perceive this as the quality of work life which directs their degree of motivation. The final outcomes are performance, individual satisfaction, and personal growth and development. All these elements combine to build the model or framework that the organization operates from (Drafke, 2006).
The most important implication for managing labor shortages in the future is when a talent gap hits those roles that are critical to the organization’s ability to execute its business strategy and chronic vacancies begin to erode revenue. For example, turnover in key roles for developing innovations and bringing them to market would have a great impact on the top-line results of innovation-based companies, which would forgo revenue as a result of a lack of new products (Allbusiness, 2010). Managers must ensure they are replacing talented employee with talented employees.
In todays business environment managers must settle for whatever individual; is available to fill the position. It is important for manager to fill vacancies with individuals that know how to do the job and understand the organizations environment and goals. Managing the problem requires understanding how the company’s turnover varies by population segment and which segments have the greatest impact on its ability to deliver its core business services and products and drive its long-term strategic success (Robins & Judge, 2007).
It is not unethical to teach supervisors to demonstrate interest in workers as individual. Managers should always look out for the wellbeing of their employees. It is critical that managers communicate with employees so that they can learn what’s going on within the work and home environment. When employees see that managers are taking the time to communicate with them they will be more appreciative. Managers must ensure employees have the resources they need to meet organizational goals. Once organizational goals are meet, managers must provide incentives to employees as a form of appreciation.
The contingency approach that supports the argument that organizational behavior should be approached from a contingency perspective is based on the idea that there is no one best way to manage and that to be effective, planning, organizing, leading, and controlling must be tailored to the particular circumstances faced by an organization (Robins & Judge, 2007).. Managers should review organizational policies and procedure on a daily basis, so that they can determine whether changes need to be made.
In conclusion high turnover rates can be cased by many different factors. Managers must ensure they are providing effective leadership and communication to employees so that turnover rates can be minimized. Managers can also provide leadership training to those mid-level managers who might be having a difficult time leading and communicating with their employees. The purpose of directing is to channel the behavior of all personnel to accomplish the organization’s mission and objectives while simultaneously helping them accomplish their own career objectives.
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