Solving The Employee Turnover Problem At Shwe Tun Co. Ltd

Choose a human resource management problem that is being faced in any real-life organization (including your own). Analyze the problem, apply concepts you learned from the text and class discussions, and suggest workable solutions. You will need to collect data on the problem; interview relevant people where needed. This paper will need to have the following: (a) background of the organization; (b) organizational chart (attach as appendix); (c) definition of the problem – why it is a problem; (d) history of the problem, with an analysis of the underlying causes; (e) solutions that you suggest; (f) why you suggest such solutions; what the solutions would achieve; and (g) an action plan for making this change happen. Please attach details about the sources of information. For interviews, attach business cards and dates interviewed

The paper must be a minimum of ten (10) and a maximum of fifteen (12) pages in length. Tables, charts, and pages containing details of sources will not be included in determining page length. Your choice of the term paper topic and an outline has to be turned in by session 4. This will not be graded, but will enable the instructor to provide you feedback. Failure to turn in an outline will result in a 10% deduction in the grade assigned to the term paper.

Organization background

Employee turnover in human resource management is one of the biggest problems that is being faced by all firms in the world. To understand the problem of Employee turnover the organization Shwe Tun Co. Ltd is being selected. The primary aim of the paper is to provide detail view on the problem along with the effective solution and strategic plan that need to be performed to deal with the issues. Detail discussion on the solution and the rationale of a solution is also provided in the paper with the suitable action plan.  

Shwe Tun Co. Ltd is the family own private company and it was established in the year 1940. The company is a car and truck dealer along with that import company which is located in Myanmar. The primary products of the organization are the construction trucks and agriculture machineries. All the products are imported from Thailand along with China. The organization is having headquarter in Yangon which is the second capital of Myanmar, and has the total of 671 employees. The company is having almost 27 branches that also in 15 states all over in the country of Myanmar. The vision statement of the firm is to seek for convenience of farmers and provide best agricultural trucks and machineries of superior quality. The mission statement of the firm is to increase the human resource as well as expand the working function to international level till the year 2030. Being the family-owned company most decisions regarding the business is taken by the owner of the firm. The organization has the core value to provide best products to their customers in the market and they give more priority to the needs of the customers in the market.

Organizational chart provides the view on working function and the executives within the organization. In the Shwe Tun Co. Ltd, the present owner of the firm is Mr. Ohnmar and also he is the managing director of the firm. The organization is having a sales and marketing, the customer service, finance and the human resource departments. All their senior executive posts are run by the family members. There are hundreds of workers under the various department and they provide a suitable working function to the market. The managers of physical branches in 27 places is being controlled by the non-family members. The organization chart of the firm is developed to focus on the operational areas that are followed by the firm. The organization maintains hierarchy organizational structure for their operational function in the market.  The basic organizational structure of the firm is to maintain effective working function within the market with suitable value and organizational development scope.

Organizational chart

The primary problem that is being faced with the organization is the high employee turnover problem. The employee turnover problem is one of the basic and the huge problem that is being faced by the firm in the market (Hom, Lee, Shaw, & Hausknecht, 2017). It is evaluated that the employee turnover is the natural part of the business in any kind of industry but excessive turnover rate within the organization faces a huge problem in the production as well as performance level. The organization is facing huge employee turnover rate due to the facts that most of the time they must face rude attitudes and behavior of their owner. As this is a family business, therefore, the owner of the firm took a final decision and for that most of the time he did not listen or care about the decisions and suggestions of others. Employees feel that their report of problems to executives are useless since they believed “Any change in the firm will not occur no matter how many times we report or suggest.” Another reason for the huge turnover rate is that the job did not have the ability to meet the expectation of the workers. The salary is not enough according to the designation and the position and also career growth in this organization is not visible (Ehrhart, & Kuenzi, 2017). Newly hired employee earn 82.35 US dollar per month (not include a meal and place to stay), which talented and educated employee would prefer and work elsewhere. As a typical family business, career growth or development for the employees in the firm is not provided which is one of the primary reason for turnover rate.

The employees are not satisfied with the working function of the firm and also they feel undervalued in the family business (Nica, 2016). Suitable and effective training regarding the job is also not provided and for that, the employees did not have a suitable idea regarding the execution of their job. It makes the employees feel worthless in the firm and also they did not find any kind of attraction within the market to perform their activity. The decision-making ability of the managers is not effective and also they did not have the power to present their view regarding the job (Selden, & Sowa, 2015). There are numerous reasons that are creating an issue within the firm to maintain various activity in the field and to provide a working function for the development of the organization. Employees getting a better opportunity and working function in other organization is easily shifting their career. Another reason for this problem is that in this organization the promotion is frozen (Pohler, & Schmidt, 2016). Since mostly executives’ positions are boss family members, it is really difficult for the employees to get promotion for their operation and effort within the business. Employees have lack of faith in their upward mobility within the firm.

The problem faced by the organization

Employee turnover problem is not new in the business but in the recent years, this have been increased a lot within the family business market. The organization is quite old but as it is the family business, the entire working function is based on the family members. It can also be seen that in most of the executive post are held by the family members (Purl, Hall, & Griffeth, 2016). The organization need to develop an effective way to deal with the labor turnover of their working function. In the family business of agricultural trucks and machinery dealers, they did not look for the betterment of employee, which is the vital reason that they face huge turnover problem in the market. In case of Shwe Tun Co. Ltd, undertaking the steps that are supposed to be effective and suitable for the working function in the market to develop productivity along with the quality of benefits within the field.

The problem of employee turnover is from the starting of the firm but at that time the competition level was low (Myanmar international trade was strictly controlled until 2015), which make the turnover rate minimal issue for the firm (Taylor, 2016). But today, they are facing dozen of strong competitors in agriculture such as Kutoba (Japan), John Deere (US), New Holland and dozen other Chinese companies. Most of those international competitor companies hire talented employees and pay high salary from their rival companies. From the beginning of the firm till date the primary reason for employee turnover is the frozen promotion of the organization. The firm is having an effective working function to deal with various activities in the field and to perform an effective process in the field. The firm is facing problem to maintain their employee due to the facts that they did not follow effective business rules and regulation. They were also unable to deal with the various problems that has been faced by their staff members regarding compensation, wages, and benefits and so on. These are some of the basic facts that led to high turnover of the employees.

Hiring the right people for the organization is vital to maintaining the turnover rate of the firm (Mathieu, Fabi, Lacoursière, & Raymond, 2016). Recruitment of the right people in the organization helps to analyze the need of the staff members. Effective recruitment and selection procedure need to be performed by the firm. This process can be effectively done with the help of suitable solution to maintain the activity of the field. Suitable job description along with the effective interview process needs to be utilized for maintaining the working function of the employees within the field (Hammond, “Class Discussion” MGMT 674 Lecture #3, 2018). This is one of the most essential factors for the firm to develop their business within the market and to avoid prejudice of their relatives in the job position.

History of the problem

Offer competitive pay along with benefits: 

The organization needs to provide suitable payment along with the effective benefits so that the employees feel satisfied for working within the organization (Forbes.com, 2018). The firm should provide benefits like accommodation facility then pick up and drop facility especially for women candidates and so on. The organization also need to pay to their employees according to their designation and their performance level within the firm, which is one of the best ways to ensure losing the employees from switching job to other rival’s companies (Hammond, “Class Discussion” MGMT 674 Lecture #5, 2018).

Give praise: 

Praising the employees for their activity is one of the effective ways that allows reducing employee turnover within the market (Worrell, 2018). Praising helps to motivate the people and also provide them the view that they are important for the firm and the boss. It is essential to show the value of an employee in the market for the development of business and the working process within the organization. This process is quite effective for boosting employee’ confidence and for the business to maintain their employees in the market.

Show the career path: 

In the family business career growth is not present but the organization can effectively make broad of directors to increase their business and provide suitable promotion to the lower level of workers (Katsikea, Theodosiou, & Morgan, 2015). A promotion, as well as growth in the business, will help to develop their skill and their working function within the market. The organization need to develop valuable working function so that they can increase production level as well as the performance level within the market.

The rationale for solution 

Employee turnover is a serious issue which is faced by various organizations, whether large or small. In order to reduce the rate of employee turnover, Shwe Tun Co. Ltd should hire employees with the right talent. Employees who will be able to fit within the organizational culture are more likely to stay in it for a longer time. It is important for the organization to hire workers who are able to identify themselves within the organizational culture. During interviews, the management should ask some behavioral questions to decide whether they are best suited for the company. Implementing this strategy will enable the management to decide whether to hire a particular candidate based on the answers from the behavioral questions. This strategy will allow both management and the candidates to save their valuable time. Providing proper compensation to the employees will allow the management to reduce their overall employee turnover rate. By conducting market researches, the management will be able to know what their competitors are offering to their employees. They can increase the amount of compensation for their employees, thus preventing them to leave their organization.

Workable solutions and rationale

Recognizing and appraising the talented employees of the firm will allow them to feel valued and respected within the workplace. The employees want to stay with a company where they will be respected and appreciated. They will be encouraged to stay in the workplace thus reducing the overall turnover of the company. Stagnant career path within firms is one of the reasons contributing to higher employee turnover rates. Employees want to stay with a firm where they can advance their professional career, develop new skills and abilities. Valuable operational function within the firm is highly required to provide effective training for the staff members within the organization. If the employees can know about the career path of the organization, they will be able to decide whether or not to stay in a particular firm. A well-developed career path will be able to provide a sense of direction to them and they will be motivated to stay within the organization. It will act as a motivation for these employees to stay within a particular firm and commit to achieving the organizational goals.

Impacts of these solutions

Hiring right employees will create a positive impact, as the employees will be happy to work for the management of the organization. Satisfied employees will commit themselves towards achieving organizational goals, thus increasing the overall productivity of the organization. Higher paychecks and additional benefits will act as a motivating factor for them to stay within the organization. Recognition and appraisal will have a positive impact on the motivation of these employees. As they feel they are desired by their organization, they are more likely to stay within the organization. Along with these factors, a defined career path is provided within the organization for their staff members (Hammond, “Class Discussion” MGMT 674 Lecture #3, 2018).

Strategies plan for the employee turnover within the business are as follows:

• Invest in the professional development of employees
• Establish the clear-cut policies as well as the expectation for the employees
• Provide the beneficial package for the staff members within the organization
• Create the culture of open communication within the organization
• The organization need prioritize to provide value for the employees
• The organization needs to provide the employees with the meaningful work

Changes within the organization should be implemented to maintain the performance level of the employees, which need to be performed with the help of effective strategies plan. The solution to deal with the employee turnover problem can effectively be done with suitable action plan. The primary step for the business leader is to understand the turnover issue within the business and at the same time need to communicate with the employees. Maintaining an open communication with the employees will help to gain knowledge on many other solutions to deal with employee turnover in the organization. The fact is clear that the organization need to deal with the various working function and for that they need to perform all the required actions.

Action plan for making the change happen

The organization also need to introduce broad of directors to their firm and develop their business and also gain the suitable view of their workers for any business decision making process. Empower the employees with effective training process and providing them with the policy book to deal in the market. The organization need to check the working function of the employees to provide them effective reward for their performance level. The organization need to segment the working function equally to all the people so that none of the employees feel overburden due to their work.

Conclusion

The paper eventually concludes the facts that the business need to change their operational function to maintain their employees in the market. Being the agriculture truck machinery dealer as well as importer company it is essential for them to develop a suitable working function for the employees. The organization need to develop their process for gaining the trust of the employees and also, the need to improve the working function of the firm.

The paper also concludes the facts that Shwe Tun Co. Ltd can develop their business and maintain the working function within the market to deal with the turnover rate of the firm. The organization with their suitable solution for the development of process can effectively maintain their high employee turnover rate. Providing suitable operational function as well as the career growth for the employees is the unique and the best step that would be taken by a family business. Most vital fact in this provides suitable solution to maintain various activity in the market.

References

Ehrhart, M. G., & Kuenzi, M. (2017). The Impact of Organizational Climate and Culture on Employee Turnover. The Wiley Blackwell Handbook of the Psychology of Recruitment, Selection and Employee Retention, 494-512.

Forbes.com. (2018). Retrieved 16 June 2018, from https://www.forbes.com/sites/mikekappel/2017/08/09/5-ways-to-reduce-employee-turnover/#3e600e3d5001

Hammond, J. (2018, May 16). “Class Discussion” MGMT 674 Lecture #3). Redlands, CA, USA.

Hammond, J. (2018, May 30). “Class Discussion” MGMT 674 Lecture #5). Redlands, CA, USA.

Hom, P. W., Lee, T. W., Shaw, J. D., & Hausknecht, J. P. (2017). One hundred years of employee turnover theory and research. Journal of Applied Psychology, 102(3), 530.

Katsikea, E., Theodosiou, M., & Morgan, R. E. (2015). Why people quit: Explaining employee turnover intentions among export sales managers. International Business Review, 24(3), 367-379.

Mathieu, C., Fabi, B., Lacoursière, R., & Raymond, L. (2016). The role of supervisory behavior, job satisfaction and organizational commitment on employee turnover. Journal of Management & Organization, 22(1), 113-129.

Nica, E. (2016). Employee voluntary turnover as a negative indicator of organizational effectiveness. Psychosociological Issues in Human Resource Management, 4(2), 220-226.

Pohler, D., & Schmidt, J. A. (2016). Does Pay?for?Performance Strain the Employment Relationship? The Effect of Manager Bonus Eligibility on Nonmanagement Employee Turnover. Personnel Psychology, 69(2), 395-429.

Purl, J., Hall, K. E., & Griffeth, R. W. (2016). A diagnostic methodology for discovering the reasons for employee turnover using shocks and events. Research handbook on employee turnover, 34, 213-246.

Selden, S. C., & Sowa, J. E. (2015). Voluntary turnover in nonprofit human service organizations: The impact of high performance work practices. Human Service Organizations: Management, Leadership & Governance, 39(3), 182-207.

Taylor, S. (2016). 9 Compensation policy and employee turnover. Research Handbook on Employee Turnover, 166.

Worrell, S. A. (2018). A study of causes of and solutions to employee turnover at business products: Massy Technologies Infocom Trinidad Limited (Doctoral dissertation).