A High Level of Labor Turnover

I. Identification of Problem

Some of the main problems facing HB were a high level of labor turnover, production below targets, high levels of scrap, attitude, and atmosphere. Workers experienced low levels of motivation, low job satisfaction, and received little feedback from management about their performance. Compensation and interpersonal issues between workers and management were not uncommon.

How well a manager performed was in terms of overall production. When production fell below charts, the pressure was transferred to the supervisors who stressed the employees for an increase in productivity. Sometimes the production supervisor pushed the pace of work at levels unattainable by the workers. He also ignored the wishes of the staff to work less in the afternoon when they were tired. In both cases, high level of scrap resulted and feeling of dissatisfaction spread amongst the workers.

Seasonal peaks and troughs in the market demand created additional problems in HB. During busy periods, unskilled labor was drafted in to assist. When demand was low, workers were transferred to other departments where they were given the least desirable position. In either case, the employee view of management practices received much criticism. The blame shifted from one person to the next, from one department to the other, until all the employees, supervisors, and senior management agreed that HB was in a crisis.

Organization Theory which would provide basis toward solution of the problem.

1. Behavior Management.

Too many companies believe that employee motivation rests in monetary rewards, without either realizing or acknowledging individuals' needs for recognition. Formal studies and informal surveys alike reveal that while managers often will list money as the top factor in motivating employees, the employees themselves are much more