Organizational Management

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MT302 Organizational Behavior

Unit One: Case Incident 1

How a UPS manager can cut turnover

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1. In dollars-and-cents terms, why did Jennifer Shroeger want to reduce turnover?

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In Buffalo New York, UPS operations prime objective is to find a way to overcome their fifty percent a year turnover rate in which cost them over millions of dollars per year. In hopes of resolving this issue the company promoted Jennifer Shroeger to district manager. But first she needed to find what was costing the company so much money and why there was so much turnovers.

She knew that a high turnover rate results in an increase of recruiting, selection, and training costs. She also found in addition, a high rate of turnover could disrupt the efficient running of an organization when knowledgeable, experienced personnel leave, and replacements found and prepared to assume positions of responsibility; this ad up to dollars and cents because of loss productivity (Judge, 2007).

For example, on UPS's Pressroom website states, "UPS spends more than $300 million per year on training and education programs for its worldwide workforce". Jennifer, saving over a million dollars a year and dropping the turnover rate from fifty percent to six percent surely contributes toward saving this Organization lot of money (United Parcel Service of America, 2004-2010).

2. In addition to turnover, what other criteria should Ms. Shroeger examine in evaluating the effectiveness of the UPS program? Why is it important to examine multiple criteria in evaluating an OB program?

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In addition to turnovers, other criterion examined was Ms. Shroeger's development of a comprehensive plan focusing on improving hiring, communication, the workplace, and supervisory training. Ms. Shroeger followed the Basic OB Model, Stage II and modified the hiring process to screen out people who wanted full time jobs. She also distinguished...