How a Ups Manager Can Cut Turnover

Unit One: Case Incident 1: How a UPS Manager Can Cut Turnover

Jennifer Shroeger wanted to reduce turnover because it was costing UPS’s operations in Buffalo, New York money. The part-time workers, which were half of Buffalo’s workforce, “were leaving at a rate of 50 percent a year” (Robbins, 2007, p. 38). This high attrition rate meant that UPS’s operations in Buffalo did not have a stable workforce. By evaluating the situation and making the necessary changes in order to reduce attrition, Ms. Shroeger saved UPS an estimated $1 million in hiring costs, and the attrition rate dropped from 50 percent to 6 percent. Her plans also achieved a 20 percent reduction in lost workdays and a drop from 4 percent to 1 percent in worker errors.

The other criteria that Ms. Shroeger should examine in evaluating the effectiveness of the UPS program is productivity, absenteeism, deviant workplace behavior, citizenship, and job satisfaction. She needs to evaluate productivity to make sure that the company’s goals are met effectively and efficiently. Absenteeism, if it is high, can have a negative effect on a company’s productivity and efficiency. Any deviant workplace behavior would need to be examined. Ms. Shroeger would need to understand why this behavior is occurring in order to get to the root of why the worker is dissatisfied. Ms Shroeger should also evaluate citizenship behavior. She needs to understand which workers are willing go beyond their normal job duties. Companies that have these types of workers usually do very well. Lastly, job satisfaction needs to be evaluated. If workers are not happy and they are frustrated with their jobs, this dissatisfaction will eventually affect productivity and efficiency.

It is important to examine multiple criteria in evaluating an OB program because the manager is dealing with a diverse workforce. Managers need to learn how to address and value their workers’ different lifestyles, family needs, and...