Final Assignment

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Date Submitted: 09/24/2010 02:06 AM

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MT302 Organizational Behavior

Unit One: Case Incident 1

How a UPS manager can cut turnover


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

It makes sense for Jennifer to reduce turnover because the constant hiring, and re-training of employees is very expensive. Recruiting and training costs for new employees are usually higher in companies with high turnover rates. This in turn affects the productivity, quality, and service resulting in these areas being lower in companies with high turnover rates. If she is able to reduce turnover, and employees stayed in the job, all these associated costs would become less and less, and there would be an increase in the productivity levels, better quality goods produced, and better service to customers as well. Better service would then, in turn, bring new customers, and also create loyalty in existing customers. Overall, lower operating costs in the recruiting and maintaining of employees will save UPS lots of money, as well as, help to become more competitive with companies without a turnover problem.

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?

3. What are the implications from this case for managing in future years when there may be a severe labor shortage?

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4. Is it unethical to teach supervisors “to demonstrate interest in workers as individuals”? Explain.

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5. What facts in this case support the argument that OB should be approached from a contingency perspective?

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