ROOT CAUSES OF THE ORGANIZATIONAL PROBLEM 1
ROOT CAUSES OF THE ORGANIZATIONAL PROBLEM
Brainstorming with an Affinity Diagram
The main problem the organization is facing is employee turnover which has cost it a lot of revenue because the profits have gone down as a result of customers pulling out with claims of the store not having a wide range of products and services it used to have before. Besides, there have been speculations of some shareholders withdrawing from the company. Understanding the factors that may reduce turnover is crucial for these firms to sustain a competitive advantage and differentiate themselves from their competitors (Jan & Kandampully, 2018).
Why is there a high turnover rate in the company?
No career development
Lack of hiring
Lack of feedback
Lack of training
Lack o employee evaluation
Reasons Behind the Turnover Based on Commonalities
Employee turnover rate
Lack of leadership
Lack of employee training
Little opportunity for growth
Lack of employee evaluation
Lack of Compensation
The above reasons cannot all at once lead to employees leaving their jobs. One of them is the major reason why all the others exist which eventually lead to the high turnover rate. To be able to find a linkage of the above reasons to get to the root cause of this problem, it is important to understand that there is usually a process before an employee quits, for example, there is usually dissatisfaction then thoughts of quitting which is followed by subjective expected utility analysis of the benefits and costs of seeking alternative jobs and turning over then search intentions, evaluation of alternative job offers, comparison of job offers with the present job, intentions to quit and finally actual quitting (Lee et. al., 2017).
The connection in the above illustration is that in order for the organization to get the best results, it needs to invest in the workforce by enhancing its skills. This is a reason for the turnover because the company keeps evolving in terms of technology and how it operates its business and not training them means a lack of knowledge on what they are supposed to do which ends up making them strain while doing their jobs and at the end of the day they decide and quit because it becomes a lot of pressure for them. The company expanded, which is an excellent move but the problem is no hiring was done to get employees to work in the new stores. The company leadership plays a major role in this. It is the management’s job is to make sure of employee satisfaction. However, I will not rule this as the root. I will therefore use the five-way root cause analysis to determine the root cause of the high rate of employee turnover in the organization.
Five Whys Root Cause Analysis
Defined Problem: High rate of employee turnover.
Why are a lot of employees leaving their jobs in the company?
1. Employees feel they are not being valued because the management no longer compensates them nor invests in them as the company’s workforce and the company does not have a good information flow where they can give feedback.
2. Employees feel overworked as a result of a lack of knowledge due to the upgrade in operations and customer service which has led to most of them quitting their jobs because the company is responsible for teaching them how to handle new equipment and protocols in case of any changes.
3. Employees feel that the company is not giving them a chance to grow professionally. This is because they are never compensated which could be in terms of a promotion or sponsorship to further their studies so that they can have more knowledge about the job.
4. A lot were asked to move in the new stores and this led to most of them opting to leave the company because it was a major change on their part. For the employees that the organization still has, most of them feel overworked because they are few, not to mention the pressure that they are feeling. After all, they have not been trained on how to go about their jobs in the past two years. Employees are overworked because the management stopped hiring more employees yet the company expanded. Most of them were asked to relocate to the new branches and this made them quit leaving the one behind understaffed.
5. Most managers are not skilled with management training hence they do not usually know how to handle employee grievances in terms of performance feedback, what is expected of them, reasonable working hours, and transparency. The reason behind this is because the company’s leadership has not invested in its management workforce to manage the employees.
The question to be asked here is why does the organization allow such to happen and this boils down to leadership because if there was good leadership, there would have been information feedback and the company would have known what is happening with its employees. Various components that can be accountable for the increase in the attrition rate of the employees include employee discernment, reduced job satisfaction, injustice in the organizations, macho culture, financial pressures, and so forth (Majeed et. al., 2018). However, in this case, based on the analysis, the main thing that stands out is the company’s leadership. Most of the employee problems are a result of poor management which has consequently led to the high turnover rate. A change in the company’s leadership would prevent employee turnover.
Jang, J., & Kandampully, J. (2018). Reducing employee turnover intention through servant leadership in the restaurant context: A mediation study of affective organizational commitment. International Journal of Hospitality & Tourism Administration, 19(2), 125-141.
Kim, S., Tam, L., Kim, J. N., & Rhee, Y. (2017). Determinants of employee turnover intention. Corporate Communications: An International Journal.
Lee, T. W., Hom, P. W., Eberly, M. B., Junchao (Jason) Li, & Mitchell, T. R. (2017). On the next decade of research in voluntary employee turnover. Academy of management perspectives, 31(3), 201-221.
Majeed, N., Jamshed, S., & Mustamil, N. M. (2018). Striving to restrain employee turnover intention through ethical leadership and pro-social rule breaking. International Online Journal of Educational Leadership, 2(1), 39-53.
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