Valley Winery, a successful wine company based in California is quite profitable but faces many problems in their organization. Such problems consist firstly of a very high employee rate turnover rate. This rate is actually 100% per year. Each year they hire an average of fifty sales people per year and the longest working sales rep has only two years of experience with the company. A second problem facing this organization is its complications with management skills. And the third problem is the lack of skills that salesmen possess
The problem of the high employee rate is a large issue. This mainly because the reduction in the turnover of employees will definitely increased profitability keeping it easier to obtain future sales. This issue
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With regards to continuous restructuring of the company. This issue is a big factor that even stimulates the first problem. With the re- evaluation of the organizational structure the employees tend to lose confidence and trust in those in charge and therefore their performance is hindered because of this. Concerning the hiring skills of the company it is very inefficient such as recruiting college kids, newspaper advertisements, employment agencies and job notices on job search websites. These hiring skills are very costly and time consuming. The high expectations of management to meet high quotas is unreasonable and thus puts pressure on the salesmen causing them to perform unethical actions such as posting incorrect sales figures just to please their managers. Options that can assist the firm in these issues are by management evaluating the company and making a consistent and permanent organizational structure. To make the hiring process more efficient it needs to be shorter in length, be specific in the characteristics of the potential employee to avoid the many steps and narrow the amount of hiring methods to reduce costs. Not stretching quotas is another factor that needs to be considered by management. This can be done through lowering their expectations of sales in the same time frame that currently exists making them realistic, give incentives if they need to be stretched, employ feedback from sales persons so as to assign comfortable quotas around each
After compiling all the information, from researching the topic of high turnover rates in a company to find what can be done to correct it in an effective manner. I have found that many areas of a company are affected and to what level of
According to consultants in the case study, “We have found the output and also the input quality control inadequate and ineffective, substandard raw materials have been accepted from suppliers on fourteen occasions have repeatedly gone bad while in storage, inadequate supply of some items has either stopped or slowed down production, the morale among production workers is found to be very low.” The team leader is not performing his job well. The employees are being nonchalant at work which is destroying company’s image. As a result, the company will lose its business.
High employee turnover, where workers frequently leave and must be replaced, leads to increased spending on recruitment and training and can indicate management problems. Employees often have good reasons for moving on but if too many are leaving an organisation, can be very disruptive.
Summary: Even though the Regional Sales Manager position has a 30% amount leaving the company, they are not promoting within. The Managers has a high percent staying in the same position. There are no opportunities for higher positions in this company, and the turnover rate is continuing to rise.
Now the organisation is looking at taxes and fuel costs rising a problem mentioned in the case study. This problem is related to two other problems which is lack of staff communication as well as transportation as they are the key aspects in making profit in an organisation. The work flow of the staff and whether the products are delivered on
However, there are a lot of things can be done. Most of the employees are hourly employees. Since they are unionized by an external union, hiring to many hourly workers makes trouble on managing them. It also makes the foremen less powerful because they are not directly in charge of the hourly workers. Thus I suggest hire more salaried workers. The salaried workers may be more efficient at work,
In addition to that, there is no proper guidance given to help these employees perform well. Since, there is a constant turnover of employees, it becomes difficult to train them. Also, training is
After reviewing the case, I believe that there are three key issues that have affected the Human Resources department in terms of keeping up with the company growth. The three key issues are the employee turnover rate, training programs and
There is an important issue which needs consideration which is known as Human Resource . No matter whatever the financial strength the company has , or how fast it is
To reduce the costs they need to be more efficient and improve the turnover ratio especially in times of economic recession
Every organization experiences a dilemma at one or more times in their lifespan. These issues are often realized late creating an even bigger problem for a company that may have been easily fixed had it not been neglected earlier. Employee morale is a major factor to any company’s success when it is at its best. In addition, Morale provides numerous benefits including high employee productions, individual longevity, and increased company competiveness (Bowles, 2010). Companies that seek to increase their competiveness must seek to attract talent. This can be achieved by providing high employee satisfaction and low turnover rates. Ultimately, TIC has failed to meet these expectations in several areas. One important issue is the relatively high turnover rate that that has been seen in recent years. This is largely due to poor working conditions consisting of minimal workspace and high workloads. These type of conditions will influence quality employees to leave and join a competitor making it impossible for TIC to increase their Customer Service Position. Past leadership has also posed a negative effect on the current employee morale. Individuals who have been with the company for many years have expressed their distrust for upper management. This is largely due to management making false promises in the past failing to solve any of the employee concerns.
In reducing high turnover among new sales personnel, the first thing that firms should do or the employers of that firm should do is to match the job with the best suited to perform it. High turnover organizations spend disproportionate amounts of resources on recruiting and replacing their workforce, while smart organizations invest in employee retention. Indeed that there's going to be turnover no matter what you do, but blindly ignoring the reasons for turnover is foolish and expensive.
Employee is a very important asset of a company as it can’t function well without enough manpower.
The implications of these problems is that turnover rate will increase and as a result it will cost the organization. With high turnover rates efforts to recruit and train staff will directly affect the work of the human resources administrator at the district level and building administrators. While majority of the problems are under the jurisdiction of the building administrators it is the shared responsibility of the human resources at the district level as programs must be in place to deal with these issues such as EAP ( employee assistance program and
It is all too difficult for management to cut the right amount of workforce and hence, if not done correctly, companies end up losing skilled and reliable workers.