As a new member of the board of directors for a local manufacturing company, Mohsin Khan was being introduced to all the employees in the home office. When he was introduced to Hassan Khan, he was curious about his work and asked him what the machine he was using. Hassan replied that he really did not know what the machine was called or what it did. He explained that he had only been working there for 2 months. However, he did know precisely how to operate the machine. According to his supervisor, he was an excellent employee. At one of the site offices located in another city, the supervisor in charge spoke to Mohsin confidentially, telling him that something was wrong, but he didn’t know what. For one thing, he explained, employee turnover was too high, and no sooner had one employee been put on the job than another one resigned. With customers to see and place orders, he continued, he had little time to work with the new employees as they came and went.  All site supervisors hired their own employees without communication with the home office. When an opening developed, the supervisor tried to find a suitable employee to replace the worker who had quit. After touring the 22 sites and finding similar problems in many of them, Mohsin wondered what the home office should do or what action he should take. The manufacturing company generally was regarded as being a well-run company that had grown from 27 to 191 employees during the past 8 years. The more he thought about the matter, the more puzzled Mohsin became. He couldn’t quite put his finger on the problem, and he didn’t know whether to report his findings to the president. a) Based on the above scenario, what do you think is causing some of the problems in the company home office and site offices?  b) As an HR manager what suggestions you can provide to Mohsin Khan to reduce employees’ turnover?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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As a new member of the board of directors for a local manufacturing company, Mohsin
Khan was being introduced to all the employees in the home office. When he was introduced
to Hassan Khan, he was curious about his work and asked him what the machine he was
using. Hassan replied that he really did not know what the machine was called or what it did.
He explained that he had only been working there for 2 months. However, he did know
precisely how to operate the machine. According to his supervisor, he was an excellent
employee. At one of the site offices located in another city, the supervisor in charge spoke to
Mohsin confidentially, telling him that something was wrong, but he didn’t know what. For
one thing, he explained, employee turnover was too high, and no sooner had one employee
been put on the job than another one resigned. With customers to see and place orders, he
continued, he had little time to work with the new employees as they came and went.
 All site supervisors hired their own employees without communication with the home office.
When an opening developed, the supervisor tried to find a suitable employee to replace the
worker who had quit. After touring the 22 sites and finding similar problems in many of
them, Mohsin wondered what the home office should do or what action he should take. The
manufacturing company generally was regarded as being a well-run company that had grown
from 27 to 191 employees during the past 8 years. The more he thought about the matter, the
more puzzled Mohsin became. He couldn’t quite put his finger on the problem, and he didn’t
know whether to report his findings to the president.
a) Based on the above scenario, what do you think is causing some of the problems in the
company home office and site offices? 
b) As an HR manager what suggestions you can provide to Mohsin Khan to reduce
employees’ turnover?

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