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Unit I - Book Report/Review Example

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Unit I

Moreover, the company intends to expand its facilities and so it must address this major issue of employee turnover.
In the recent past employee turnover has increased and key personnel are leaving. This is having a broad effect on internal costs. The acts of hiring new employees, training them, enabling them to grow as professionals all incur huge costs. This is evident by the statistics presented which indicate that company growth is stable at 5% but costs have been rising at an average of 2.5-4% in the past 3 years. If this trend continues then ultimately JRT will head towards major financial losses. Such losses can be very heavy for a consumer product company which needs to invest substantially in marketing and advertising. However, losses would mean slashing advertising budgets. Moreover, JRT's reputation in the industry will be effected which will lower the moral of the existing employees and in turn reduce their productivity.
Key personnel turnover can occur if managers feel dissatisfied and do not see opportunities to grow. The most basic problem arises when senior managers feel their productivity is reaching a stage of stagnation. This could be possible if they feel their job is not challenging enough, or perhaps if they consider it monotonous and boring. For this purpose it will also be important to talk to as many people as possible to gauge the nature and extent of the issues involved. Several in depth interviews need to be conducted in order to find the main cause of dissatisfaction at work

To get a better hold of the issue we also need to survey and analyze existing financial documents of JRT. This would include recent balance sheets, profit and loss statements, cash flow statements, financial disclosures etc. We also need to evaluate pay scales of existing employees and also of those key personnel who have already quit.

Step 3: Problem Definition
Research Problem Delineated
To what extent is the organizational structure effective producing committed long term employees
As per the company's HR policies, is it choosing, hiring and retaining efficient managers

Literature Review & Research Questions
In order to get a better hold of the issue identified we need to start with some data gathering activity. For this purpose we need to read professional magazines, recent newspaper articles and other research sources to analyze why the problem of key personnel turnover takes place. Recent articles on this issue will help in knowing the latest industry trends and market activity.

Questions like the following need to be addressed: 'Are you satisfied with your job' 'Does your job provide you opportunity to grow' 'Would you like to see any changes in your work responsibilities' 'Do you feel your job is annually appraised'

Step 4: Theoretical Framework

High employee turnover can be due to a variety of reasons. The most basic problem can be as identified the company policy of promoting employees on the basis of tenure rather than on qualification and competency. This can ...Show more


Juicy Red Tomato Company (JRT) is facing problems of rising costs. The company has identified some external factors such as weather conditions but we need to dwell into the issue and look at what internal factors may be leading to high labor costs. The problem of high employee turnover has been singled out and its possible reasons could be the company policy of 'promoting from within-the longer you stay with the company the more you can rise.' This proposal is aimed at looking at the problem and its possible reasons in a step by step fashion.
Author : susanna38
Unit I essay example
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