January 15, 2011
Unit One: Case Incident 1: How a UPS Manager Can Cut Turnover
1. In Buffalo New York, UPS operations prime objective was to find a way to fix the fifty percent a year turnover rate that costs them millions of dollars per year. To do this the company promoted Jennifer Shroeger to District Manager. The first thing she needed to do is to find what was costing the company so much money and why there was so much turnover. She knew that they had high turnover rates resulting in an increase of recruiting, selection, and training costs. She also knew a high rate of turnover could disrupt the efficient running of an organization (Judge, 2007). For example, on UPS's Pressroom website states, "UPS spends more than $300 million per year on training and education programs for its worldwide workforce". Jennifer saved over $1 million dollars in 2002 and dropped the turnover rate from fifty percent to six percent saving the company a lot of money (United Parcel Service of America, 2004-2009).
2. Ms. Shroeger also examined how to improve hiring, communication, the workplace, and supervisor training. Ms. Shroeger followed the Basic OB Model, Stage II and modified the hiring process to screen out people who wanted full time jobs and focused more on the college students. She offered classes on Saturdays for computer-skill development and career planning discussions, updated the break rooms and installed more personal computers on the floor. She also modified the communication style and motivation of each employee in his or her group (Judge, 2007). The importance of evaluating the different criteria is to see what effect it will have on the organization, the employees and their behavior. Then apply that knowledge to make the organization work more efficiently. The program is designed to improve productivity, reduce absenteeism,...