Club Med Harvard Business Case

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Is GO turnover really a problem at Club Med? What are the causes of turnover at Club Med? How does the international factor play into Club Med’s issues?

Club Med is experiencing considerable turnover rates with GOs. This turnover can be either good or bad depending on the type of employee that is involved. Turnover is advantageous if the employee that quits or is terminated is not adding value to the company. This would be functional turnover. The organization should try to stop dysfunctional turnover, which is when a good employee quits for either avoidable or unavoidable reasons. It is very important that they hire the right people that “fit” with the organization in order to keep the turnover rate of high-quality employees to a minimum. In addition to high turnover rates, Club Med also faces cultural differences between its European managers/GOs and American managers/GOs. American GOs are finding it difficult to advance into management positions within the organization. Amzallag needs to recognize and understand that cultural differences exist between European and American/Canadian employees. These differences have a serious impact on communication and management of employees. In order to reduce the negative effects of cultural differences, Club Med should implement a diversity-training program that would teach various topics such as language, customs, beliefs, values, and managerial techniques concentrating on diverse work groups. This is also what they talk about in the article called “Managing multicultural teams”, in their four strategies they include “Adaptation”, and they say that when team members have this mind-set, they can be creative about protecting their own substantive differences while acceding to the processes of others. Why does Club Med rotate all of their employees every six months? How does this rotation influence the GO’s life? Club Med rotate all of their employees because the company management states that after six...
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