Mexa Fabric

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The high turnover at MexFabrics is a serious obstacle to productivity, quality, profitability, and company reputation. For MexFabrics, Production, is a major issue, the high turnover rate reduces the number of staff available to fulfill daily functions and is a very big challenge to the MexFabrics human resources manager, even beyond the issue of how well the work is done, as he experiences the problem of fulfilling the planned production output together with the time required for recruiting new personnel. There will be lost productivity associated with the interim period before a replacement can be placed on the job; lost productivity associated with the time required for a new worker to get up to the speed on the job. All these factors affect his ability to get the production orders from headquarters ready and is a big problem for him. Another major issue is the quality of product being produced as the high employee turnover threatened product quality at MexFabrics as inexperienced employees fill the positions vacated by the experienced staff. This can lead to customer dissatisfaction as customers are likely to experience dips in the quality of products. Another issue is MexFabrics reputation is threaten by the high turnover rate, the cost of employee turnover focuses on production and quality, as experienced staff are leaving the organization, the ability of MexFabrics to maintain a qualified workforce that can consistently produce quality products is challenged thereby negatively affecting the reputation of the company which is known to produce high quality product. Root Causes

The major root cause of employee turnover in MexFabrics is their organizational structure which involves their reward system, the strength of leadership, the ability of the organization to elicit a sense of commitment on the part of workers. Other root causes are
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