Tanglewood Case Study-Manager Retention

Topics: Management, Organization, Strategic management Pages: 5 (1542 words) Published: February 29, 2012
Retention of managerial employees at Tanglewood is extremely important to the organization, their mission, and the organizational culture that Tanglewood values. As the organization continues to exponentially grow; their staffing and recruitment processes and procedures have not been integrated to focus on retention management. This paper will examine the relationship between managerial performance and turnover, why managers leave, additional data that the organization should utilize, equal employment practices, and recommendations for strategic retention strategies for managerial positions. Relationship Between Managerial Performance and Turnover

Tanglewood has a strong preference to hire internally for managerial positions because turnover rates for managerial positions pose a competitive threat. Before and during the employment relationship, Tanglewood conveys that their organizational culture and belief is to promote within, and from the bottom up. Because turnover is significantly greater with entry-level positions, it is imperative that subordinates have strong leadership from managers, making managerial retention vital to the organization. Why Managerial Employees Leave

The top three reported reasons managers leave Tanglewood are: superior alternatives, better benefits, and dissatisfaction with the organizational direction. While Tanglewood maintains that they are generally a market-leader for compensation, their benefits are not distinctive in giving them a competitive advantage. Having benefits packages that “are viewed at ho-hum in nature” (Heneman, Judge, Kammeyer-Mueller, p. 180) can be problematic for two reasons. First, existing employees who are dissatisfied will be easily lured away by competitors even if the pay is equal or slightly less if their benefit package is better because the employee(s) are already looking for a reason to leave. Secondly, competitors who offer considerably better benefits will have an instant competitive advantage for those existing employees who could be enticed by the benefits packages offered by other retail chains, even if they are otherwise satisfied at Tanglewood. The organization should not assume that employees are ‘lifers’ with a strong loyalty to the organization. Dissatisfaction with the organizational direction is not always avoidable, however, the psychological contract between employees leaving should be considered because it is an important element of employee perception. When managers leave for reasons like, “It’s too much of an uphill battle to make employee participation work here” (Kammeyer-Mueller, p. 53) the organization needs to consider that the issue may be avoidable because the underlying issue could be that this individual employee feels unsupported. Employees who leave for major life events is the most unavoidable reason given for managerial turnover. Often times, there is absolutely nothing an organization can do to prevent this type of unforeseeable turnover. However, Tanglewood could look to minimize the loss of employee turnover by understanding what major life events the organization could accommodate employees with. For example, if Tanglewood ascertains that the major life event only requires two to three months off, they could offer to supplement the employees’ income once FMLA benefits have been exhausted with a contingency that the employee returns and remains employed for a determined amount of time. This would show the employee that the company is loyal to them and in return the employee will hopefully be loyal to the organization. Regardless of whether managers are hired internally or externally, each employee participates in two months of training. The cost to hire someone new for a managerial position and train them is significantly higher than an alternative solution.

Additional Data to Improve and Understand Managerial Turnover Total elimination of turnover in any organization is unavoidable; however, minimizing...
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