The Problem of High Staff Turnover in a Small Thai Design Company

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HUMAN RESOURCE MANAGEMENT

Title: The problem of high staff turnover in a small Thai design company

Length: 2,563 words Submitted by: Date of sub mission:

Executive Summary
Box Exhibit Co., Ltd. is a small design company in Thailand. The company provides their clients a design service in a number of types such as corporate identity design, exhibition design, concert design and other types of design. The company has many clients and it seems relatively successful. However, It has been experiencing a problem of high staff turnover for approximately ten years since the company opened. Although there are only seven or eight staff in the company, there are staff resigning and there are new staff recruiting every year. This is considered to be a problem of lack of motivation. To analyse the problem, Herzberg’s (1959) Hygiene and Motivation Factors Theory is used because the problem is a motivation issue. After the analysis, several causes of the problem are discovered: policies and administrative practices, salary and benefits, supervision, recognition and, growth or advancement. Some of possible solution to each causes of the problem are suggested. For example, Setting up clearer policy and administration, paying for overtime and providing more benefits, providing recognition and rewards, and developing new organisation structure. This report recommends that the optimal solution to the problem is to develop new organisation structure. It suggests that the company’s structure, which are absolutely flat, should be restructured in order to eliminate the problem of supervision, communication and advancement opportunity.

Contents
Page 1. Introduction 2. The Problem and Background 1 1

2.1 The Problem ……………………………………………………………………..1 2.2 About The Company……………………………………………………………..1 2.3 The Reason Of Exploring The Problem………………………………………….2 3. Analysis Of The Problem 2

3.1 The Hygiene Factors……………………………………………………………..2 3.2 The Motivation Factors…………………………………………………………..4 4. Aim Of The Solution To The Problem 5

4.1 Objective…………………………………………………………………………5 4.2 Limitation………………………………………………………………………...5 5. Possible Solution 5

5.1 The Hygiene Factors……………………………………………………………..5 5.2 The Motivation Factors…………………………………………………………..6 6. Evaluation Of Each Solution 7

6.1 Setting up clear policy and administration…………………………………….....7 6.2 Paying for overtime and providing more benefits………………………………..7 6.3 Providing recognition and rewards……………………………………………….7 6.4 Developing new organisation structure…………………………………………..7 7. Conclusion 8. Recommendation 9. List Of References 8 8 8

1. INTRODUCTION

In Thailand, staff turnover is one of major problems that many companies have faced. Box Exhibit Co.,Ltd., a small design company with seven to eight staff, has been facing this problem for almost a decade. Five or six sets of staff resigned during approximately ten years of its operation. This has led to numerous problems to the organisation such as high cost of new staff training, work environment or work efficacy. This report explores the company’s human resources management issue and find out the solution to eliminate this problem in order to lower the cost of human resources and to make all staff work efficiently. The structure of this report is as follows.

● This report first undertakes a detailed description of the company’s problem and investigates the causes of the problem by using Herzberg’s(1959) Hygiene & Motivational factors. ● Secondly, possible solutions to the problem will be suggested according to the causes discovered in the previous section. ● Thirdly, A discussion of advantage(s) and disadvantage(s) of different solutions will be made. ● Finally, the optimal solution will be suggested.

2. THE PROBLEM / BACKGROUND

2.1 THE PROBLEM The problem of high staff turnover in Box Exhibit Co.,Ltd. lasted for almost ten years since it opened.All staff were not satisfied and they did not stay longer than two years...
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