Turnover at Walgreens

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Case Synopsis

A. Case scenario
This case is about hiring and employee retention processes centered on new college graduates that, instead of offering ideal and permanent career pathways to these recent graduates and new employees, turn out to become for them a platform or a launch-pad from which they hunt for their dream careers after a couple of years. Despite the costs associated with and the high turnover trend caused by it, this practice continued over time and became increasingly unsustainable, with a rise in job insecurity, and subsequently a reduction in job satisfaction and organizational commitment that come with it. Initiatives from human resource management and the many changes in strategy attempted by senior management were not sufficient to reverse the employee job satisfaction and turnover negative trend.

B. Context of the case
The subject organization has each of its corporate department divided in sections headed by leaders, with each of them dealing with all aspects of operations conducted by the organization, a structure adopted in order to enhance efficiently and performance. The only concern therefore for management will be to pay close attention to time management and deadlines departments will have to meet. This situation led to an intense competition and rivalry among departments and sections because of workloads that keep increasing. A situation that was exacerbated by the hiring department to center its strategy on college graduates and new employees who mostly, once the 90 days probation period passed, used the organization to gain the necessary experiences to get better job; leaving the organization with cut in its workforce, employees that are more concerned about their next best job when they leave rather than building team cohesion and camaraderie, and high turnover rate. The root cause of the issue facing the organization can be traced to an irrational organizational structure based on a weak communication channel and a dysfunctional culture that is out of date, a leadership style and managerial strategic planning that are inefficient and unable to offer a work environment conducive to fostering employee job satisfaction. These ongoing problems coupled with ineffective team building exercises are breaking down the leadership and generating deep organizational behavior issues in the organization that have the potential of wiping out totally organizational commitment, and lead to increase non satisfied employees that are looking to use the organization as a launching-pad for better job opportunities. The moral and employees-employer relation within the organization can therefore be summarized as employees dissatisfied with the management style. This ultimately causes Walgreens to loose money due to turnover Employee turnover affects the effectiveness of management, the job satisfaction of employees, and the shareholder’s of Walgreens stock. Employee turnover has become a common problem within the organization. After a couple months, new employees recognize working for Walgreens is a stepping-stone for a different career path and stay for a couple of years only to gain work experience. The rate of employee turnover decreases labor efficiency. The end result is an increase in operational costs and a reduction in Walgreens’ profitability. This section of the paper will discusses the research used to assist in analyzing Walgreens Pharmacy’s high employee turnover problem as a result of organizational culture, ineffective leadership style, and employee dissatisfaction. Explain how your case relates to the topics examined in weeks 1 - 3. C. Case Outcome: strategies that minimize turnover and the benefits, limitations, and drawbacks of the restructuring process. A shift in an employee’s job satisfaction or job involvement can increase the chances of turnover intentions. The first step in a positive climate is making sure employees are satisfied with their current position. Managers will be...
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