MT302 Organizational Behavior
March 9, 2011
Unit One: Case Incident 1: How a UPS Manager Can Cut Turnover
UPS’s operations in Buffalo, New York faced a major dilemma; they were facing a high turnover rate. Part-time employees were leaving at a rate of 50 percent per year resulting in an increase in absenteeism, work related injuries, and inaccurate shipping deliveries. In order to resolve this issue UPS promoted Jennifer Shroeger as district manager to reduce company cost, regain revenue, and retain employees.
UPS organization relies heavily on part-time workers. Most of the executives start as part-time employees then transition to full-time employees. UPS offers impressive pay, flexible hours, full benefits, and financial aid for employees wanting to further their education. With that being said, it still was not enough to keep employees at UPS. In addition to the high turnover rate, disruption of the organization’s productivity was in jeopardy because more experienced workers were leaving, resulting in more work for others, more hiring, and more training. According to the UPS website, UPS spends more than $300 million per year on training and educational programs for its employees. By controlling this issue, this would save the organization a lot of money.
In addition to turnover, other areas of improvement within the organization Jennifer examined were the improvement of the hiring process. Jennifer was able to modify the hiring process by employing people that want to work part-time, eliminating the expectation of full-time employment. Jennifer also distinguished and differentiated the five district groups that worked for her by age, stages in their career, and their needs and interest. As a result of that analysis, Jennifer was able to modify the communication style and motivation of each employee in his or her group (Judge, 2007). It is important to...