Case Study of Organizational Decline
Case Study of Organizational Decline - RW
Introduction
This report is based on a case study of a large company with poor financial performance during the last few years and facing the falling of sales and profits and rising of employee turnover at the moment.
The continuously worsening situation of sales and profits and employee turnover evidence the company is undergoing the organizational decline stage within the organizational life cycle.
The layoff and hiring replacement of a top level manager are signs of the company’s reactions for catering the organizational decline. Layoff of a top level manager prepared a foundation to end the past practice and the hiring of the replacement generates an atmosphere to implement organizational changes to revive the organization from decline. At the present moment, employees’ behavioral issues are at high priority. To improve the atmosphere will improve the employee turnover and retain more capable employees to help improve the company’s problems.
1. Problem identification
The data of sales, profits and employee turnover are giving bad signals. The causes resulted these issues are to be identified. 1.1 Possible causes of rising of employee turnover
Employee turnover, stated as one of the two issues of the company, can be possibly resulted by different causes.
Since 1950s, in the studies of employee turnover job dissatisfaction is a basic tenet of cause (Holtom et al. 2008).
In 2000s, job dissatisfaction is still commented as a trigger to employee turnover (Wagner and Hollenbeck 2005,
p.143).
According to the Hygiene Factor theory, the factors that generate job dissatisfaction are including security, status, relationship with subordinates, personal life, relationship with peers, salary, work conditions, relationship with supervisor, supervision, company policy and administration (Herzberg et al. 1959).
However, job dissatisfaction is not the unique cause of employee turnover. Employees also quit their
Introduction
This report is based on a case study of a large company with poor financial performance during the last few years and facing the falling of sales and profits and rising of employee turnover at the moment.
The continuously worsening situation of sales and profits and employee turnover evidence the company is undergoing the organizational decline stage within the organizational life cycle.
The layoff and hiring replacement of a top level manager are signs of the company’s reactions for catering the organizational decline. Layoff of a top level manager prepared a foundation to end the past practice and the hiring of the replacement generates an atmosphere to implement organizational changes to revive the organization from decline. At the present moment, employees’ behavioral issues are at high priority. To improve the atmosphere will improve the employee turnover and retain more capable employees to help improve the company’s problems.
1. Problem identification
The data of sales, profits and employee turnover are giving bad signals. The causes resulted these issues are to be identified. 1.1 Possible causes of rising of employee turnover
Employee turnover, stated as one of the two issues of the company, can be possibly resulted by different causes.
Since 1950s, in the studies of employee turnover job dissatisfaction is a basic tenet of cause (Holtom et al. 2008).
In 2000s, job dissatisfaction is still commented as a trigger to employee turnover (Wagner and Hollenbeck 2005,
p.143).
According to the Hygiene Factor theory, the factors that generate job dissatisfaction are including security, status, relationship with subordinates, personal life, relationship with peers, salary, work conditions, relationship with supervisor, supervision, company policy and administration (Herzberg et al. 1959).
However, job dissatisfaction is not the unique cause of employee turnover. Employees also quit their