Leadership And People Management Critical Thinking Example
Question One: Managing a work unit with high turnover rate and high job dissatisfaction in a high pressure work environment
A businessperson establishes a business in order to accomplish a particular task. Most efforts are normally geared towards making profits. They will always need people to assist them in meeting this task, the employees. These employees may be given different tasks but which all finally leads to the main aim of making profits. This team of employees that have been a specific common task is what is called a work unit. It is up to the employer to ensure that their salaries and working conditions are conducive enough for them work in in order that he may retain them. If they are dissatisfied with the job because, for instance, the pay is not fair or they cannot keep with the manager’s attitude and for many other reasons, they will leave. Employee turnover should be a concern for many employers. It is defined as the movement of employees into and out of the workforce of a work unit or a company. Every organization needs to have fewer turnovers in order to be profitable.
Employee turnover may be voluntary or involuntary. Voluntary turnover happens where an employee decides to leave an organization for his or her reasons. It may be caused by dissatisfaction in the pay. The pay may not be enough to pay for all their expenses and they may leave after having found a better job. It may also be caused by job stress which may be caused by being given too much than they can handle. This especially affects the women who normally have children to pick up from school and attend to at home. They also have other chores to attend to, like preparing supper for the family. Some even decide to quit their jobs completely and be housewives when they feel totally overwhelmed and when the employer doesn’t favor a more favorable work programme for them. Other employees may decide to resign if they feel that their skills are not being utilized well. A computer programmer, for instance, may feel dissatisfied working as a cashier. They may need a workplace that uses and helps them sharpen their skills and do work that they enjoy. Other reasons may include: personal preferences, influence of co-workers et al.
Involuntary turnover happens where the employer, for his own reasons, decides to terminate the employment relationship. It may happen where an employee is dissatisfied with the employee’s performance, or where there is a need to cut costs, downsize or restructure because of reasons that are independent of the employee who is affected. It also includes a situation where an employee decides to leave the organization for reasons that are beyond their control, such as death, retirement or leaving to take care of an ill family member.
Employee turnover may have a positive impact on the organization. Unfit employees are replaced by suitable ones and this increases productivity of the organization. The organization also gets to benefit from the diverse pool of talent from the many employees that get the chance to work there. A high rate of turnover especially in a high pressure work environment can however cause deep concern because of its expense factor. This is a work place there is so much to do in such a short time and with less people to do it. Turnover costs are both tangible (measurable) and intangible (relatively immeasurable). Intangible costs include disruption and disorientation of the production unit caused by the breakup of the work teams. New work teams need to be formed more frequently and accomplishing specific assigned tasks becomes more difficult or takes longer than it should have if no employee were to leave. It also results to the disruption of morale. Employees make friends while working and when one leaves it is normal for them to feel sad and demotivated. Where employees who leave are supervisors, there will be lessened supervisory efficiency. Tangible costs include the additional overtime money that will have to be paid to employees as they still have to accomplish their assigned tasks especially if there was a lot of work to do despite their reduced number. It also includes costs of advertising vacant positions through the media or recruitment brochures and posters, setting up interviews, recruiting and training the new employees. This are among the many negative effects of a high turnover rate which adversely affect the performance of the organization.
It is, therefore, important that employee turnover is as low as possible in order to lessen the costs associated with a high rate of turnover. The managers should ensure that they pay their employees fairly. The pay should reflect the value of the effort put in by the employee as much as possible. They should also alter it when prevailing economic conditions demand so. When the economy is not doing well for instance, and prices of basic commodities rise, their salaries should be adjusted accordingly. It is important that managers also ensure that they maintain a good relationship with their employees.
The managers should also not be rude to them or expect impracticable work results. They should praise where necessary, and with sincerity, and encourage employees who aren’t doing well. The employees should also be given work positions that match with their talents. The working conditions should also be suitable. The managers should enquire from them how they can improve their working conditions. Involuntary turnover may be reduced by hiring of fit employees by the employer. Employers should have made a perfect job description so that misconceptions among candidates may not arise as well. Considering candidates who are older and who have families may also be good as such would be looking for stability.
It is, therefore, important for businesses to do all that is necessary to reduce the rate of employee turnover as it adversely affects productivity and performance. This happens especially in a high pressure environment when there is so much to do in such a short time and with less people to do it.
Question Two: Long term use of temporary employee in workplace
The use of long-term employees has dominated over the decades, but this position is gradually changing. These employees were associated with stability, which is good for any business. The need to advertise and make contracts every so often was regarded as a waste of time that would affect the productivity and performance of the organization. Demand for temporary workers is however now on the rise. Employers no longer perceive the use of temporary workers as a cost cutting measure but rather a long-term staffing strategy. They also perceive them as being essential in their success and also enjoy the flexibility associated with such short-term contracts. These short-term employees are almost equally men and women, most of them being middle-aged, around 30 years of age.
Temporary working contracts were not brought about by lack of long-term employment. Rather, it is an innovation that is being embraced by more employers because of its flexibility, both to the employer and the employee. Whereas long-term employees intend to work indefinitely in the organization, temporary employees work for shorter periods that are included in their contracts. Their working period is ascertainable. This allows the organization to employ as many employees as possible as opposed to the number they would be able to employ if they were relying on long-term contracts. These many employees bring in a range of skills and talent to the organization. Perfect skills and talent result in increased performance which leads to increased productivity of the organization. It situation gives employers the chance to choose the best employees who they can keep longer in the organization by renewing their contracts. The company also doesn’t have to put up with unsuitable employees or spend money to train them because better ones will be found after their contracts expire.
Temporary contracts also make it easy for businesses to hire specific expertise when such a need arises. Managers may need to work on special projects that would require the attention of better qualified persons than those who are already in the organization. This would be an extra-large expense for companies with enough long-term employees, and such an idea would be done away with so as to cut on costs. The idea would work well in a company working with temporary workers. Such experts may be engaged till the completion of the particular projects and then released at short notice. The quality of work done in such project with experts would be much higher than that done where no exceptionally good experts were hired.
Moreover, long-term contracts are associated with higher absence rates of employees for various reasons including, maternity leave, annual leave, family issues, disability et al. Temporary workers are a best way of making sure that such absences don’t slow down the productivity of a business.
Additionally, support staff can always be recruited when, for instance, there is too much work to do and the organization’s employees cannot manage to finish it within normal working hours. Excess work would normally cause stress and negatively impact on the employees’ health. It would also reduce their productivity. Temporary workers can instead support the team and help increase the productivity of the organization.
Temporary working contracts are also beneficial to the employee. They enable them to attain a better work and home balance. They can receive salaries while still giving quality time to their families. The mothers can have more time to attend to small babies and young children and do all their chores satisfactorily. Fathers also get enough time to be with their wives and children. Children need quality time from both parents and in fact fare better than those who only receive attention from one parent. They feel more loved and there is always something that each parent can impact in the child that cannot be impacted by the other. Marriage trouble will also reduce as both partners will get sufficient time to bond.
Employees will also have sufficient time to rest and this will reduce the numbers of stress-related disorders in the country. Healthy persons are more productive. Such will improve productivity in the organization which will ultimately grow the economy. They will also find time for religious activities and other activities.
These temporary workers however need protection for them to be able to work productively. They should be protected from harsh employees who they find already working where they are taken in. They also face the risk of receiving lower wages and fewer benefits. This is occasioned by the traditional practice of raising wages after an employee has stayed for a considerable amount of time in the organization. Some temporary employees may not stay long enough to get a pay rise. They however should be entitled to fair wages and which should be adjusted with prevailing economic situations. Their safety should also be of great concern to the employees no matter how short their stay might be. They should be accorded adequate health and safety training and be protected from all health hazards. Employers should be held liable where either through lack of training and protection from health hazards, such employees are injured.
The long-term use of temporary employees at the work place is a great innovation that is gradually replacing the traditional practice of employing long-term employees. It brings a wide range of diverse talent to the organization and allows employers to find good talent at short notice. Such contracts are also more flexible to both the employer and the employees. It is however important that such temporary employees are protected as employers normally have a higher bargaining power and not all employees can make demands from them. Their pays and benefits should be fair and they should be treated in a similar way with the rest of the employees in all matters affecting their employment.
ACAS, 2007. Flexible working and work-life balance.
Allen, D. G., 2008. Retaining Talent: A Guide to Analyzing and Managing Employee Turnover. SHRM Foundation's Effective Practice Guidelines Series.
Arokiasamy, A. R. A., 2013. A Qualitative Study on Causes and Effects of Employee Turnover in the Private Sector in Malaysia. Middle-East Journal of Scientific Research .
Deligiannis, N., 2012. Temporary Workers: A permanent solution?. Hays Recruiting experts worldwide.
Employers Group, 2006. Turnover.
Hissom, A., 2009. Human Resource Management: Understanding and Controlling Employee Turnover.
Meier, K. M. &. A., 2010. Are Both Parents Always Better Than One? Parental Conflict and Young Adult Well-being. California Center for Population Research.
The Oklahoma Department of Labor, 2014. Protecting Temporary Workers in the Public & Private Sector.
Wandera, H. T., 2011. The Effects of Short Term Employment Contract on an Organization: A Case of Kenya Forest Service. International Journal of Humanities and Social Science.
Zeynep Ton, R. S. H., 2008. Managing the Impact of Employee Turnover on Performance: The Role of Process Conformance. OrganizationScience.
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