Director of human resource at Index Living Mall has to solve the issues of enhancing employee turnover specially at middle level management. CEO of the company need a report after conducting thorough analysis; recommendations are also required at the end of report.
- Write an overview about the nature of project and background of Index Living Mall.
- Critically evaluate the reasons of problem i.e. high employee turnover at Index Living Mall.
- Provide relevant conclusion and recommendations on the basis of findings.
In the current business environment, firms are using technology in a great way through which they are able to complete all of their work within stipulated period of time and in an effective way. Moreover, in every organization, it is required to motivate the employees to work in right direction so that their performance can be enhanced. Earlier, competition was also not high as companies enjoyed monopoly in market. In the medium sized firms, the turnover in context to staff members is very high and because of this, several reasons arise because of which people left their job. Hence, firms use several models and theories which help them in resolving the issues and problems which they are facing with employees (Popescu, Comănescu and Sabie, 2016).
There are various factors which have accountability of increased employee turnover that are needed to be solved within stipulated time period. Top executives who formulate policy and procedures which are followed by human resources in an effective way need to have an interaction with lower level on regular basis that makes entity to earn a good amount of image in eyes of workers. The report is based on Index Living Mall Co. Ltd. which is a Thailand based furniture retailer firm that was found in the year 2002. Although, 31 branches are there throughout the country.
This assignment will talk about the issues faced by employees in organization and why there is increment in employee turnover, it is required to make an analysis of company in correct format too. Non-communication and employee dissatisfaction in company bring an increased labour turnover. It is that which needs to be overcome in right format and has to call up in a proper model for attaining a good working too.
Background of organization
It has been seen that in market, there is high competition and to fight with the cut-throat competition, organization has to use its human resources to perform in a better way and in right direction so that company can enhance its productivity and maximum sales can be increased as well. Here, the employees and managers are also able to make use of them in the best possible manner. Managers have the responsibility to get work done from employees within time period described by them only (Wellington, 2015). The Index Living Mall Co. Ltd. is a company which is serving millions of people with their services and making them satisfied but there are various kinds of flaws which are being faced by company because of which they are not able to achieve competitive advantages in the market. One of the main reasons that affect firm in huge way is increase in labour turnover. It was known that earlier, company was having great profitability and productivity in the market and thus, it was required for them to bring several solutions to such problem so that they can perform in a corrective manner and attaining their goals and objectives effectually. Basically, issues are related with human resources as they are not satisfied with some of the aspects in enterprise.
Generally, training and development is the best option to motivate employees to perform in a better way but in case of Index Living Mall, it is necessary to make use of various theory and models so that analysis of issues and conflicts can be done in a proper manner. It is required to determine the problem of increase in turnover of employees and getting in some of the best solutions to retain human resources (Berzkalne and Zelgalve, 2014). Moreover, if employee is satisfied with firm then an effective environment will be maintained in company through which each and every employee will be encouraged to enhance the level of performance in a proper way. Some of the aspects which take place with employee’s satisfaction are:
- Communication is required to be present between each employee and departments because through this, work will be completed in the set period of time. Although, communication is considered as the backbone of firm which helps entity to become stable in market.
- It creates coordination among employees which reduce the chances of having disputes and conflicts in organization and help firm in attaining its goals and objectives in a better manner.
- Human resources will be able to perform in any situation and will adapt the changes too without any problems which will eventually make them a multi-tasker.
There are many more aspects which help in building a positive image of company in the market because of which customers are also attracted towards the entity as well. Index Living Mall Co. Ltd is also suffering from various kinds of issues in organization which are required to be analysed in a great way so that firm can perform effectively.
Analysis of problems in organisation
Every firm in this world has some issues in their working environment and if the company wants to achieve their goals and objectives, look up to these issues in a proper manner and derive suitable solutions about it as well (Stone and Stone, 2013). Therefore, a proper analysis will help company to know the real reason behind arising these kinds of issues and problems in company. In Index Living Mall, a high turnover of managers and human resources is noticed and it is needed to determine the accurate cause of it.
After having research within organization, a survey was conducted for employees so that actual reason can be understood. There are various reasons that come in contact with top executives of entity in relation with human resources. Some of those reasons are:
- Employee Resourcing
- Employee Engagement
- Performance management and rewards
- Talent management
- Different culture of employees
Let us understand these points in better way:
Employee’s Resourcing: In the marketplace, there are so many people who are having great talent in them and companies are looking for these who can implement their talent and knowledge in organization (Vaiman and Collings, 2013). But sometimes, management of company make wrong choices and select those people who are not able to cope up with other employees in company and also not able to learn different things as well. These are some of the reasons because of which employees give resignation. Basically, it is required to choose that person who is a great performer and lead to work in diverse environment and with different people as well. Choosing the wrong person who cannot manage to work in right direction always increases the number of turnover very.
Employee Engagement: It helps a company to complete their tasks and activities within the time period specified. It is required by company to divide the work in a better manner and assign activities and tasks according to the qualification of employees as this leads to attain proper goals and objectives. Basically, in an organization, it is crucial to engage employees in different activities as this could increase their performance level in an effective way. If employees are engaged not according to their working skills and personality in organisation, they would not be able to perform in a proper manner and accordingly, loss of work will be there and such thing needs to be analysed (Johnson, Schnatterly and Hill, 2013). For instance, if an employee is having specification to work in finance department and company is keeping him in production department then it is not a correct step because here now the employee will not be able to use their skills and knowledge in an appropriate manner and thus achieving the goals and objectives of the company as well. Although, this aspect is also considered in the same scenario as with it, manager and human resource turnover is high. Normally, it is required to analyse same for bringing in proper solutions for it.
Performance management and rewards: Many large firms are having a better management and reward system which bring employee satisfaction in company and thus, they have a less turnover of human resources because of which they earn higher profits and able to attain their set targets and objectives. In medium sized enterprises, the reward system is not so effective because of which employees become dissatisfied and they do not perform effectually. Hence, not having proper rewards in organization does not encourage human resources to work hard and increase the enhancement of productivity and profit in employees (Bratton and Gold, 2017). Firm has also analysed this as one of the most important factor for increasing labour turnover in right direction. Rewards can be in various forms and some of those are bonus, holidays, incentives and promotion, etc. These are those which need to be performed in entity so that employees can retain its enthusiasm for working in a great way. Even though, it is required by firm to bring in effective management and rewards system so that can it reduce the labour turnover and such concept do help employee to work in right direction and leads to attain the goals and objectives too.
Talent management: It is one of the crucial modes of having an increased labour turnover and it is required that company can reduce and minimise employee turnover. If people in organisation are not getting work according to their talent and specification then this will lead to have loss of proper working in various ways. For instance: an individual in organization is having talent to perform some of the tasks in a better way and even though there performance is not getting an importance in organization leads to leave the organisation. Although, it is required to promote those individuals who is working hard and performing in great way also. Talent management is having the responsibility to take care of particular employees that make them to perform in a better way. Management of Index Living Mall should include this aspect as main and keep the right person at the right job so that they can perform in right format too.
Discrimination: Many human resources are having different perspectives for which they are working in organization (Taylor, 2017). Discrimination is that which needs to be reduced in organisation as this is involved as the major reason of having an increase in employee and manager turnover. Partiality in between employees create chances of conflict and disputes in employees which hinder the working in organization and leads to bring in some effective solutions for such also that it can be minimised or eliminated in perfect way. Discrimination can be there in the form of many ways as in kind of salary, partiality in between men and women, having partiality because of working, etc. It needs to be minimised and effective theory of working should be utilised and has to provide a better solution to all such in better way too. Moreover, discrimination should not be there and it leads to have betterment of working and it somewhere also makes it lead to earn a good amount and leads to create a healthy working environment too.
Different culture of employees: Different types of employees are there in an organization who belong to various cultures and have different working criteria and it can even become a disturbing factor while doing activities of company. Employees have to work in right direction so that a better working can be seen in organisation. When a group of people are being made in firm to complete a particular task within the time period, even at that time it creates a hurdle for them to work because every individual person is having different thoughts and mind-set to complete the activities and it should be matched with one another (Harper, Harper and Snowden, 2017). It is quite hard to bring in employees to work together for attainment of common goals and objectives too. Although, several kinds of people from different backgrounds create an issue in working and increase the number of human resource turnover.
These problems need to be analysed in a proper manner in organization so that management and top executives can bring in solution for reducing labour turnover in right a format. Normally, employees and managers are the people who work in a better way so that organization can attain the goals and objectives effectually. Even though, firm at the time of determining different issues they underwent through various thing and required to solve those as well and somewhere if they succeed in great way and they will lead to attain the goals and objectives in better manner. There were various kinds of situations which a company face while finding their issues in a proper manner and after this, an effective solution is also required to be provided to them because through this only will be able to attain their goals and objectives in a proper manner.