How a Ups Manager Can Cut Turnover Essay

1. In Buffalo New York, UPS operations prime objective was to find a way to fix the fifty percent a year turnover rate that costs them millions of dollars per year. To do this the company promoted Jennifer Shroeger to District Manager. The first thing she needed to do is to find what was costing the company so much money and why there was so much turnover. She knew that they had high turnover rates resulting in an increase of recruiting, selection, and training costs. She also knew a high rate of turnover could disrupt the efficient running of an organization (Judge, 2007). For example, on UPS’s Pressroom website states, â€Å"UPS spends more than $300 million per year on training and education programs for its worldwide workforce†. Jennifer saved over $1 million dollars in 2002 and dropped the turnover rate from fifty percent to six percent saving the company a lot of money (United Parcel Service of America, 2004-2009). 2. Ms. Shroeger also examined how to improve hiring, communication, the workplace, and supervisor training. Ms. Shroeger followed the Basic OB Model, Stage II and modified the hiring process to screen out people who wanted full time jobs and focused more on the college students. She offered classes on Saturdays for computer-skill development and career planning discussions, updated the break rooms and installed more personal computers on the floor. She also modified the communication style and motivation of each employee in his or her group (Judge, 2007). The importance of evaluating the different criteria is to see what effect it will have on the organization, the employees and their behavior. Then apply that knowledge to make the organization work more efficiently. The program is designed to improve productivity, reduce absenteeism, turnover, and deviant workplace behavior; and increase organizational citizenship behavior and job satisfaction so that managers can offer guidance in creating an ethically healthy work climate (Judge, 2007). 3. Ms. Shroeger found that college students were most interested in building skills that they could apply later in their careers so she offered them Saturday classes for computer-skill development and career-planning discussions. Since many new UPS employees in Buffalo are intimidated by the huge warehouse where they had to work, Ms. Shroeger improved lighting throughout the building and remodeled break rooms to make them more user-friendly (Judge, 2007). To help new employees adjust, she turned some of her best shift supervisors into trainers who provided specific guidance during new hires’ first week. She also installed more personal computers on the floor, which gave new employees easier access to training materials and human-resource information on UPS’s internal network. Shroeger also expanded training so that supervisors had the skills they needed to handle increased empowerment and to see how difficult it is to be a manager (Judge, 2007). 4. In my opinion, I don’t think that it is unethical to teach supervisors to demonstrate interest in their workers as individuals. I know from personal experience that when my supervisor treated me more like a partner/friend I worked harder and felt more proud to be where I was working. I valued my job and valued the people I worked with. I think that when a supervisor shows interest in their employees, the employee will be more likely to be at work and be proud and productive. 5. The supporting facts of the case that support the argument that OB should be approached from a contingency perspective are how she improved hiring, communication, the work place, and supervisor training. She analyzed the large database of information that UPS had on her districts employees and made many changes to adding skills and career development classes, improved conditions in the warehouse and buildings and finally expanded supervisor training. The approach made a statement that she was responsible for determining which managerial approach was likely to be most effective in achieving her cutting the turnover rate. It resulted from a fifty percent turnover rate per year to six percent and an annual savings of $1 million dollars. Buffalo district gained a twenty percent reduction in lost workdays and finally dropping from four percent to one percent in packages delivered on the wrong day or wrong time.